Hotel Chocolat Group PLC (AIM:HOTC) delighted investors with a strong set of full-year results, including a four-fold jump in profits that topped market expectations.
The retailer has been trading in line with forecasts during the summer months, though it didn’t report on any supply chain issues or labour shortages as other high street companies have had.
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In the 52 weeks ended 27 June, revenue surged 21% to £164mln, 70% of which came from digital, partners and subscription products, offsetting six months of store closures. Profit before tax rose to £10mln from £2.4mln the year before.
Cash in the bank was £15.8mln at 26 September, with £45.8mln headroom after a £40mln equity placing in July.
The AIM-listed group launched the Hotel Chocolat Gentle Farming Charter, an investment in cacao farming to help its suppliers earning a 'living income' by increasing the price paid for cacao to reflect local costs of living.
In return farmers must commit to sustainable farming practices, zero deforestation and zero illegal child labour, the firm said.
“From a UK centric brand five years ago to one with global ambitions, the last year has seen the group raise fresh capital to set these foundations in place,” analysts at house broker Liberum noted.
“Financial year 2022 has had a cracking start and the group has yet to start its Velvetiser push - a first time TV campaign - and with the reopening of stores this year proving to be strong, the second quarter could be very strong considering the comps and disruptions caused by COVID last year.”
Shares rose 5% to 425p on Tuesday morning.