(Alliance News) - Hotel Chocolat Group PLC on Tuesday reported a double-digit annual revenue increase and swing to profit as the lifting of Covid-19 trading restrictions in the UK from April allowed the retailer to capitalise on a multi-channel sales model.
Generated from retail, hospitality, direct-digital and digital wholesale trading, the Royston, Hertfordshire-based chocolatier's revenue grew 21% to GBP164.6 million in the financial year that ended June 27 from GBP136.3 million the year before.
It swung to a pretax profit of GBP7.8 million from a loss of GBP7.5 million.
Over 70% of the company's annual revenue was derived from digital, continuity products and partners. Particularly, its 'Velvetiser' in-home hot chocolate system gained popularity online and drove a high lifetime-value subscription-continuity model.
"This pleasing set of results primarily reflects the strong performance of the group's multichannel proposition and the group's fast-growing active customer database," Hotel Chocolat said.
The company opted not to pay a dividend given opportunities to invest for further growth, and plans to recommence payouts "when it is appropriate to do so".
"The group has entered FY22 in a strong position, with an increased active customer base, and with multiple clear avenues for further growth, spanning product ranges, channels and territories, all of which are delivering encouraging progress," Hotel Chocolat commented.
It added that trading has been in line with management expectations since the period end.
Looking ahead, Hotel Chocolat plans to focus on its UK to global evolution, branding itself as a "globally ambitious digital-led brand with a broad range of luxury cacao products". It so far has 27 stores trading through its Japan joint venture and has made its US business digital-first.
Hotel Chocolat shares were up 5.2% at 426.00 pence in London on Tuesday morning.
By Josie O'Brien; josieobrien@alliancenews.com
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