Hotel Chocolat Group PLC (LON:HOTC) said it will accelerate its international expansion in 2020.
The premium chocolate retailer is shifting from a UK-based business to an international supplier.
The AIM-listed firm said operations in the US and Japan, where it has four and five locations respectively, are delivering an “encouraging” performance.
In the first half, nine new locations were added to the UK estate, now 125-strong. It is also present in Scandinavian countries.
Three further locations are planned to open in Japan ahead of the Spring peak period, as announced in September’s preliminary results.
The growth came with extra costs due to “inefficiencies in the supply chain” that will be addressed this year, the company said.
Analysts at house broker Liberum said the expansion led to some inefficiencies over peak trading, requiring additional capacity in warehouses.
“We remain very bullish on the prospects for the brand and its global ambitions,” they commented in a note.
Total group revenue rose 11% in the 13 weeks to 29 December, in line with expectations, while first-half revenue was up 14%.
Analysts said it was due to a “strong” first quarter driven by the launch of drinks and ices, and benefitted of colder weather compared to summer 2018.
Shares were up 2% to 435p on Thursday at the opening bell but dropped 1% to 422p in mid-morning.
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