Despite revenue growth, Centrica’s Hive has reported significant losses for 2023.
- Hive experienced a £28.2m pre-tax loss in 2023, exceeding its 2022 losses.
- Despite increased revenue from £49.8m in 2022 to £62.3m in 2023, profitability remains elusive for Hive.
- Centrica’s broad energy management ambitions continue despite financial challenges at Hive.
- Centrica showed strong results in other sectors, with British Gas Energy profits rising significantly.
Despite a noteworthy increase in revenue, Hive, the smart home devices brand under Centrica’s ownership, has recorded a substantial pre-tax loss of £28.2m for 2023. This marks a rise from the £25.6m loss experienced in 2022, highlighting the brand’s ongoing financial challenges.
Interestingly, Hive’s revenue climbed from £49.8m in 2022 to £62.3m in 2023, the highest since 2019. However, this financial growth has yet to translate into profit, continuing a pattern since the company’s inception over a decade ago, with accumulated pre-tax losses nearing £600m.
A statement sanctioned by Hive’s board reaffirmed its dedication to supporting the UK’s transition to a greener future. The company is set on providing residential customers with green energy solutions, aiming to assist in managing and reducing energy consumption effectively. Additionally, Hive intends to bolster its market position by offering advanced heating solutions and subscription services that promise improved energy insights and automation.
The brand remains integral to Centrica’s broader strategy of expanding within the home energy management space. This strategy involves adopting alternative technologies to enhance energy efficiency and cost-effectiveness for consumers, aligning with Centrica’s net zero ambitions.
Meanwhile, Centrica’s overall performance has shown resilience in other areas. The company’s retail sector observed a significant profit surge, with British Gas Energy’s profits escalating from £72m to £751m, slightly outperforming market forecasts. This boost helped mitigate declines in other divisions, notably Centrica Energy, where profits from energy trading and asset management saw a reduction.
Centrica’s Hive continues to face financial hurdles despite revenue growth, heavily investing in the green energy sector.
