British chocolatier Hotel Chocolat Group Plc (LON: HOTC) posted impressive revenue growth in its full year trading update, for the year ended 1 July 2019.
With profits expected to be in line with market expectations for FY19, Hotel Chocolat revenues rose to £132 million – a 14% increase on FY18 revenues.
The Group’s strong performance was bolstered by the expansion of its outlet portfolio, with the Company opening 16 new locations during the year. The Company said these branches contributed 5% to sales year-on-year. It added that two of these store openings were in the US and two were in Tokyo, Japan, as part of a joint venture.
Hotel Chocolat comments
Angus Thirlwell, Co-Founder and Chief Executive Officer of Hotel Chocolat, said:
“I’m really pleased with our performance this year, delivering strong growth across all parts of the Hotel Chocolat multi-channel, direct-to-consumer model. New activities in the year included openings in the US and Japan; the launch of the Velvetiser – our in-home drinking chocolate system; and the introduction of our VIP ME rewards card scheme, all of which present substantial future growth opportunities.”
“Our pace of innovation is relentless. In our drinks and ices range we are seeing the most prolific new product Instagramming in our history, with Billionaire’s Sundaes, Choc Shakes and Vegan Chocolate-Dipped Lollies generating lots of excitement”.
The Company’s shares rallied 1.69% or 6p following the update, up to 361p a share 17/07/19 11:30 BST. Analysts from Peel Hunt and Liberum Capital have reiterated their respective ‘Buy’ stances on Hotel Chocolat stock.