Tony’s Chocolonely sells more chocolate despite cocoa costs pushing up prices
The Dutch chocolatier said it had managed to grow its sales and profits during a ‘challenging’ year.
Tony’s Chocolonely has said it sold more chocolate bars last year despite hiking prices in the face of soaring cocoa costs and having to recall two of its products.
The Dutch chocolatier said it had managed to grow its sales and profits during a “challenging” year.
It reported revenues of 240 million euros (£207 million) in the year to the end September, a fifth higher than the year before.
The volume of sales grew by 4% year-on-year, meaning revenue growth was driven by both higher prices and people buying more chocolate.
In the US, revenues soared by 50% to make it the brand’s largest market, overtaking the Netherlands for the first time.
Tony’s also revealed that revenues totalled 51.2 million euros (£44.2 million) in the UK and Ireland, which was 14% higher than the prior year.
This came despite “rocketing cocoa prices” and “the worst mid-crop harvest in a decade”, according to the business, which implemented price increases for customers during the year.
“In a year when industry volumes were hammered as second and third-wave price increases were passed through to consumers, we certainly felt the effects but were pleased that, overall, we successfully grew our volume by 4%,” chief executive Douglas Lamont said.
The brand is known for its chunky chocolate bars in innovative flavours, such as milk chocolate rice crisp caramel and the “everything” bar, currently retailing at £4 for a 180 gram bar.
It is also focused on ethically sourcing cocoa, which means paying farmers a higher price and advocating for reducing exploitation in supply chains, including modern slavery and child labour.
The brand, which was founded in 2005, has grown rapidly to be sold around the world and across UK supermarkets and retailers.
It was forced to recall two of its products in April last year after warning that some batches of its chocolate may contain small stones and metal fragments.
The company also cautioned over pressure from higher tariffs affecting its shipments from the EU to the US.
Nevertheless, Tony’s revealed that it made an operating profit of 200,000 euros (£173,000), from a loss the prior year, and
Mr Lamont said: “It’s been a challenging year, but we’ve shown how resilient and effective our model is with strong growth in revenue, volume, profitability and, most importantly, impact on the ground for cocoa-farming families.
“With higher pricing now passed through on shelf to consumers, and as the market pricing for cocoa begins to fall, the industry must collectively consider how we can work together to invest in becoming more resilient to future climate shocks and yield crises.”
