Hotel Chocolat shares plummet 13 per cent after profit warning on flagging consumer sentiment
Hotel Chocolat shares have plummeted by around 12 per cent as the premium brand is expected to be back in the red.
The retailer, which has fallen victim to cash-strapped Brits cutting back on luxuries, said it now anticipates revenue of £201.8m and underlying profit before tax of £0.3m for the 2023 financial year.
It comes amid warnings on profits after worse than expected Easter sales, which saw shares in the chocolatier drop 10 per cent.
The London-listed brand said sales are “in line with market expectations” and “cash generation remains healthy with cash at hand of £19m and zero debt”.
Chief executive Angus Thirlwell said: “As previously announced, FY23 is a transition year to re-shape the business in readiness for its next stage of growth.
“While excellent progress has been achieved on cost base efficiencies, they are materialising later in the year than initially anticipated.”
Sales and profit before tax for next financial year are currently anticipated to be “lower than current market expectations” which the brand said was thanks to “ongoing weakness in consumer sentiment and continuing inflationary pressures”.
But Hotel Chocolat says it expects to reap the full benefits of its 20 per cent pre-IFRS earnings before interest, taxation, depreciation and amortisation in financial year 2026.
Brits have been slowing down on food sales according to this morning’s ONS figures, while inflation and the ever-growing cost of living crisis has forced millions to abandon luxury items, and tighten their belts to just essentials.