Hotel Chocolat revenues fall 10% in FY23

Hotel Chocolat has reported that revenue fell by 10% to £204.5m in the year ended 2 July, due to lower sales online and internationally. 

UK revenues also dropped by 8% year-on-year, which the group maintains is in line with market expectations. 

That said, the group did experience an 8% year-on-year uplift in store sales during FY23. 

According to Hotel Chocolat, FY23 had been “critical” in rebalancing the business post-pandemic, and had included the bulk of its efforts to reshape its cost base plan. 

As a result, the chocolate retailer sustained an underlying loss before tax of £800k, compared with a profit before tax of £21.7m in FY22. 

During the first quarter of FY24, Hotel Chocolat reported “significant” progress against its ‘shape of the future’ strategic priorities and saw UK store revenues rise by 14% year-on-year.

So far, it also opened four out of 12 planned stores, which are “outperforming expectations. In FY23, the group noted that it only opened one store. 

In addition, the group’s cost reductions are flowing into FY24 from restructuring activities carried out last fiscal year.

Angus Thirlwell, co-founder and CEO of Hotel Chocolat, 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.

“Our ongoing stores continue to perform strongly, benefitting from a raft of exciting new products, the resumption of in-store tasting and our unique Love March offer which reflects human individuality to closely match it across our Hotel Chocolat range. Trading in our railway station stores has rebounded as traveller numbers have increased.”