UK chocolate retailer Thorntons has announced revenues up 2.9% and profit after tax up by 49.3% for the half year ended 12thJanuary 2013. Despite this, the company has said that it expects to close a further 40 stores in the coming months, continuing the program announced in June 2011 when it said it would close up to 180 stores over the coming three years.
Sales of Thorntons branded product in the UK commercial channel increased strongly by 16.1% to £51.8 million (2012: £44.6 million, but own store sales declined by 8.3%, mainly due to the closure of a further 13 stores in line with the long-term strategy. Like for like sales decreased by 1.5%.
Franchise sales declined by 25.4%, mainly reflecting the placing into administration of the company’s major franchisee in May 2012.
International sales grew by 57.7%, while sales of private label grew to £3.9 million from £0.8 million.
"We are encouraged by the overall progress we made during the first half of the year,” said Jonathan Hart, Thorntons' chief executive. “This performance demonstrates that our strategy is generating results as we continue to rebalance the business, revitalise the brand and restore profitability.”
"Our customers have responded positively to our increased focus on innovation, value and service and our market share has grown further. This reflects the continued strength of the Thorntons brand across our multi-channel distribution model.”
"Whilst trading since the period end has been in line with our expectations, we look forward to our important spring trading seasons of Mothers' Day and Easter which will be key to the outcome of the full year,” he concluded. “We have strong trading plans in place and exciting new products across all channels. We are confident in the actions we are taking but remain cautious given the continuing challenge of the economic climate."
