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Highlights
- On 18 January 2022, Hotel Chocolat Group announced a revenue increase and raises its guidance for 2022.
- As compared to the prior year, total revenue of the group has gone up by 37% in Q2 and 40% in H1.
Premium British chocolatier Hotel Chocolat Group plc (LON: HOTC) has attracted the attention of investors as it has announced an increase in its revenues and has raised its guidance for 2022.
Let’s analyse the performance of the omni-channel retailer and figure out if it’s a good buy.
Latest Trading Update
On 18 January 2022, Hotel Chocolat Group released its trading update for the second quarter and first half of the year, ended 26 December 2021. For the 13-week period (Q2), the total revenue of the group went up by 37% year-on-year, and up by 64% as compared to the same period in 2020, which was before the pandemic.
While for the 26-week period (H1), the total revenue of the group went up by 40% year-on year, and up by 56% as compared to the same period in 2020, which was the financial year ended 28 June 2020 when the group’s business wasn’t impacted by the pandemic.
In the UK, the active customer base of the group has grown by 38% along with the same rate of growth enabled by its multichannel model. The brand position of the group has been enhanced in the UK, as well as in the US, where the active customer database has grown by 119% and the overall business growth led by its digital strategy has been 128%.
Additionally, the group has witnessed tremendous growth in the Japanese market, where the multi-channel joint venture has grown by 131% and the number of active customers has gone up by 1000% crossing 100,000 since the VIP loyalty scheme was launched over a year ago.
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Share price performance and outlook
Hotel Chocolat Group, which is engaged in manufacturing and distributing chocolates across the globe, is listed on the Alternative Investment Market (AIM) of the London Stock Exchange. The group is a part of the FTSE AIM 100 Index.
The current market cap of the group stands at £720.37 million, and it has provided a return of 40.96% to its shareholders in the last one year, while its year-to-date return stands at 3.89% as of 19 January 2022. Hotel Chocolat Group plc’s (LON: HOTC) shares were trading at GBX 525.00 at 8:50 AM (GMT) on 19 January 2022.
The Board of Hotel Chocolat Group has raised its guidance for the current financial year, and based on the recent strong results, the group anticipates trading to be slightly ahead of expectations.
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Bottomline
According to the group’s CEO Angus Thirlwell, the recent results have been promising as the revenues and customer base of Hotel Chocolat have been continuously growing. Based on the performance and outlook of the group, Hotel Chocolat shares are a good buy for 2022.
