Tony’s Chocolonely has reported a 23.2% year-on-year increase in revenue, to €150 million, in its financial year 2022/23, from €121.9 million in the previous year.
The increase represents an additional €28.2 million, which is the largest absolute annual revenue growth for Tony’s to date, the company noted.
However, the company incurred a total loss of €2.7 million due to depreciation and other financing costs.
Operating profit stood at €1.1 million, while gross margin shrunk from 45.6% to 41.8%.
Tony’s Chocolonely added that it paid partner farmers a higher price to compensate for increased costs due to inflation.
The company also implemented some price increases, but added that it absorbed most of the market pressure instead of passing it on to consumers.
Cocoa Income
Ivorian farmers selling beans to Tony’s upped their cocoa income by a 51% last year.
The company paid the Living Income Reference Price (LIRP) for cocoa, which is higher than the national farmgate price and the Fairtrade price combined.
Along with Tony's, all brands sourcing cocoa via Tony’s Open Chain initiative also pay the LIRP.
In total, 17,740 farmers benefitted from these cocoa prices in FY 2022/23, which is 2,977 (20%) more than the previous financial year.
After Ben and Jerry’s came on as an ally at the end of 2022, six new partners joined Tony’s Open Chain’s initiative, including retailers Jumbo and HEMA. This resulted in a 28% increase in the total bean order volume for the coming year, the company added.
Outlook 2023/24
Tony’s Chocolonely is confident that it will rebuild its margin as it find economies of scale in an environment with more stable inflation.
In terms of operating profit, the said it was 'in a growth phase' and has made a conscious choice to invest 'ahead of the curve' to capture the market.
It hopes that its business model will deliver 'strong financial returns' in the long term, proving its case that a globally scaled, financially successful impact company is possible.
