Investors were sweet on Hotel Chocolat Group PLC (LON:HOTC) Wednesday morning after the chocolatier reported some tasty Christmas numbers.
In an update for the 13 weeks to 30 December, the AIM 100 firm said revenues had risen 15% year-on-year (YOY) with growth across its retail, digital, and wholesale channels.
READ: Hotel Chocolat opens first store in Japan, further expanding in international markets
The group had also opened 15 new stores in the six months ended December, with chief executive Angus Thirlwell saying these openings had contributed 5% of the growth in the Christmas period.
The firm now has 117 stores operating in the UK domestic market.
Another achievement was the group’s Velvetiser in-home hot chocolate maker, which had sold over three times the company’s initial forecasts.
Thirlwell added that the group’s wholesale partnerships had been “notable successes” with strong growth and balancing lower margins with lighter capital investment.
He also said the group’s new location in New York and a joint venture in Tokyo which opened in November had seen an “encouraging” initial response from customers.
Post-Christmas, the company said trading had continued in line with expectations and that it would report its half-year results on 26 February.
Recent share weakness “wholly unwarranted” says broker
In a note to clients, analysts at broker Liberum said the company’s results were “an exemplary outcome in light of the broader retail market”, adding that the expectation-beating revenues had helped offset the cost of a new channel and product launches.
The broker added that the recent weakness in the shares, which have fallen around 17% in the last 12 months, was “wholly unwarranted” and that a strong rebound was expected as the medium to long term catalysts were “highly achievable”.
Liberum rates Hotel Chocolat at ‘Buy’ with a price target of 410p.
Shares were up 4.6% at 282.5p.