19th Jan 2021 10:21
(Alliance News) - Hotel Chocolat Group PLC said Tuesday it was able to deliver "strong" sales growth in the final months of 2020.
Co-Founder & Chief Executive Angus Thirlwell said: "The strength of the brand and our ability to flex our multichannel model meant that despite the challenging environment every business and every family has faced, we were able to keep on delivering 'chocolat' happiness, launch new products and deliver strong sales growth."
Total revenue for the 13-week period to December 27 increased 19% year on year, while total revenue in the 26-week period grew 11% year on year.
"In the UK, the Hotel Chocolat brand flexed its multichannel model to respond to the strong demand from its loyal, direct customer base. Online growth more than offset the impact of the temporary closures of physical retail due to Covid restrictions," the chocolate maker and retailer said.
In the US, the company said, it was able to "adapt rapidly and pivot the multichannel business model". As a result it was able to record 19% revenue growth in the 13-week period and 8% growth in the 26-week period.
Meanwhile in Japan, Hotel Chocolat opened a further 12 outlets during the half year- meaning its joint venture is now operating from 18 locations in the country.
Trading since December continues to be in line with management's expectations, Hotel Chocolat said, despite "materially" higher investments in the acceleration of its digital and international growth plan, and ongoing pandemic-related response costs.
"The growth momentum stepped up in Japan and the US, and we have seen that it's underpinned by what the Hotel Chocolat brand brings that is differentiated and exciting to these mega markets. Encouragingly, we have also made significant progress in the period in building an operational platform for future growth," Thirlwell continued.
He added: "We accelerated several of our digital growth initiatives over the last year and can clearly see the huge potential ahead. Whilst there is still further near-term pandemic-related uncertainty, and ongoing increased costs in reacting to it, I am increasingly confident that in the medium-term we can deliver significant further growth in the UK, US and Japan."
Shares in Hotel Chocolat were 1.8% higher in London on Tuesday at 376.50 pence each.
By Paul McGowan; [email protected]
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