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Hotel Chocolat has announced that it anticipates to deliver an underlying marginal loss before tax for FY23, despite cash generation remaining healthy, with cash-at-hand of £19m and zero debt.
The direct-to-consumer chocolate brand’s trading update comes after a previous announcement, which outlined that the current financial year is a “transition” year for the group to re-shape the business “in readiness for its next stage of growth”.
According to the group, while progress has been achieved on cost base efficiencies, they are reportedly “materialising later in the year than initially anticipated”.
For FY24, the group expects sales and underlying profit before tax to be lower than current market expectations due to ongoing weakness in consumer sentiment and continuing inflationary pressures.
Meanwhile, for FY25, the board clarified 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 group is unusual in being a grower of organic cacao in Saint Lucia, a manufacturer in Cambridgeshire, and owner of its extensive direct to consumer channels in the form of branded stores and websites.
