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The Markets
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The Markets
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Food & drink

Hotel Chocolat sales rise as hot drinks are a hit

The chocolatier continues to expand both in the UK and internationally, receiving "encouraging" response

Hotel Chocolat Group PLC’s (LON:HOTC) Velvetiser hot chocolate maker kept sales bounding ahead in its latest six months.

The posh chocolatier has been selling the ‘Velvetiser’ as a loss-leader but expects a long-term return as customers come back for the refills.

Sales of the drinks maker climbed 200% and a range of new flavours have been introduced including Tasmanian Mint, Habanero Chilli, and Maple & Pecan

Revenue overall rose 14% to £91mln in the six months to December with profit before tax up 7% to £15mln while there was a boost from soaring membership of its VIP scheme, which now tops 1.1mln members.

READ: Hotel Chocolat to boost international expansion in 2020

The AIM-listed group continued to expand both in the UK and internationally in the half-year, with nine new locations at home, two in the US and three in Japan.

Management said the performance of the recent additions is “encouraging” and there is a “future pipeline” of similar potential locations.

Cash in the bank was 9% higher at £24mln but the interim dividend was held flat at 0.6p per share.

Shares jumped 9% to 420.5p on Tuesday at the opening bell.

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