Hotel Chocolat cools expectations as Easter sales ‘lower than expected’

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Hotel Chocolat expects sales to be slightly lower than market expectations and underlying profit before tax to break even in the 2023 financial year.

Interior of Hotel Chocolat store, showing Christmas products on shelves

Hotel Chocolat reported lower sales across all channels over the Easter period

The retailer reported lower sales across all channels over the Easter period, while digital and wholesale channels had lower revenues due to a “focus on quality of earnings”.

The chocolatier previously announced that its financial year for 2023 was a “transition year” to help reshape the business for future growth. It says “excellent progress” has been made on cost-base efficiencies.

More UK stores are in the works next year, along with new products and launches appearing from mid-summer. A return to sales and EBITDA growth is now expected by 2025.

Co-founder and chief executive Angus Thirlwell said: “During this financial year, Hotel Chocolat has taken effective action to overcome the growing pains of rapid growth and scaling £200m in revenues. We are now well set up for the next stage of growth both in the UK and overseas key markets.

“Getting through these barriers to growth is a real test of culture and I am unceasingly impressed by the strength of the Hotel Chocolat culture as we remodelled our way through FY23.

“Our manufacturing and distribution are well invested now, with suitable head room, liberating capital for future revenue growth. We can see more than 50 new locations for a Hotel Chocolat latest-format store in the UK over the next few years and our adapted approach to international major markets is making sound progress.

“We are very grateful to our growing base of loyal and new customers, who are signalling that ethical and higher-cacao premium chocolate is definitely worth it.”