Hotel Chocolat updates on trading and strategic progress
In a trading statement and update on its strategic progress, Hotel Chocolat has said it expects sales for its 2023 financial year to be slightly lower than market expectations and that underlying pre-tax profit will be breakeven.
The retailer has been working to re-shape its business during the last year in readiness for next stage of growth in the new financial year. It said 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. Meanwhile digital and wholesale channels had lower revenues than initially planned following a focus on “quality of earnings”.
Due the “excellent” progress made with cost base efficiencies over the last year, Hotel Chocolat has reconfirmed that it is expecting to see a return to sales and EBITDA growth by its 2025 financial year.
Angus Thirlwell, co-founder and chief executive of Hotel Chocolat, 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.”
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