Hotel Chocolat warns sales to be lower than expected in FY23
Digital and wholesale channels too had lower revenues than initially planned following a focus on ‘quality of earnings’
Hotel Chocolat has reported that it expects sales in FY23 to be slightly lower than market expectations and that underlying PBT will be breakeven, according to its new trading statement and update on its strategic progress.
It said that second half trading to 23 April achieved high seasonal full price sell through, although sales over the Easter period were lower than expected due to some range gaps.
Digital and wholesale channels also had lower revenues than initially planned following a focus on “quality of earnings”.
Hotel Chocolat said that following its previously announced “transitional year” to re-shape business in readiness for the next stage of growth from FY24 onwards, the board reconfirmed its guidance of expecting to see a return to sales and EBITDA growth with a re-iterated target of 20% EBITDA margin by FY25.
Additionally, it also plans to open four new UK stores in FY24 and introduce a new product pipeline with market launches beginning in mid-summer.
Angus Thirlwell, co-founder and chief executive officer of Hotel Chocolat, said: “During this financial year, Hotel Chocolat has taken effective action to overcome the growing pains of rapid growth and scaling £200m 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.”
