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Hotel Chocolat Group PLC on Thursday said it would be working to reduce risk strategies moving forwards, following the release of its preliminary full-year results.
For the twelve months ended June 26, the Hertfordshire, England-based chocolate maker posted revenue of £226.1 million, up 37% from £164.6 million a year prior.
This increase reflected UK revenue growth of 35% year-on-year, with store sales 23% higher than pre-pandemic figures.
Underlying pretax profit rose to £21.7 million from £9.6 million the previous year, in line with market expectations.
In contrast, Hotel Chocolat recorded a pretax loss of £8.7 million, swinging from a profit of £5.5 million the previous year. It attributed this change to exceptional one-off costs and adjusting items of £30.4 million. Costs of sales also jumped to £93.8 million from £62.9 million.
Looking ahead, the company said that trading for the current financial year remains in line expectations, though online and wholesale sales have proved softer year-on-year.
It said it was adopting a ‘deliberately prudent’ approach to its outlook on trading, manufacturing controlled levels of seasonal inventory with a strong focus on ‘self-help actions’ to mitigate inflationary pressures.
The company added that a focus on ‘quality over quantity’ would target reduced levels of discounting and drive a higher mix of full-price sales.
In other news, Andrew Gerrie has confirmed his intention to step down as chair in 2023 in order to focus on growing commitments to his other business ventures. Matt Pritchard will also be leaving the business in 2023 to pursue new opportunities, following nine years as chief financial officer.
Announcement details of their successors will be made in due course.
‘Much of what we are publishing today in terms of the business strategy has already been announced to the market in July. Since then, the performance of our retail stores continues to beat 2019 pre-Covid levels and subscriptions are in growth too. We have reduced online marketing spend resulting in lower volume, but higher quality full-price sales. Our wholesale partners are also showing caution too,’ said Chief Executive Officer Angus Thirlwell.
‘It goes without saying that the current environment is challenging on multiple fronts. Over the last few months we have taken decisive steps to reduce risk and to fully pull all our self-help Ievers in both our manufacturing and retailing businesses. One thing is for sure, we will never compromise on the brand standards and values which have built our following to this point.’
Hotel Chocolat shares were trading 1.4% higher at 147.00 pence each in London on Thursday afternoon.
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