Hotel Chocolat Group plc has released a post-close trading update for the 52 weeks ended 27 June 2021. It has achieved revenue of £165 million for the year with group sales for the final 10 weeks up by 34 per cent over those achieved for the same, comparable period in 2019.
It had grown its UK customer database by 66 per cent to 3 million in the 18 months since December 2019, with digital and subscription sales now a substantially larger proportion of the Group’s total revenue and which have remained so after full store channel reopening. Increases in visits, conversion, and average order value have combined to substantially increase customer lifetime value (LTV).
In the USA, product sales increased by 62 per cent on the prior year with over 75 per cent of sales achieved directly through the Group’s US website. In Japan, the Group’s joint-venture partnership grew sales by 277 per cent on the prior year, achieving over 50 per cent data capture from new customers.
UK store performance since the reopening on 12 April has been encouraging. Strong trading in smaller cities and market towns has largely offset lower footfall in commuter and tourist locations. Following the end of the first lockdown in July 2020, sales from stores progressively increased from July to October and the Board anticipates a similar improvement in the coming months. 30 per cent of the UK store estate has been renegotiated to lower rents, either in the form of a lower fixed amount, or a reduced variable per cent of sales. The remaining 70 per cent of the estate has a lease event due in the next 24 months. Having raised £22million of new equity in March 2020, the Group has invested the capital in service for future growth in digital, production capacity, and new lines together with expansion of its UK distribution centre. The Group has committed to repay the full amount of furlough support received in the financial year (£3.1m).
Angus Thirlwell, Co-Founder and Chief Executive Officer of Hotel Chocolat, said: “I am fortunate to be able to say that the growth avenues ahead of us have never been better in Hotel Chocolat’s history. The strategies we put in place two years ago are now delivering accelerated growth. Our Velvetiser in-home drinks system, our VIP and digital programmes, and our USA and Japanese joint-venture start-ups have step-changed our growth potential.
“Our goal of becoming the most tech-activated chocolate brand is moving forward in leaps and bounds and is already helping to power our major achievements and future growth. Indeed, this year we expect more than 50 per cent of our sales to come from digital, partners, and subscription-continuity models, reflecting how Hotel Chocolat is growing and evolving. Our brand-building stores will continue to play a pivotal role in our digital-led business, with an unrivalled ability to introduce new customers to our brand.
“I am particularly excited by what we have achieved so far in the USA and Japan, two of the three largest economies in the world. We have great growth opportunities there for Hotel Chocolat and strong teams in place to drive and support it.
“We are proud to be making our chocolate in the UK and will be creating over 250 new roles this year as we grow our team, from designers and data gurus to engineers and apprentices.
“Passion Fruit & Mango Cacao Gin is proving a real hit this summer, as is new Peanut Butter drinking chocolate, Ice Cream of the Gods and our fabulous new range of coffee beans and pods, complete with an in-home pod recycler.
“The whole Hotel Chocolat family is very grateful for the support from our customers, and we are determined to drive forward our ethical programmes in the communities we work within and our cocoa growers as well as our environmental targets and initiatives.”
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