Hotel Chocolat on a high as profits outstrip sales growth

For the period covering 26 weeks to December 26, 2021, the chocolate specialist reported a 56% increase in profit before tax to £24.1m and a 40% increase in revenue to £142.9m. 

For the same period, underlying EBITDA increased 35% to £33.8m, while net cash finished the period at £53.8m. 

Hotel Chocolat reported a 38% increase in its active UK database to more than 2.3 million customers during the period. 

The retailer’s international businesses in the US and Japan also continued to grow strongly. Hotel Chocolat grew active customer numbers by 119% in America, while its Japanese joint venture reported a 131% increase in direct to consumer sales. 

Hotel Chocolat co-founder and chief executive Angus Thirlwell hailed another strong period of growth for his business. He also highlighted the work the retailer has been doing in Ghana with its ‘Gentle Farming’ sustainability programme.

“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. These results enable continued new job creation based in our British manufacturing operations, as well as roles in technology and multi-channel retailing.

“In the UK, we continued to entice many new customers to Hotel Chocolat, growing our active customer database by 38% to 2.3m. Our unparalleled pipeline of new product launches means I am confident we will be able to excite and retain their custom for many years ahead. In the US, our digital model drove an increase of 119% in our active customer database, with our Velvetiser in-home drinks system proving a great hit, and in Japan our customer database grew strongly, with the JV business now truly multi-channel, across online, digital partners, and 31 stores.

“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.

“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. The team has successfully managed to adapt to the continuously changing landscape and we have remained focused on our opportunities, delivering a sustained acceleration in growth over the last 18 months.

“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.”