// Hotel Chocolat profits and revenue decline following a slow performance in international sales
// The retailer reported EBITDA of £22m for the 26 weeks to December 25, 2022, down from £33.8m
Hotel Chocolat profits and revenues have dropped in the first half following a slow performance in its international sales.
The confectionery retailer reported EBITDA of £22m for the 26 weeks to December 25, 2022, down from £33.8m, as well as a profit before tax more than halving to £10.2m for the period, down from £25.4m the previous year.
Hotel Chocolat’s group revenue dropped from £142.9m to £129.8m, while international sales were down 69%.
It also reported a 7% increase in like-for-like sales in the UK and posted a new record for its Christmas campaign sales with its “strongest ever sell-through of full-price seasonal products”.
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While not providing an exact number, Hotel Chocolat said online sales were lower year on year as customers preferred shopping in stores.
The retailer also said its wholesale revenue was lower than expected at the beginning of the year and as a result of “cautious inventory management by online partners”.
Founder and CEO Angus Thirlwell said: “This strong sales performance from Hotel Chocolat stores, underpinned by our scaled database, is a result of hefty investments we continue to make into our brand.
“Investing in more cacao and less sugar in our recipes, funding nature-positive cacao farming and championing British-made quality and design flair.
“Over the last three years, we have increased retail like-for-likes by 25% through product innovation and improving the quality of our database marketing.
“We have announced the opening of a further 50 UK locations over the next three to five years, with the first wave planned this autumn. Our new ‘store of the future’ design has succeeded against its objectives in test locations and so will be rolled out in these new locations: more space, Velvetiser cafes and constructed from reusable and sustainable materials.
“Our adapted plan for international growth – to pursue the proven brand appeal with low risk-low capex operating models – is making sound progress.”
