Chill Brands trading update: 55% month-on-month growth, leaner costs, and a busy pipeline
Chill Brands has served up a punchy trading update. The standout: product sales revenue grew by an average of more than 55% month-on-month between October 2025 and January 2026. January alone delivered over £150,000 in combined revenue from product sales and service fees. Layer in a leaner cost base and a growing category mix, and the operating picture looks materially stronger than it did during the prior 18-month period to 30 September 2025.
This momentum sits squarely with Chill Connect, the Company’s direct-to-convenience distribution platform. Demand is reportedly running ahead of capacity, with working capital – the cash tied up in stock and receivables – the main constraint. That is a quality problem, but a problem nonetheless.
Chill Connect momentum: what the numbers actually say
Between October 2025 and January 2026, product sales revenue (excluding retainers and service fees) grew at an average month-on-month rate above 55%. On top of that, Chill Brands earns service fees from brands that use Chill Connect for representation and market access. Put together, January 2026 generated more than £150,000 in revenue.
Management flags that monthly revenues will fluctuate with order timing and product mix, and growth depends on capital availability to fulfil demand. Even so, the Company says the four months to 31 January 2026 generated revenues close to the total booked in the 18 months to 30 September 2025. Including the exceptional income from the October 2025 settlement with former advisers, total income over the same four-month period surpassed that prior 18-month total.
| Metric | Detail |
|---|---|
| Average month-on-month product sales growth | In excess of 55% (Oct 2025 – Jan 2026) |
| January 2026 combined revenue | Over £150,000 (product sales + service fees) |
| Four-month revenue vs prior period | Revenues close to total for the 18 months to 30 Sep 2025 |
| Exceptional income (settlement) | Included in total income for Oct 2025 – Jan 2026 (amount not disclosed) |
| Exceptional costs removed | Over £800,000 (non-recurring legal and adviser costs) |
| Operational cost savings | Over £500,000 following exit from legacy US operations |
| Liquidity and facilities | Operational liquidity maintained vs 30 Sep 2025; drawings from convertible loan note and inventory working capital facilities |
| Chill.com valuation | Appraised above USD 1.6 million acquisition cost (indicative accounting valuation) |
Notes: service fees are monthly charges for brand representation and market access. A convertible loan note is debt that can convert into equity under certain conditions. Exceptional costs are one-off items that won’t recur in the current year.
Why the convenience channel is working for Chill
The UK convenience sector is getting more complex, with independent retailers juggling fast-changing ranges across multiple categories. Chill Connect’s model – a national field sales team doing direct-to-store distribution and advisory support – is built for this environment. Retailers get help optimising their product mix; brand partners get on-the-ground access and launch support into the independent channel.
Crucially, demand appears to be outpacing Chill’s current capacity. That supports the proposition’s real-world traction, not just a marketing slide. The bottleneck is working capital, not customer appetite.
Expanding beyond vaping: more lines, bigger baskets
Chill is widening its product universe beyond vaping and nicotine alternatives into sundries, beverages, confectionery and other relevant FMCG categories. This matters because a broader range can lift average order values, deepen retailer relationships, and create cross-selling opportunities across the existing customer base.
If executed well, a wider mix should also improve operational efficiency – more revenue per call, more lines per drop, and a stronger reason for retailers to keep the door open.
Costs down, operating leverage up
After 2025’s restructuring, the cost base is much leaner. The prior 18-month reporting period included more than £800,000 of exceptional legal and professional fees that will not recur this year. Exiting legacy US operations is expected to save over £500,000 in operational costs.
Ongoing operating expenditure, excluding cost of goods sold, is now primarily personnel to support the field sales team. In plain English: each extra pound of revenue should drop through more cleanly, helping operating leverage while still allowing competitive pricing to drive share gains.
Funding and working capital: the growth gatekeeper
Management is candid that growth is constrained by working capital. Access to additional capital would allow broader inventories, bigger orders, and faster capture of opportunities. The Company says operational liquidity is broadly comparable to 30 September 2025 and is being supplemented by drawings from its convertible loan note and inventory working capital facilities.
Investors should expect some lumpiness in monthly revenue as order timing and product mix shift around. The strategic direction is clear, but the pace will likely track the availability – and cost – of capital to stock more lines and serve more stores.
Chill.com appraisal: a supportive balance sheet asset
As part of its audit, Chill obtained an independent appraisal of the Chill.com domain at a fair value above the original USD 1.6 million acquisition cost. This is an accounting valuation and may not reflect actual sale proceeds, but it remains a material balance sheet asset while the operational focus centres on Chill Connect.
CEO commentary: demand outpacing supply
CEO Callum Sommerton highlights strong execution by the field team, positive retailer response, and growing interest from brands. The message is consistent: demand is running ahead of supply, with retailers asking for more product lines and brands seeking distribution reach in a growing convenience market.
My take: momentum is real, but capital will set the ceiling
What looks positive
- Momentum: average month-on-month product sales growth above 55% over four months is hard to ignore.
- Diversification: expansion into sundries, beverages and confectionery should lift average basket sizes and retention.
- Cost discipline: more than £800,000 of one-off costs removed and over £500,000 of ongoing savings support operating leverage.
- Evidence of fit: demand reportedly ahead of supply suggests the Chill Connect model resonates with both retailers and brands.
What to watch
- Scale: January’s revenue was over £150,000 – encouraging, but still early-stage in absolute terms.
- Working capital: growth is constrained by capital, with revenue volatility expected due to order timing and mix.
- Profit detail: margins and profitability metrics are not disclosed; the next set of results will matter.
- Corporate structure review: the Board is assessing the optimal setup to support growth; outcomes and timelines are not disclosed.
- Domain valuation: Chill.com’s appraisal is supportive but indicative only – it is not cash.
Bottom line
This is a credible, operationally focused update. Chill Brands is showing sharp revenue acceleration, a tighter cost base, and a strategy that fits the realities of UK convenience retail. The near-term governor on growth is working capital, not demand. If the Company can unlock additional capital efficiently, the current trajectory suggests more headroom ahead.
