REG - Chill Brands Group - Trading Update

Chill BrandsAnnouncement

09/02/2026 07:00

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RNS Number : 2062S  Chill Brands Group PLC  09 February 2026

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION
11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.

 

 

9 February 2026

Chill Brands Group plc

("Chill Brands" or the "Company")

 

Trading update

 

Chill Brands Group Plc (LSE: CHLL), the consumer packaged-goods distribution
company, is pleased to provide an update on its current trading.

 

Highlights

·    Product sales revenue averaged over 55% month-on-month growth between
October 2025 and January 2026

·    Combined monthly revenues from product sales and service fees
materially higher than during the prior financial reporting period (being the
18 months ended 30 September 2025)

·    Strategic product range expansion into sundries, beverages and
confectionery underway

·    Chill.com domain asset independently appraised at in excess of its
acquisition cost

·    Leaner cost base following resolution of historical legal matters
with over £800,000 of exceptional costs and over £500,000 of operational
costs eliminated following exit from legacy US business

Chill Connect revenue growth

The Company's Chill Connect platform has demonstrated exceptional commercial
momentum since 30 September 2025. Between October 2025 and January 2026,
product sales revenue (excluding retainer and service fees) achieved an
average month-on-month growth rate in excess of 55%.

In addition to product sales, the Company generates service fee revenues from
clients who engage Chill Connect for brand representation and market access
services. Combined product sales and monthly service fee revenues have grown
materially, with over £150,000 of combined revenue generated in January 2026.
Monthly revenues will continue to fluctuate based on order timings and product
mix, with growth subject to the availability of capital resources to the
Company to fulfil demand. However the underlying market trajectory remains
strongly positive.

As a result, on a like-for-like basis, the four-month trading period from
October 2025 to January 2026 has generated revenues close to the total
achieved in the 18-month reporting period to 30 September 2025. When combined
with the exceptional income from the settlement reached with the Company's
former advisers announced in October 2025, the Company's total income for the
four-month period ended 31 January 2026 surpasses the prior 18-month total,
underlining the material acceleration in the Company's commercial momentum.

This sustained growth trajectory validates the Company's business model and
demonstrates strong market demand for the Chill Connect offering. The Board
believes this performance trend positions the business well for continued
expansion.

Market demand and strategic opportunities for Chill Connect

The UK convenience retail sector is experiencing significant structural
change. Independent convenience retailers are navigating increasingly complex
and fragmented markets, with product ranges expanding rapidly across multiple
categories. This complexity creates a clear market need for specialist
support, which Chill Connect is well positioned to address.

The Company's direct-to-convenience model has proven highly effective in this
changing environment. Chill Connect's national field sales team maintains
extensive retailer relationships across the UK and provides critical advisory
services to convenience operators seeking to optimise their product mix. For
Chill Connect's brand partners, the platform offers established market access
and launch support into the convenience channel, combining distribution
capability with on-the-ground expertise.

Revenue growth, coupled with customer enquiries, is now providing clear
evidence of the success of the Chill Connect model with demand regularly
running ahead of capacity. Revenue growth continues to be primarily
constrained by working capital availability rather than market opportunity.
Access to additional capital resources would enable the Company to carry
broader inventory ranges, fulfil larger orders and accelerate the capture of
commercial opportunities currently beyond immediate capacity.

Chill Connect product range expansion and market diversification

As part of its strategic evolution, the Company is actively expanding its
product range beyond the vaping and nicotine categories. The expansion roadmap
includes sundries, beverages, confectionery and other product lines relevant
to the convenience retail sector.

This diversification strategy creates significant commercial advantages. A
broader product range increases average transaction values, enhances customer
retention by becoming a more essential supplier partner and creates natural
cross-selling opportunities across the existing customer base. The wider the
product mix, the greater the operational efficiency and competitive
differentiation Chill Connect can achieve in serving the convenience channel.

Chill.com asset valuation

As part of its recent audit, the Company sought an independent professional
appraisal of its Chill.com domain name asset. The valuation indicated a fair
market value in excess of the original acquisition cost of USD 1.6 million.
Shareholders should note that this appraisal represents an indicative
valuation for accounting purposes only and may not necessarily reflect the
proceeds that could be realised in an actual market transaction.

While the Company's operational focus has evolved toward the Chill Connect
distribution platform, the domain remains a valuable strategic asset and a
material component of its balance sheet.

Operational efficiency and cost base

Following the completion of operational restructuring in 2025, the Company now
operates from a materially reduced cost base. The financial reporting period
ended 30 September 2025 included significant exceptional costs totalling over
£800,000 comprising extraordinary legal expenses, professional adviser fees,
and other one-off charges. These exceptional items will not recur in the
current year. Additionally, the board estimates that over £500,000 of
operational costs will be saved following the closure of legacy US operations.

The ongoing monthly operational expenditure (excluding cost of goods sold) has
been significantly reduced, with the primary overhead being personnel costs to
support the field sales operation. Management's priority remains revenue
growth and market penetration, with the leaner cost structure enabling revenue
growth to flow through with greater operational leverage even while
maintaining competitive pricing to support market share expansion.

The Company has maintained its operational liquidity comparable to the
position at 30 September 2025, supplemented by drawings from its convertible
loan note and inventory working capital facilities. As the business continues
to evolve, the Board is conducting a comprehensive review of the optimal
corporate and operational structure to ensure the Company remains optimally
positioned and resourced to support its growth ambitions and deliver
shareholder value.

Commenting on current trading conditions, Callum Sommerton, Chief Executive
Officer of Chill Brands, said:

"The Company's operational performance validates everything we've built with
Chill Connect so far. Significant month-on-month revenue growth resulting in
increasing monthly revenues since the beginning of the current financial year
demonstrate that our model works and that market demand is substantial. Our
field team is executing exceptionally well, retailers are responding
positively, and brands want to work with us.

"It is particularly encouraging that demand continues to run ahead of supply
and the opportunity ahead is clear. We have retailers asking for more product
lines and brands seeking our distribution reach. The market opportunity in
convenience retail is only growing larger, and we are determined to take it."

-ENDS-

 

Enquiries:

 Chill Brands Group plc                                  contact@chillbrandsgroup.com

+44 (0)20 4582 3500
 Harry Chathli, Chairman

 Callum Sommerton, CEO
 Allenby Capital Limited (Financial Adviser and Broker)  +44 (0) 20 3328 5656
 Nick Harriss/Nick Naylor (Corporate Finance)

Kelly Gardiner/Lauren Wright (Equity Sales)

About Chill Brands Group

Chill Brands Group plc (LSE: CHLL, OTCQB: CHBRF) is a distribution-led
consumer packaged goods company serving the UK convenience retail sector.
Through its Chill Connect platform, the Company operates a national field
sales team providing direct-to-store distribution and advisory services to
brands seeking to expand their distribution into the independent convenience
channel. The Company's product range spans vaping and nicotine alternatives,
with active expansion into sundries, beverages, confectionery, and other
fast-moving consumer goods. Chill Brands partners with established FMCG
businesses and emerging brands to provide comprehensive route-to-market
solutions. The Company also owns the premium Chill.com domain name.

Publication on website

A copy of this announcement is also available on the Group's website at
(http://www.chillbrandsgroup.com/) http://www.chillbrandsgroup.com
(http://www.chillbrandsgroup.com/)

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