Hotel Chocolat revenues rise but so do costs

Premium chocolatier Hotel Chocolat reported a rise in revenues on Thursday, alongside an increase in costs.

In the 13 weeks to 29 December, total group revenue jumped 11%, while in the 26 weeks to the same date, revenues were 14% higher.

Co-founder and chief executive Angus Thirlwell said this was "another strong performance" from the company.

"In our domestic UK market, we grew our VIP-Me member base to over 1.1m active members, as well as driving strong organic growth from our existing physical locations. We will continue to bring Hotel Chocolat to more locations in the UK where the deals are appropriate.

"The USA and our joint venture in Japan are both delivering an encouraging performance, growing to four and five locations respectively by the end of period. While much of 2019 was about getting started in these large new markets, 2020 will see us accelerate our supply-chain transformation. This focus will rebalance us from being a UK-based company operating from owned channels, to one more suitable for multi-channel multi-territory international supply."

Hotel Chocolat said that trading in the 13-week period and since December continues to be in line with management's expectations. However, the cost to deliver growth was "modestly higher" due to inefficiencies in the supply chain which are being addressed this year.

At 1220 GMT, the shares were down 3.9% at 410.75p.