Hotel Chocolat Group (HOTC ) said its results for the 52 weeks to 27 June 2021 demonstrate how the firm has evolved from “a UK store-led brand to a globally ambitious digital-led brand.”
The British chocolatier saw revenues increase by 21% to £164.6m from £136.3m in FY20 with 70% of this revenue in the year generated through digital, partners and continuity products.
The Group, which also reported £10.1m in profit before tax and exceptional costs, up from £2.4m in FY20 and ahead of market expectations, said its set of results reflects the strong performance of its multichannel proposition and of its fast-growing active customer database.
Angus Thirlwell, Co-founder and CEO of Hotel Chocolat commented, “FY21 was a year where Hotel Chocolat improved on many fronts. Our digital and subscription-continuity models surged ahead and our global aspirations racked up more strong growth and progress.”
The Group said it maintained robust financial discipline through the reporting period with a strong focus on cash, liquidity and cost control. As a result, Hotel Chocolat finished FY21 with a balance sheet holding net cash of £15.8m as at 26 September and with £45.8m headroom.
In July 2021 the Group completed a new £30m working capital RCF with Lloyds Bank to replace an existing £25m CLBIL’s RCF which was never drawn. The Group also raised £40m of new equity to fund investment in growth channels, technology and manufacturing capacity.
Thirwell said the challenges of COVID-19 had pushed the Company to accelerate many of its existing plans and strategic initiatives which, in turn, has strengthened its financial position, improved its multichannel capability, and deepened its customer engagement and loyalty.
In addition, Thirwell said it has accelerated the rate of product innovation, whilst continuing to make good progress in the Company’s two new and sizable markets of the USA and Japan.
In FY21, the Company achieved overall sales growth of 36% in the US, despite store sales falling 41% while Japan, its JV partner, opened a further 16 stores, bringing the total to 22.
Given the opportunities to invest for further growth, the Board has determined that it would not be appropriate to declare a dividend for the Period and that it will continue to review the financial position of the Group and recommence dividend payments ‘when it is appropriate.’
Since the period end, the Company has traded in line with the Board’s expectations.
Looking ahead, the Group said it has entered FY22 in ‘a strong position, with an increased active customer base, and with multiple clear avenues for further growth, spanning product ranges, channels and territories, all of which are delivering encouraging progress.’
“I am confident that the strategic progress we have achieved over the past year has improved the performance and prospects of the business for significant years to come,” said Thirwell.
Addressing shareholders, the Company said: “the Board remains confident in the Group’s ability to continue to adapt and react swiftly to what will remain dynamic trading conditions over the coming months and to continue to deliver the brand’s exciting, long-term growth.”
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