23 Jun 2023 07:00
23 June 2023
Hotel Chocolat Group plc
("Hotel Chocolat", the "Company" or the "Group")
Trading Statement
Hotel Chocolat Group plc, a direct-to-consumer premium chocolate brand, today updates on recent trading.
As previously announced, FY23 is a transition year to re-shape 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.
As a result, although sales are in line with market expectations, the Group now expects to deliver an underlying marginal loss before tax for FY23*. Cash generation remains healthy with cash at hand of £19m and zero debt.
For FY24, the Group expects sales and underlying PBT to be lower than current market expectations due to ongoing weakness in consumer sentiment and continuing inflationary pressures.
For FY25, the Board clarifies its guidance for the target of 20% pre-IFRS EBITDA to be achieved towards the end of the year, with the full benefits being achieved through FY26.
* The Company believes that current market expectations for FY23 are revenues of £201.8m and underlying profit before tax of £0.3m.
The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. The person responsible for arranging for the release of this announcement on behalf of the Company is Angus Thirlwell, Chief Executive Officer
For further information:
Hotel Chocolat Group plc | c/o Citigate | + 44 (0) 20 7638 9571 |
Angus Thirlwell, Chief Executive Officer |
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Jon Akehurst, Chief Financial Officer |
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Liberum Capital Limited - Nominated Advisor and Broker | + 44 (0) 20 3100 2222 |
Clayton Bush |
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Ed Thomas |
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Miquela Bezuidenhoudt |
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Citigate Dewe Rogerson - Financial PR | + 44 (0) 20 7638 9571 |
Angharad Couch | |
Ellen Wilton | |
Alex Winch |
Notes to Editors
Hotel Chocolat is a premium British chocolate maker with a strong and distinctive D2C brand. The business was founded by Angus Thirlwell and Peter Harris, who are still executives within the business, and has traded under the Hotel Chocolat brand since 2003. The Group is unusual in being a grower (organic cacao farm in Saint Lucia), a manufacturer (Cambridgeshire) and owning its extensive direct to consumer channels (branded stores, websites). The Group was admitted to trading on AIM in 2016.