Hotel Chocolat raises £22m to fuel online and international growth

The chocolatier said the cash would be ploughed into its medium-term growth strategy, which includes its expansion into the US and Asia, increasing its distribution and warehouse capacity, and investing in its core UK business – both in stores and online – once the crisis had passed. 

Hotel Chocolat said the funds would also provide it with “additional flexibility if it so becomes needed” during the coronavirus crisis. 

The business said it was adopting a “prudent approach to expansion” while the global pandemic rages on.

Hotel Chocolat said trading in the UK and its international markets in the USA and Japan had been “encouraging” until the end of February, with revenues increasing 6%.

However, it cautioned that sales had slowed in March, falling 5% year-on-year during the month so far.

The retailer added that a drop in footfall and potential store closures during the crucial Mother’s Day and Easter periods would further impact sales and profits. The two events account for around 12% of Hotel Chocolat’s annual revenues. 

Hotel Chocolat co-founder and boss Angus Thirlwell said: “The money raised today will help fund our growth plans both in the UK and overseas and we’re pleased our investors have supported us with today’s placing.

“Until there is more clarity on the impact of the coronavirus outbreak, we’ll continue to adopt a prudent approach to expansion. However, our brand and customer loyalty is strong and with our highly successful multi-channel model, I’m confident in the long term future of the business.”