Thorntons cautiously optimistic despite profits fall
Chocolate retailer Thorntons said it was pleased with the level of sales in the final quarter of its financial year despite a sharp fall in full-year pre-tax profits.
In the 53 weeks ended 30 June 2012 adjusted pre-tax profit fell to £0.9 million from £4.3 million in the previous year. Revenue fell 0.5% to £217.1 million.
While own store like-for-like sales declined by 3.8%, online consumer sales increased by 9.8%.
Thorntons said its strategy to rebalance the business was progressing well and had started to bear fruit with good growth its commercial channel and “positive” own store sales in the final nine weeks of the year. The reshaping of its own store portfolio was also on track with 36 stores closed in the course of the financial year
Never Miss a Retail Update!Jonathan Hart, Thorntons’ chief executive, said: “This last year was the first of our three-year plan to restore the company’s fortunes. Despite the challenge to profitability over the past year, in particular during a difficult first half, the actions we have taken have started to deliver benefits during an improved second half.
“The quality of our products, our brand and customer loyalty remain our core strengths and we are pleased that our products continue to be as popular as ever. We do not foresee the economic landscape improving in the near future.
“We have made our plans accordingly and believe that the actions we have taken and continue to take will deliver improvements to profitability. We therefore approach the coming year with cautious optimism.”
In a separate statement the company announced that senior independent director Paul Wilkinson will replace John von Spreckelsen as chairman after his retirement on 1 February 2013.
