|  Updated: 

Hotel Chocolat’s profits surge following brand appeal increase in key markets

By:

Add as a preferred source on Google
The cost of Easter eggs could increase again as bad harvests continue to dent global cocoa supplies, sending prices to a new all-time high.
Cocoa shipments were down from Ivory Coast by almost a third between October and March compared to the same period the year prior.

Chocolate brand Hotel Chocolat has registered a surge in profits following a brand appeal increase in key markets like the UK, Japan and the US.

In the 26 weeks ended 26 December, the group’s profit before tax was up 56 per cent to £24.1m, while the underlying EBITDA grew 35 per cent, from £24.9m to £33.8m.

Hotel Chocolat’s revenue rose 40 per cent, bringing with it a strong balance sheet with a £53.8m net cash.

“I am delighted that we have achieved a great set of results both in terms of sales and profits, indicating the global strength of the Hotel Chocolat brand and our direct-to-consumer business model,” said chief executive Angus Thirlwell.

In key markets such as the UK, Hotel Chocolat reported a 38 per cent increase in active customer database, while in the US customer numbers surged by 119 per cent following the boom of Velvetiser drinks. Japan’s consumer sales also skyrocketed, growing by 131 per cent.

“The last two years have been a period of very significant change both globally and within the business as we have evolved from a UK store-led brand to a globally ambitious digital-led brand with a broad-range of luxury cacao products,” he added.

“Since the end of the financial reporting period, trading has continued to be in line with the board’s expectations. The multi-channel performance of the UK remains encouraging, and the new markets continue to show promising potential for growth and profitability.”

The interim results come on the same day Hotel Chocolat announced it was steering away from its long-tenure auditor BDO LLP and switching to RSM UK Audit. The group cited “best practice on corporate governance” and BDO LLP’s 10-year tenure as the reason fro the change.