Hotel Chocolat Group (LON:HOTC) has reported a 15% rise in first-half profits and revenue, boosted by strong sales growth across its retail, digital and corporate channels, although its shares retreated on a touch of profit-taking.
The chocolatier saw its pre-tax for the six months to December 31 increase to £12.9mln, up from £11.2mln at the same stage a year earlier, as revenue rose to £71.7mln from £62.5mln.
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The group said its sales were boosted by 10 new store openings during the period, 16% growth in sales from its website as traffic increased, as well as a strong Christmas performance.
It pointed out that digital sales overall were up 13% year-on-year, with new wholesale accounts with Amazon.com and Ocado Group PLC (LON:OCDO) contributing 6% sales growth.
Christmas period again successful
Hotel Chocolat's chief executive, Angus Thirlwell said: "This has been another period of strong progress for Hotel Chocolat with growth in both sales and profits. The critical Christmas period was again successful, helped by further improvements in availability, our best ever seasonal range and the extension of our one-stop gift solutions range."
He added: "Recent trading, including the Valentine's period is in line with the board's expectations and we continue to make good progress against our three key strategic objectives of opening more stores, improving our digital capability and increasing our production capacity."
In a note to clients, analysts at Liberum Capital increased their target price for Hotel Chocolat shares to 410p from 323p and reiterated a ‘buy’ rating.
They said: “The results give us confidence in our full year forecasts and reflect the continued trading momentum and strategic progress that is being achieved.”
Hotel Chocolat shares were down 1.5% at 317p in late morning trading, albeit having risen by 26% over the past year.