// Hotel Chocolat expects sales for its 2023 financial year to be slightly lower than market expectations and that underlying pre-tax profit will be breakeven
// It said “excellent progress” was made on cost-base efficiencies and that it’s now expecting to see a return to sales and EBITDA growth by 2025
Hotel Chocolat said it now expects sales to be slightly lower than market expectations and underlying profit before tax to break even in the 2023 financial year.
After a transitional year during which the company focused on re-shaping the business for future growth, the specialist retailer‘s second-half trading to 23 April achieved high seasonal full-price sell-through, although sales across all channels over the Easter period were lower than expected.
Digital and wholesale channels had lower revenues than initially planned following a focus on “quality of earnings.”
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It added that “excellent progress” has been made on cost-base efficiencies and as a result, it is expecting to see a return to sales and EBITDA growth by 2025.
More UK stores are in the works for next year, along with new products and launches appearing from mid-summer.
Hotel Chocolat founder and chief executive Angus Thirlwell said: “During this financial year, Hotel Chocolat has taken effective action to overcome the growing pains of rapid growth and scaling £200 million in revenues. We are now well set up for the next stage of growth both in the UK and overseas key markets. Getting through these barriers to growth are a real test of culture and, I am unceasingly impressed by the strength of the Hotel Chocolat culture, as we remodelled our way through FY23.
“Our manufacturing and distribution is well invested now, with suitable headroom, liberating capital for future revenue growth. We can see more than 50 new locations for a Hotel Chocolat latest format store in the UK over the next few years and our adapted approach to international major markets is making sound progress.”
“We are very grateful to our growing base of loyal and new customers, who are signalling that ethical and higher-cacao premium chocolate is definitely worth it.”
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