Whittard of Chelsea, the renowned British tea, coffee, and hot chocolate company, has released its 2023 financial results, highlighting robust domestic growth and ambitious plans for continued international expansion. Bolstered by a resilient UK high street presence and strong international appeal, Whittard of Chelsea has continued to evolve and remain relevant to ever changing customer expectations.
Financial snapshot
The company reported the following highlights in the recently filed 2023 accounts:
- Total sales of £45.7m, represented an increase of 8% versus the prior year.
- UK sales of £39.4m, up £4.5m, +13% versus 20222, reflecting the brand’s growing appeal among domestic customers
- 28% uplift in like-for-like retail sales versus 2022, and 12% higher than pre-pandemic levels
- £2.2 million improvement in operating profit versus the year prior despite inflationary pressure
Nathan Smith, CEO of Whittard of Chelsea, commented: “Our strong 2023 results reflect the health and appeal of the brand as UK sales increased 13% year on year. What is most pleasing is that the growth is driven by increased levels of domestic and international footfall, demonstrating that our customer focused growth plans are starting to deliver results.
“Overseas, we continue to focus on Asia, Middle East, and the US where we see significant opportunities. Highlights in the year included, South Korea in market sales growth of 89%; winning our first airline contract with Saudi; launching a new strategic wholesale partnerships in the US. However, we did face challenges with EU sales as rule changes effected the supply of our products for eleven months of the reporting period.
“Momentum has continued in the first eight months of 2024 with double-digit like-for-like sales growth. We have also strengthened our board of Directors with the addition of a new CFO and CMO, alongside experienced non-executive Directors David Boynton and Matt Pritchard.
“We have some tremendous highlights from 2023, and I am excited about the future ahead.”
UK high street success and new store concepts
Whittard of Chelsea remains a key fixture of the UK high street, and the company operates over 40 stores nationwide, including its flagship location in Covent Garden and a newly launched concept store in a prime location on Oxford Street. Whittard’s new Oxford Street store is an example of its vision for the future. This new store presents an immersive customer experience designed in collaboration with an external design agency, reflecting Whittard’s 137-year of expertise, while offering a contemporary twist. Opened in July 2024, the store offers customers an interactive experience, with a tea tasting station, an innovative loose tea wall, and digital screens that enhance the story telling of the brands history and the products on offer. The store’s taste guarantee ensures every customer leaves with confidence in their chosen product.
Expanding global presence
Whittard has continued to build its global presence and remains active in over 40 countries. The brand’s products are featured in premium retailers and department stores across Europe and Asia, and Whittard operates franchise stores in Taiwan and Korea. E-commerce remains a vital growth area, with China standing as Whittard’s largest market outside the UK.
Whittard has recently opened a New York office to accelerate its expansion in the US market and is enhancing its team in Asia, with new colleagues recruited in Hong Kong and Shanghai. In addition, the company has secured a landmark airline contract with Saudi Airlines, boosting visibility in the Middle East, while travel retail continues to provide strong revenue growth through UK airports.
EU regulatory disruptions affected shipments in the first 11 months of the period, but these issues are now resolved, and we have been supplying our customers now for the last 9 months.
Looking ahead
Whittard is well positioned to pursue sustained growth across all regions. The company has ambitious plans to:
- Expand its successful UK retail footprint with new store openings planned for 2024 and 2025.
- Launch a new loyalty program in September 2024, designed to reward our growing loyal customer base and deepen customer engagement by providing more of what they want.
- Continue to use deep expertise in tastes and flavour trends to drive innovation into our products to market, ensuring Whittard continues to inspire the discovery of the exceptional.
Nathan Smith concluded: “Whittard’s future is full of potential. We are committed to building on our strong UK presence and expanding globally in markets where we see great opportunity. With new store concepts, a loyal customer base, and a strong leadership team, we are excited to continue our growth journey and share the Whittard experience with more customers around the world.”
