Hotel Chocolat increases profit forecast after Christmas sales rise

Hotel Chocolat
Total group revenue rose 63% cent on a two-year basis
// Hotel Chocolat sales increased over the Christmas period
// CEO Angus Thirlwell expects full-year earnings to come in ahead of expectations

Hotel Chocolat boss has said he expects full-year earnings to come in ahead of expectations after Christmas sales increased.

The retailer saw total group revenue rise 63% cent on a two-year basis in the second quarter to December 26.

That brought total revenue growth in the first half of 56% by the same measure.

READ MORE: Hotel Chocolat reports strong online trading

The core UK market grew by 38%, the US by 128% and Japan – a joint venture – by 131%.

These results demonstrate that Hotel Chocolat is connecting with more customers, as we invest continually in new product creativity, driving growth across channels and categories, and in our ‘gentle farming’ initiative supporting cacao-farming families,” Hotel Chocolat co-founder and chief executive, Angus Thirlwell said.

“All of our growth drivers are behind the acceleration in sales: Velvetiser in-home drinks system, VIP loyalty rewards, and digital, whilst the USA, global wholesale, and the Japan joint venture are finding the formula for sustained growth, and our UK domestic market still has huge potential.

“Our Velvetiser in-home drinks system was a star performer during the period. The majority of our subscription customers are now coming from our popular hot chocolate and coffee machines and drinks.

”We invested in refreshing our key chocolate gift ranges in the period and that resulted in an immediate and strong uplift in sales, particularly the higher price-point categories.”

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