Direct to consumer premium chocolate brand Hotel Chocolat (HOTC:AIM) reported strong growth in revenues and profits in the first half to 26 December 2021.
Growth was driven by a significant increase in active customers across all markets where the company operates.
MORE CUSTOMERS
UK active customers increased 38% to 2.3 million, while the US active customer base more than doubled, driving a 120% increase in sales to £2 million.
The company said its Velvetiser in-home drinks system proved a particularly big hit in the US market.
In Japan the active customer base grew by a remarkable 1,000%, driving joint venture customer sales up 131%.
Group revenues rose 40% to £142.9 million while pre-tax profit jumped 56% year-on-year to £24.1 million. Higher profit growth was due to selling higher-margin online and wholesale products and operating efficiencies.
Earnings per share increased 46% to 14.2p. The company paused its progressive dividend policy two years ago to accelerate growth plans.
The firm said trading in the second half continued to be in line with the board’s expectations. The shares fell 2% to 440p on profit taking after gaining 13% over the last week.
GLOBAL BRAND APPEAL
Since the onset of the pandemic Hotel Chocolat has shifted its strategy from being a mostly UK-focused retail brand to becoming a digitally-led global brand.
Co-founder and chief executive Angus Thirlwell commented: ‘I am delighted we have achieved a great set of results both in terms of sales and profits, indicating the global strength of the Hotel Chocolat brand and our direct-to-consumer business model.
‘These results enable continued new job creation based in our British manufacturing operations, as well as roles in technology and multi-channel retailing.’
INVESTING FOR FUTURE GROWTH
The company raised £40 million of new equity in July 2021 to expand production capacity to enable the business to double revenues to £500 million a year.
It confirmed half of the proceeds have been deployed, and said it plans to open a new production line in the autumn, increasing hot chocolate capacity by 60% to support the success of the Velvetiser,
