Hotel Chocolat serves sweet set of maiden results

AIM-listed luxury chocolatier Hotel Chocolat Group’s maiden revenue increased as it opened new stores and cafes and invested in improving production efficiency.

For the year ended 26 June, revenue increased 12% to £91.1m compared to the previous year, with digital revenue growing 20% ahead of a website relaunch in 2017.

Earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 57% to £12.3m, while cost controls meant that operating margins improved with pre-exceptional EBITDA margin rose from 9.7% to 13.5%.

Pre-tax profit rose 91% to £5.6m, which excludes exceptional costs of £2.6m when it floated in May and bought out Hotel Chocolat Estates Limited in Saint Lucia.

During the year seven new Hotel Chocolate stores were opened, including in Regent Street and Tottenham Court Road in London, to take the total to 83 and a fifth shop-and-cafe format opened in Worcester, while closing three stores that had reached the end of their leases.

The company, which spent £4.7m on factory improvements and has further investments planned for summer 2017, is also refitting a shop and cafe in Copenhagen is expecting a franchise store to open soon in Gibraltar.

Angus Thirlwell, co-founder and chief executive, said: "Our results are strong, the Hotel Chocolat brand has continued to strengthen and we have made good progress with our three strategic priorities of investing further in our British chocolate manufacturing operations, growing our store estate and developing our digital offering."

"Our plans for the peak winter season are well set and I am confident that our Christmas ranges will be our best ever, as customers continue to appreciate our ‘more cocoa, less sugar’ approach throughout all our categories."

Shares in Hotel Chocolat were up 5.49% to 240p at 0840 BST.