Hotel Chocolat Share Discussion Threads

[tomboyb] 19/7/2022 12:42

A few more for the trade -

I must be mad -

Hold a few JOUL as well for a trade -

[tomboyb] 19/7/2022 12:34

FYI -

Took a few and down already at 118p -

115.5p to buy -

Trade only -

[bulltradept] 19/7/2022 12:10

Hotel Chocolat melts in the heat
The market was spooked by warnings of a full-year loss and a new approach to international opportunities
July 19, 2022
By Christopher Akers


Revenue beats expectations
Lower growth forecast
Hotel Chocolat’s (HOTC) shares had a bitter fall on Tuesday morning, tumbling more than 40 per cent after the the premium chocolatier said it expected to make a statutory loss for the year to 26 June and revealed impairment charges and plans for international investment to be “materially reduced”.

HOTC:LSE
Hotel Chocolat Group PLC

1mth
Today change
-47.89%Price (GBP)
122.45
The trading update said that the company would be hit by non-cash impairment on £23mn of loans made to its Japan joint venture – with a possible “full impairment charge” – and £3mn of provisions will be recognised due to closed stores in the US.

International expansion plans will be scaled back, with the company funding “necessary working capital only, without making speculative investments in customer acquisition or capex”. The US market will become online and wholesale only. Management argued that the UK has a "significantly larger addressable market size" than previously thought, due to progress made with - for example - online sales and new products such as the Velvetiser hot chocolate machine.

The top line brought some relief. Revenue was up by 37 per cent to £226mn, ahead of market consensus expectations, and by 70 per cent against pre-pandemic. But the company also highlighted that there will be lower sales growth and profits in the near-term as it pivots to focus on “its most proven and lower-risk strategies” over the next few years.

Peel Hunt analysts said that plans for the US and Japan “will come as a surprise to many, and a disappointment, as these were obviously the first real steps to demonstrate that [the company] was able to become a global brand”. The broker downgraded its recommendation to hold. We do the same, on the basis of a weakened outlook and a revised business focus. Hold.

Last IC View: Buy, 440p, 3 Mar 2022

[bulltradept] 19/7/2022 12:08

Someone hasn't practised position sizing properly! lol

[early retirement] 19/7/2022 12:05

Shorters?

Imminent Big Issue sellers.

[early retirement] 19/7/2022 12:01

Sellers?

Idiots.

[williamcooper104] 19/7/2022 11:37

Interesting It's basically going de-growth in ratings multiple Though no balance sheet issues and core UK operations appear sound - this isn't going bust Wondering what the PE is on 2022 underlying profits and what the forward multiples are when they get to 20 percent ebitda in 2025 U.K. retailer expanding abroad and failing - a tale told many times

[blueball] 19/7/2022 11:03

Too expensive at 100p.

[wallywoo] 19/7/2022 10:54

Directors already own 54% of this company. So they have plenty of skin in the game. With the original float price of 148 in 2016, have decided this fall is down enough. In at 125

[glavey] 19/7/2022 10:41

Confucious say: Those waking up to sticky fingers better wash hands.

[bulltradept] 19/7/2022 10:27

Oh dear looks like mgt are fire fighting here.

Buying before the strategy has worked is a recipe for more pain.

From the chart, look like Mr Market sold it off, probably realising things were dicey.

Good luck all if you are buying down here.

[glavey] 19/7/2022 10:24

Forty degree meltdown.

[tomboyb] 19/7/2022 10:11

Someone wants out -

500k sold at 1.28 -

[tomboyb] 19/7/2022 09:52

Someone offloading in 15k chuncks -

[brownbear3] 19/7/2022 09:51

This is well overdone

[agnes] 19/7/2022 09:28

Probably right. Directors might add today though

[74tom] 19/7/2022 09:26

It's a crowded trade now, what I suspect will happen is a plateau today before impulse bottom pickers begin to sell out. It's very illiquid so this will lead to a further fall to ~£1. At that level it could be an interesting 3 year investment...