People need chocolate in a recession, Hotel Chocolat CEO says
01/12/2022 10:03
LONDON, Dec 1 (Reuters) - British chocolate company
Hotel Chocolat HOTC.L is preparing for a very busy Christmas
period, confident that people turn to chocolate and treats to
help lift their spirits in a recession.
But in a sign of caution given the tough economic
environment, chief executive Angus Thirlwell said it was too
early to provide an annual financial forecast for the group due
to the return of pre-pandemic shopping habits which are more
last minute.
"We're finding that people need chocolate," Thirlwell said
in an interview on Thursday. "We've seen this in other
recessionary times before, for example 2008, we were very
resilient then."
The company will provide an update in January.
It earlier posted an underlying profit before tax and
exceptional costs of 21.7 million pounds for its latest
financial year, more than double the previous 12 months, helped
by growing hot chocolate machine subscriptions.
After the previous two December shopping periods were
disrupted by the pandemic, Thirlwell said British shoppers were
enjoying being out and about in stores, which have accounted for
about 70% of the group's sales in the last six months.
"The trajectory that we're on is that momentum is building
and building," Thirlwell said of his expectations for Christmas.
Hotel Chocolat has more than 100 stores in Britain and a
chocolate factory in Cambridgeshire, eastern England.
Rising household bills in Britain have seen consumers in
supermarkets trading down to cheaper brands, but Thirlwell said
it was different for a specialist retailer.
People still want to treat themselves and buy presents for
others, he said, and Hotel Chocolat offered affordable luxury
with 80% of its range priced at less than 15 pounds.
As a British-based manufacturer he said he was much more
worried about inflationary pressures, such as higher energy
bills for his factory, than the demand outlook.
(Reporting by Sarah Young; Editing by Kirsten Donovan)
((sarah.young@thomsonreuters.com; +44 20 7542 1109; Reuters
Messaging: sarah.young.thomsonreuters@reuters.net))