If it’s true the world over that when people are upset, they reach for the chocolate, then perhaps we shouldn't be too concerned with how well Hotel Chocolat (HOTC) is doing, even though it's trading in an increasingly competitive environment. In the event, the chocolatier’s results for the year to June came in ahead of expectations thanks to strong growth in domestic markets, but it is the growth of new products, initiatives and markets that have attracted our attention.
The group continued its international expansion, with new locations in both Japan and the US, and another handful of openings expected by spring of next year. Management said trading in both countries is in line with expectations, but remains “sub-scale”, with losses from the US business suppressing group profits. Conversely, demand in the core UK division has remained strong, justifying the expansion of the group's domestic footprint by 14 stores.
Broker Peel Hunt is forecasting adjusted EPS of 10.3p for 2020, up from 9.5p this year.
HOTEL CHOCOLAT (HOTC) | ||||
ORD PRICE: | 381p | MARKET VALUE: | £429m | |
TOUCH: | 377-384p | 12-MONTH HIGH: | 385p | LOW: 253p |
DIVIDEND YIELD: | 0.5% | PE RATIO: | 39 | |
NET ASSET VALUE: | 44p | NET CASH: | £5.8m |
Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
2015 | 81 | 2.9 | na | nil |
2016 | 91 | 5.6 | 3.9 | nil |
2017 | 105 | 11.2 | 7.8 | 1.6 |
2018 | 116 | 12.7 | 8.8 | 1.7 |
2019 | 132 | 14.1 | 9.7 | 1.8 |
% change | +14 | +11 | +10 | +6 |
Ex-div: | 21 Nov | |||
Payment: | 20 Dec | |||