Hotel Chocolat expects to make loss in “transition year”
Hotel Chocolat is expecting to make a loss in the 2023 financial year, which it has described as a “transition year to re-shape the business”.
The chocolatier said that although “excellent progress” had been made on cost base efficiencies, they are materialising later in the year than previously anticipated.
As a result, Hotel Chocolat now expects to deliver an underlying loss before tax during the year, despite sales sitting within market expectations.
It added that cash generation was “healthy”, with cash at hand of £19m and zero debt.
Looking ahead, the chocolatier expects sales and underlying profit before tax to be lower than current market expectations due to “ongoing weakness in consumer sentiment” and inflationary pressures.
Earlier in the year, Hotel Chocolat announced ambitious plans to open 50 new stores in the UK after enjoying its strongest ever Christmas.