Hotel Chocolat Group PLC (LON:HOTC) said its full-year profits are expected to be “higher than previous expectations” after reporting that its trading had remained strong since May.
In a trading update for the year to June 27, the chocolate retailer reported that revenues for the year were £165mln, a 21% increase year-on-year (YOY) and a 24% rise on 2019, the last full year before the pandemic.
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The firm highlighted that sales for the 10 weeks from April 19 to June 27 were up 34% compared with the same period in 2019, and 63% compared with a year ago when all of its physical locations were shut during lockdown.
Hotel Chocolat also reported that its UK customer base had grown by 66% to 3mln in the 18 months since December 2019, with digital and subscription sales now a “substantially larger proportion” of its total revenue.
In the US, meanwhile, the group reported that product sales had increased 62% YOY, while in Japan the firm’s joint venture had grown sales by 277%.
The company also said that since reopening on April 12 the performance of its UK stores has been “encouraging”, with strong trading in smaller cities and market towns offsetting lower footfall in commuter areas and tourist locations.
Looking ahead, Hotel Chocolat said it expects sales from its stores to improve in the coming months, adding that it is also planning to repay all furlough support it received during the pandemic, a total of £3.1mln, as well as hire over 250 new roles in its UK business.
"I am fortunate to be able to say that the growth avenues ahead of us have never been better in Hotel Chocolat's history. The strategies we put in place two years ago are now delivering accelerated growth. Our Velvetiser in-home drinks system, our VIP and digital programmes, and our USA and Japanese joint-venture start-ups have step-changed our growth potential,” Hotel Chocolat co-founder and chief executive Angus Thirlwell said in a statement.
"Our goal of becoming the most tech-activated chocolate brand is moving forward in leaps and bounds and is already helping to power our major achievements and future growth. Indeed, this year we expect more than 50% of our sales to come from digital, partners, and subscription-continuity models, reflecting how Hotel Chocolat is growing and evolving. Our brand-building stores will continue to play a pivotal role in our digital-led business, with an unrivalled ability to introduce new customers to our brand,” the CEO added.