// Hotel Chocolat expects a dip in its profit for 2023 as a result of base efficiencies materialising later than expected
// Its sales remain in line with market expectations, while the retailer also has cash at hand of £19m and zero debt
Hotel Chocolat expects its profit before tax and sales to fall below market expectations for next year, as a result of ongoing weakness in consumer sentiment and inflationary pressures.
The business is anticipating revenue of £201.8m and underlying profit before tax of £0.3m for the 2023 financial year.
Sales remain in line with market expectations, while the business also has cash at hand of £19m and zero debt.
The news comes as the retailer aims to re-shape its business to prepare for its next stage of growth.
For 2025, it aims to achieve 20% pre-IFRS EDITDA towards the end of the year.
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Hotel Chocolat said: “As previously announced, the 2023 financial year is a transition year to reshape the business in readiness for its next stage of growth. While excellent progress has been achieved on cost base efficiencies, they are materialising later in the year than initially anticipated.
“Cash generation remains healthy with cash at hand of £19 million and zero debt. For the 2024 financial year, the group expects sales and underlying profit before tax to be lower than current market expectations due to ongoing weakness in consumer sentiment and continuing inflationary pressures.”
Back in March, Hotel Chocolat had a drop in profits and sales during the first half, as international demand slowed down.
The retailer reported EDITDA of £22m for the 26 weeks to December 25, 2022, down from £33.8m.
Its profit before tax also more than halved to £10.2m for the period, down from £25.4m the previous year.
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