Chocolate manufacturer and retailer Thorntons has reported its fourth quarter trading figures. The company says that these demonstrate further progress in transforming the business.
Total sales were up 5.6% to £26.8 million.
The company said that it saw continued strong growth in the Commercial division which will become Thorntons' largest division by the end of the current financial year in line with the strategy to rebalance the business. The prospects for the International channel continue to be encouraging, said the company, although currently still a small proportion of overall sales.
UK Commercial sales grew by 11.8% to £9.2 million, with international sales more than doubling to £0.9 million and private label sales increasing to £0.7 million.
Thorntons said that its retail division showed good progress towards the objective of creating a sustainable retail estate of 180-200 stores. The period saw positive like-for-like sales in its own stores, a trend reflected in the franchise channel.
Own store like-for-like sales increased by 0.5%. Overall sales in the company’s stores declined 3.8% to £13.9 million as a result of the 34 store closures during the year, in line with the company's strategy. Franchise sales improved by £0.2 million to £1.3 million. Thorntons direct sales decreased by £0.1 million to £0.8 million.
Thorntons reiterated that it continues to anticipate profit before tax, impairment and onerous lease charges for the full year to be ahead of current market expectations of £4.6 million.
"I'm pleased to report further encouraging progress during the final quarter of our financial year,” said Jonathan Hart, Thorntons' chief executive. “Despite being our smallest sales quarter we have continued to demonstrate the positive impact of our strategy and the strength of our brand.”
"Our UK Commercial sales growth and market share remain strong and our Own Stores have now delivered positive like-for-like growth across the whole of the second half of this year. We are on track with our store closure programme and have refurbished seven stores to our new format in the period under review.”
"The trading environment continues to be challenging. The actions we have taken are delivering positive results reflected by the progressive recovery in our profitability over the past 18 months."
