(Alliance News) - Hotel Chocolat Group PLC on Thursday reported weaker annual revenue, but looked to the future with confidence as focus turns to the key Christmas trading period.
Shares in the company were 5.7% higher at 137.40 pence each in London on Thursday morning.
The Hertfordshire, England-based chocolate maker said revenue for the financial year ended June 30 fell 9.6% to GBP204.5 million from GBP226.1 million the year prior. The outcome was in line with market expectations.
Its pretax loss narrowed to GBP6.9 million from GBP8.7 million. Operating expenses were 13% lower at GBP101.2 million from GBP116.4 million.
"FY23 has been a critical year for the business in which we have seen a rebalancing of pandemic driven ecommerce sales, a reset of our international business and the initial benefits of the significant work to reshape our cost base," the firm explained.
Trading in the new financial year has been promising. UK store revenue in the first quarter rose 14% year-on-year.
Chief Executive Officer Angus Thirlwell said: "Hotel Chocolat is on the front foot again. The hard, foundational work we put in last year is now starting to deliver the results for us. Our new store format is trading well above our expectations, with 12 new locations planned to open in the next year. Four of them are open already and they are located across the UK from Glasgow to Bournemouth."
Looking ahead, the company said it has an "exciting future both in the UK and internationally".
Hotel Chocolat added: "Despite the existence of external macro-economic challenges including inflationary pressures and the cost-of-living crisis, the Hotel Chocolat team has continually proven the ability to adapt to changing circumstances.
"The group is entering its key FY24 Christmas trading season in a strong position with good liquidity due to improved cash balances and lower working capital."
With Christmas still to come, Hotel Chocolat said it was too soon to give guidance for the new financial year.
By Eric Cunha, Alliance News news editor
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