// Hotel Chocolat warns that it will post a statutory loss for its 2022 financial year despite revenue exceeding expectations
// Revenue hit £226m in the 12-month period, up from £165m a year prior and ahead of market forecast
Hotel Chocolat has warned that it will post a statutory loss for its 2022 financial year despite revenue hitting £226m in the 12-month period, up from £165m a year prior and ahead of market forecasts.
Boss of the specialist chocolate retailer Angus Thirlwell said in a statement this morning that the company expects “temporary lower sales growth rate and profit margin” next year, as it braces for a spending slow down amid the cost of living crisis in the UK.
Given the current global macro-economic climate, the business will now be focusing on its proven and lowest-risk strategies that have the greatest potential for increased profitability.
The company said this will lead to lower sales growth in the short term, and some transitional costs leading to lower profits in FY23, as it looks ahead to higher profits thereafter.
Thirlwell said: “The Hotel Chocolat brand is achieving very strong growth in the UK, and we are pleased to have beaten sales expectations and expect to meet underlying profit expectations for FY22.
“The way the market has rapidly changed for all businesses in the second half certainly emphasises the resilience value of investments that we have made over the last 20 years: in building a differentiated brand with strong customer loyalty, a unique and desirable product range, and our own, dependable UK chocolate factory.”
Thirlwall added: “While we expect a temporary lower sales growth rate and profit margin for FY23 as we carry through our adjustments, the result will be a business delivering greater results, with less risk and an even stronger balance sheet with a higher profit percentage growth in FY24 and FY25.
“We have discovered that our UK market can be a lot bigger for us than we thought a year ago, thanks to the new drinkable chocolate products (Velvetiser & Velvetised Cream alcohol) and the way our digital and stores businesses are performing.”
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