Thorntons’ profits on track as sales edge up 0.6% in fourth quarter
Chocolatier Thorntons has reported that total sales edged up 0.6% in its fourth quarter following a strong performance from its FMCG division.
In the nine weeks to 28 June 2014, the division grew its total sales by 17.3%, helped by a 22.2% increase in UK commercial sales. International sales were down by £0.1 million, accounting for just under 3% of total revenue.
In the retail division, overall sales declined by 11.1% as 11 stores closed during the quarter which was in line with strategy. Like-for-like sales fell by 3.9% while consumer direct sales decreased by 2% and accounted for just over 2% of total revenue
Franchise sales declined by £0.1 million.
Never Miss a Retail Update!Thorntons’ chief executive Jonathan Hart said: “Our FMCG division returned to growth during the quarter as a result of a strong performance in our UK Commercial channel. In line with previous periods, we saw no signs of improvement in consumer spending on the High Street during this quarter, which is our shortest and smallest quarter and accounts for around 10% of full year sales.”
Across the full year to 28 June 2014, Thorntons’ total sales increased by 0.7% with sales at the FMCG division climbing by 7.9%. However, the retail division saw its total sales drop by 5.6% although like-for-like sales edged up 1.1%. Consumer direct sales climbed by 15.4%.
The retailer said it anticipates that profits will be in line with market expectations.
Hart added: “The marketplace remains competitive and, in line with our strategy, we continue to focus on the profitability of the business which has improved considerably over the past three years. We are on track with our store closure programme which is focused on delivering a sustainable retail estate and remain confident that our strategy is the right one.”
