Hotel Chocolat Group PLC (AIM:HOTC) shares fell 17% to 115.2p after the company said it expects a "minor loss" this year and lower sales and profits next year as cost efficiencies come through slower than expected.
The chocolatier issued a profit warning in April but had still expected to break even amid a "transitional year" in which it looks to re-shape the business.
"While excellent progress has been achieved on cost base efficiencies, they are materialising later in the year than initially anticipated," Hotel Chocolat said in today's update.
Sales for the 2023 financial year remain in line with market expectations of just under £202mln, it noted, with cash generation "healthy".
For the 2024 financial year the company expects sales and underlying profit before tax to be lower than current market expectations "due to ongoing weakness in consumer sentiment and continuing inflationary pressures", with guidance also tweaked for 2025's target of 20% underlying earnings (EBITDA) "to be achieved towards the end of the year, with the full benefits being achieved through FY26".