Thorntons profits tumble
CHOCOLATIER Thorntons posted a lower first-half profit as it needed to discount heavily and spent more on promotional lines to attract cash-strapped consumers to its stores, and the company waived its interim dividend.
The Derbyshire-based company, which has been closing some shops, said sales in its own stores declined in the first half by 7.9 per cent to £68.3m
In December, the company issued a profit warning as hard-up consumers stayed away from the 100-year-old group during the Christmas period – one of its most important times of the year.
Pre-tax profitS, before exceptional items, more than halved to £3.1m.
Despite weak sales at its bricks-and-mortar stores, the company’s online sales grew five per cent and Thortons said it expected its new website to launch after Easter.
Falling profits led the company to scrap its interim dividend. It paid out 1.95 pence to shareholders last year.
“The board will return to a progressive dividend policy as soon as the trading and prospects of the business allow,” Thortons said in a statement.