18 January 2022
HOTEL CHOCOLAT GROUP PLC
("Hotel Chocolat", the "Company" or the "Group")
Trading Update
Hotel Chocolat Group plc, a premium British chocolatier and omni-channel retailer, today announces a trading update for the 13-week period ("Q2") and the 26-week period ("H1") ended 26 December 2021.
Total Group revenue for Q2 increased 37% compared to the prior year, and by 63% cent compared to the equivalent period in FY20.
Total Group revenue for H1 has been strong, increasing 40% compared to the prior year, and by 56% compared to the equivalent period in the financial year ended 28 June 2020 ("FY20"), the last equivalent period prior to the impact of Covid-19:
| ● | In the UK, the strong brand position and multichannel model enabled growth of 38%. New customer acquisition campaigns resulted in 38% more active customers. |
| ● | In the USA, the digital-led strategy delivered growth of 128%, with active customer database growth of 119%. |
| ● | In Japan, our multi-channel joint venture achieved growth of 131%. Since launching the VIP loyalty scheme 14 months ago, the database has grown by 1000% to over 100,000 active customers. |
Outlook
Trading throughout the period has been encouraging and the Board now expects trading to be marginally ahead of management's expectations for the current financial year.
Notice of Results
The Board expects to announce the Group's results for the six months ended 26 December 2021 on 2 March 2022.
Angus Thirlwell, Co-Founder and Chief Executive Officer, said:
"These results demonstrate that the Hotel Chocolat brand is connecting with more customers, as we invest continually in new product creativity, driving growth across channels and categories, and in our 'gentle farming' initiative supporting cacao-farming families.
"All of our six growth drivers are behind the acceleration in sales: Velvetiser in-home drinks system, VIP Loyalty rewards, and Digital, whilst the USA, Global Wholesale, and the Japan joint venture are finding the formula for sustained growth, and our UK domestic market still has huge potential.
"Our Velvetiser in-home drinks system was a star performer during the period. The majority of our subscription customers are now coming from our popular hot chocolate and coffee machines and drinks. We invested in refreshing our key chocolate gift ranges in the period and that resulted in an immediate and strong uplift in sales, particularly the higher price-point categories.
"We are incredibly grateful to both our new and long-established direct customers who support us and there's been an exceptional team effort from the worldwide Hotel Chocolat family, who made these results happen, whilst always upholding our Hotel Chocolat values."
The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.
Enquiries:
| Hotel Chocolat Group PLC | Tel: +44 (0) 1763 257 746 |
| Angus Thirlwell, Co-Founder and CEO Peter Harris, Co-Founder and Development Director Matt Pritchard, CFO | |
| Liberum (Nominated Adviser and Sole Broker) | Tel: +44 (0) 20 3100 2000 |
| Clayton Bush James Greenwood | |
| Citigate Dewe Rogerson | Tel: + 44 (0) 20 7638 9571 |
| Angharad Couch Ellen Wilton Alex Winch | |
Notes to Editors:
Hotel Chocolat is a premium British chocolatier with a strong and distinctive brand. The business was founded in 1993 by Angus Thirlwell and Peter Harris and has traded under the Hotel Chocolat brand since 2003. The Group sells its products online and through a network of locations in the UK, Japan and USA. The Group has an organic cacao farm, hotel and 6-acre visitor attraction in Saint Lucia, offering a complete brand immersion, as well as a chocolate factory in Cambridgeshire, UK. The Group was admitted to trading on AIM in 2016.
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