Thorntons posts strong half-year profits
Chocolatier Thorntons has seen a 47.3% jump in its half-year pre-tax profits as it continues to reduce its high street store presence and looks to sell more of its chocolates online and via supermarkets.
In the 28 weeks ending 11 January, Thorntons’ revenues increased by 4.5% to £139.7 million while pre-tax profits before exceptional items rose to £7.2 million from £4.9 million in the previous year.
Thornton’s FMCG division, which includes sales to supermarkets, grew its turnover by 14.5% to £70.6 million which meant that its sales exceeded those of the firm’s retail division for the first time.
Within the retail arm, a strong first half in own stores and good growth in online trade resulted in a 2.1% increase in like-for-like sales. However, total sales fell by 4% to £69.1 million as the retailer pursued its ongoing store closure programme which left it with 36 fewer stores than in the same period a year earlier.
Never Miss a Retail Update!Thorntons ended the first half with 281 stores and said it remains on track to close approximately 40 stores over the full year as planned.
Jonathan Hart, Thorntons’ chief executive, said: “We are pleased to report further increases in both revenues and profits as we continue on our journey of transforming Thorntons towards an international FMCG business and UK multi-channel retailer. Across our two divisions, all of our core channels have delivered positive results. We are particularly pleased to have maintained strong sales growth in our UK Commercial channel and achieved positive like-for-like growth in our retail division.”
Looking ahead Hart added: “As expected, the marketplace remains highly competitive and our consumers continue to seek value; our plans have been made accordingly. Our current outlook for the financial year remains in line with market expectations.”
