Hotel Chocolat hails 'strong' year, revenue up 12%

British chocolatier Hotel Chocolat posted a jump in revenue on Wednesday and said its new range of chilled drinks have been a hit in the recent hot weather.

In a trading update for the 52 weeks to 1 July, the company said revenue rose 12% on the year to £116m, while pre-tax profit for the year is expected to be in line with market expectations.

During the year, the business opened 15 stores, contributing 6% to group year-on-year sales, added 200,000 new online buyers and developed a number of new products for the upcoming autumn-winter season.

Chief executive officer Angus Thirlwell said: "Hotel Chocolat has had another strong year. Whilst there has been considerable recent media coverage of retail generally, we are encouraged by the performance of both our new and existing locations. Customers are continuing to respond well to our luxury brand and lifestyle propositions. During the recent heatwave in the UK, our new Chilled Chocolat drinks, unique Chocs to Chill, Ice Cream of the Gods and improved Cocoa Beers have been very popular.

"The deep knowledge of our School of Chocolate-trained retail teams and our experiential Chocolate Lock-in sessions continue to underpin the allure of our multi-channel model."

The company said trading since FY18 has been in line with management's expectations.

Liberum said this trading update is "very strong in the context of the retail sector and there is no doubt that the strength of the brand, its balance sheet and cash flow profile all point to what us a sustainable growth model".

"In our the view, the group has made significant strides, laying a strong foundation for the future internationalisation of the brand. This may come sooner rather than later. We see a number of material catalysts over the medium to longer term and considering the 12% share price fall since May, this is an attractive entry point."

Liberum kept its 'buy' rating and 410 price target on the stock.

At 1025 BST, the shares were up 1.2% to 350p.