Profits surge at Thorntons after Christmas cheer
THORNTONS posted a 47 per cent jump in first half profits yesterday as the chocolatier’s three-year plan to scale back its shops and grow its commercial and online channels continued apace.
The retailer, which opened its first shop 113 years ago in Sheffield, reported pre-tax profits of £7.2m in the six months to 11 January, in line with analyst expectations.
Revenue was up 4.5 per cent to £139.7m thanks to the popularity of its seasonal chocolate ranges over Christmas, with sales through supermarkets and third-party retailers exceeding sales from its shops for the first time.
In 2012, chief executive Jonathan Hart embarked on a three-year plan, aiming to scale back its bricks and mortar estate to 180-200 stores and grow sales through its website and commercial business.
He said 15 shops were closed in the first half and that the group was on track to close around 40 by the end of the financial year.
Retail sales, including sales through its own shops and website, rose 2.1 per cent on a like-for-like basis compared with a 2.2 per cent decline the same time last year.
Meanwhile sales through its UK commercial business grew by 17.3 per cent to £62.4m, with international sales up £400,000 to £4m.
Net debt in the first half stood at £19.8m, slightly better than forecast, although the group outlined plans to increase its spending on production of the moulds within chocolate boxes and Easter eggs.
Hart said the market remained “highly competitive” as shoppers hunt for low prices, but it was confident ahead of its key Easter selling season.