Profits at Hotel Chocolat Jump 28%

Hotel Chocolat, the premium British chocolatier that listed on the London Stock Exchange’s Alternative Investment Market last year, has posted strong half year results as benefited from recent investment in the business.

During the 26 weeks ended 25 December 2016, the group’s pre-tax profits climbed 28% to £11.2m on revenues up 12% to £62.5m.

Underlying EBITDA grew 27% to £13.7m with margins increasing from 19.7% to 21.9%.

Hotel Chocolat said it saw strong sales growth across its retail, digital & corporate channels, helped by improved Christmas ranges and better product availability. Meanwhile, the company opened ten new stores which contributed 4% to group sales.

The group added that it completed significant capital investments at its factory in September which improved manufacturing capacity by 20%. The increase enabled the company to produce more stock and maintain product availability right up to the end of the Christmas season.

Angus Thirlwell, Co-founder and Chief Executive Officer of Hotel Chocolat, commented: “This has been another period of good progress for Hotel Chocolat with strong growth in both sales and profitability. The critical Christmas period was very successful, helped by good availability, popular and innovative new ranges and significantly increased digital transactions. We have strong plans in place for the key spring seasons of Mother’s Day and Easter and are confident of further progress.”

He added: “We continue to make good headway against our three key strategic objectives of opening more stores, improving our digital capability and increasing our production capacity.”