Chocolate Retailer Sees Progress in FY24 Despite FY23 Loss

  • Revenue fell by 10% to £204.5m in FY23
  • UK revenues dropped by 8% year-on-year
  • FY23 focused on rebalancing the business post-pandemic
  • Underlying loss before tax of £800k compared to £21.7m profit in FY22
  • UK store sales increased by 14% year-on-year in Q1 FY24
  • Only one store opened in FY23, four out of 12 planned stores already open in FY24
  • Cost reductions from restructuring activities flow into FY24
  • New store format performing above expectations
  • Exciting new products and resumed in-store tastings
  • Love March offer reflects human individuality across Hotel Chocolat range

Hotel Chocolat has reported a 10% revenue drop to £204.5m in the year ended 2 July, mainly due to lower online and international sales. UK revenues also decreased by 8% year-on-year but were in line with market expectations. The company focused on rebalancing its business post-pandemic during FY23, resulting in an underlying loss before tax of £800k compared to a profit before tax of £21.7m in the previous fiscal year. In the first quarter of FY24, Hotel Chocolat made significant progress on its ‘shape of the future’ strategic priorities and saw UK store sales rise by 14% year-on-year. The group opened only one store in FY23 but has already opened four out of 12 planned stores in FY24, which are exceeding expectations. Cost reductions from last fiscal year’s restructuring activities are now benefiting FY24. CEO Angus Thirlwell said the company is on track and expects 12 new locations to open next year. In-store tastings have resumed, and exciting new products support strong store performance.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Hotel Chocolat’s financial performance, including revenue figures, store sales, and the company’s strategic priorities. It also includes quotes from the CEO that support the claims made in the article.
Noise Level: 3
Noise Justification: The article provides relevant information about the financial performance of Hotel Chocolat and its strategic plans for growth. It includes specific figures and quotes from the CEO, but it could benefit from more analysis or context on the broader chocolate market or industry trends.
Financial Relevance: Yes
Financial Markets Impacted: Hotel Chocolat’s stock and related chocolate industry stocks
Financial Rating Justification: The article discusses the financial performance of Hotel Chocolat, a chocolate retailer, and its impact on revenue and profits. It also mentions plans for opening new stores and product offerings, which can affect the company’s stock value and potentially the chocolate industry as a whole.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk