// Hotel Chocolat’s profits surge following a substantial growth in key markets such as the UK, US and Japan
// The chocolate specialist reported a 38% increase in its active UK database to more than 2.3 million customers during the period
Hotel Chocolat has hailed another strong trading period for the business despite wider inflationary pressures as profit grew faster than sales growth.
The Chocolate specialist registered a surge in profits following a brand appeal increase in key markets like the UK, Japan and the US.
In the 26 weeks ended 26 December, the group’s profit before tax was up 56% to £24.1m, while the underlying EBITDA grew 35%, from £24.9m to £33.8m.
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Hotel Chocolat’s revenue rose 40% bringing with it a strong balance sheet with a £53.8m net cash.
“I am delighted that 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,” said chief executive Angus Thirlwell.
He also noted the work the retailer has been doing in Ghana with its ‘Gentle Farming’ sustainability programme.
“A key personal highlight in the period took place in Ghana, where we launched our pioneering Gentle Farming programme, meeting with farming families, local community groups, and the government. Our programme funds an achievable decent living income, hand-in-hand with replanting indigenous trees to shade the cacao and regenerate biodiversity,” he said.
In key markets such as the UK, Hotel Chocolat reported a 38% increase in active customer database, while in the US customer numbers surged by 119% following the boom of Velvetiser drinks. Japan’s consumer sales also skyrocketed, growing by 131%
“The last two years have been a period of very significant change both globally and within the business as we have evolved from a UK store-led brand to a globally ambitious digital-led brand with a broad-range of luxury cacao products,” he added.
“Since the end of the financial reporting period, trading has continued to be in line with the board’s expectations. The multi-channel performance of the UK remains encouraging, and the new markets continue to show promising potential for growth and profitability.”
“A focus on bringing happiness through chocolate in every aspect of our business model will further strengthen and nurture the appeal of our brand, helping us achieve our goal of becoming the leading global direct-to-consumer premium chocolate brand.”
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