New products to sweeten summer's sales after Thorntons profits rise
DERBYSHIRE chocolate-maker Thorntons has reported a 25% rise in half-year profits and is aiming to stay on a high with the launch of new products.
The Somercotes firm yesterday announced that pre-tax profits for the 28 weeks to January 9 rose to £9.1m after the company decided to avoid heavy discounting in the run-up to Christmas.
As a result, overall sales fell by 0.7%, but sales of Thorntons-branded products went up 5.5%.
The firm, which has about 380 stores and employs about 4,000 people, is now hoping to continue this momentum by launching new ranges to help summer trading.
The company hopes products like its recently launched Praline Melts, and an expanded ice cream range to cater for the quieter summer months, will reduce its dependence on Christmas.
Last month, Thorntons reported a decline in sales over the Christmas period, which were down 2.4% in the 14 weeks to January 9, compared with the same period 12 months ago.
But the firm said that although it was disappointed sales had dropped in its own stores, overall it was satisfied with performance.
In its latest results, sales at its stores fell 4.4% in the second quarter.
But the firm said because of its decision not to cut prices, the group managed to grow online sales by 11.5% as corporate business showed signs of recovery.
Thorntons' commercial sales to retailers also advanced by 6.5% despite the loss of business from failed high-street icon Woolworths.
However, trading was dented by the administration of the Birthdays greeting card chain in May last year, which was a customer and franchise partner of the group.
Thorntons lost 94 stores as a result of the administration, with franchise sales down 17% to £8.2m as a result.
The firm has managed to reopen 70 stores so far.
This has taken its total number of franchises to 222, with plans for a further 26 openings to be completed by the end of June.
Chief executive Mike Davies welcomed the "significantly improved" profits performance.
He said that the group had cleared all of its Christmas stock and added that Thorntons was well-placed to cope with a potentially difficult retail climate during 2010.
He said: "We are in the process of adding several products to our offering and have just launched the new Easter range in our stores.
"Going forward, we will continue to focus on reducing our dependency on Christmas by investing in products that drive sales in the traditionally quieter summer months.
"We therefore expect to be able to continue to improve our performance in the second half, which is historically loss-making."













Comments
by Chris, Derby
Thursday, February 18 2010, 2:28PM
“It is so good to read something positive for a change!
Local firm, profits, new products!
This is a well established local firm with its roots firmly set in Derbyshire, I would like to see more stories like this!”