First-quarter sales spark at Hotel Chocolat
By Abigail Townsend
Date: Thursday 12 Oct 2023
(Sharecast News) - Shares in Hotel Chocolat Group jumped on Thursday, after the high-end confectioner said it was entering its crucial Christmas trading season in a "strong" position.
The chocolate specialist said that while it remains mindful of inflationary pressures and the cost of living crisis, the current financial year had started well.
It called current trading "encouraging", adding: "The group is entering its key 2024 full-year Christmas trading season in a strong position, with good liquidity due to improved cash balances and lower working capital."
UK store revenues rose 14% in the first quarter, or by 13% on a like-for-like basis.
As at 1130 BST, shares in the AIM-listed stock were up 8% at 140p.
The update came as Hotel Chocolat posted a 10% fall in revenues for the year to 2 July, to £204.5m, in line with market expectations.
Underlying earnings before interest, tax, depreciation and amortisation tumbled to £24.1m from £40.8m a year previously, while underlying pre-tax losses were £0.8m. Last year pre-tax profits were £21.7m.
The pre-tax loss was also in line with expectations, however, after the firm made a number of writedowns.
Angus Thirlwell, co-founder and chief executive, said: "Hotel Chocolat is on the front foot again. The hard, foundational work we put in last year is now starting to deliver the results for us.
"Our new store format is trading well above our expectations, with 12 new locations planned to open in the next year."
Shore Capital said: "Hotel Chocolat has had a turbulent couple of years embracing a significant rebalancing of its international activity and thorough rethink of its cost base.
"Such work represents big strategic decisions, ones we sense that have better positioned the business for the future. We sense that it has positively turned the corner."
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