Premium chocolate retailer Hotel Chocolat Group PLC (LON:HOTC) continues to outpace the high street, announcing another year of sweet sales that is funding expansion overseas.
The chocolate maker’s revenues rose 14% to £132.5mln in the year ending 30 June, with pre-tax profits up 11% to £14.1mln.
Angus Thirlwell, co-founder and chief executive, said group profits were “slightly ahead of expectations”, as new products such as in-home hot chocolate system, the Velvetiser, and the launch of a new loyalty scheme helped attract “over 900,000 active members” in the year.
Profits from existing shops improved faster than sales, thanks to increased efficiency and the benefits of scale, which allowed Hotel Chocolat to open two new shops each in the US and Japan, as well as 14 UK stores over the year to take its year-end total to 140.
Thirlwell said he was “confident” that the international expansion would “continue to develop well”, with a further five overseas openings planned for the next six months.
Shares in Hotel Chocolat were up 3% at 382 pence per share in early trading on Tuesday, having risen around 40% so far this year.
Analysts at Peel Hunt called the results “excellent”, highlighting both the “promising” early signs from Hotel Chocolat’s overseas launches, and its continuing strong trading form going into the new year.
Peel Hunt upgraded its forecasts by a further 7% for the group’s before-tax profits, and increased its price target to 410p.
--Edited to add Peel Hunt forecast