Yule logs and penguins book in profits for Hotel Chocolat

UPDATE

HOTEL Chocolat opened its first American store last week, near Grand Central Station in Manhattan. Last month, the company set up shop in a Tokyo shopping mall. And the group as a whole more than doubled profits last year as sales soared.

Benefiting from a strong online presence, a thriving portfolio of physical stores and a growing interest among consumers in quality treats at an affordable price, Hotel Chocolat seems to be doing everything right.

A new, make-your-own hot chocolate machine, the Velvetiser, has received rave reviews, the chocolate cream liqueur is a big hit with customers and assorted boxes, Yule logs and chocolate penguins are flying off the shelves.

Yet Hotel Chocolat shares have fallen from £4 in June to £2.78 today, another victim of investor nervousness in the current uncertain environment.

Midas first recommended the shares in December 2016, when they were £2.64 so they are up slightly since then. But the business has made much more progress.

Back then, revenues were £91 million and profits were £5.6million. In the 12 months to July 2019, brokers expect sales of £127 million and profits of £14 million.

Further strong growth is pencilled in for subsequent years, as chief executive Angus Thirlwell expands in the US and Japan, while continuing to drive sales here.