Thorntons enjoys good growth
Strong performances across all sales channels have helped boost pre-tax profits at Thorntons by almost 20%.
The UK confectioner has also passed the £200 million sales threshold for the first time ever.
Thorntons’ preliminary results statement for the year ended 28 June 2008 show that despite toughening market conditions, sales grew by 11.9% to £208.1 million, while pre-tax profit rose by 19.6% to £8.5 million and operating profit increased by 16.7%.
Thorntons markets its products through several different channels, all of which reported good growth during the year. Sales through the company’s own retail stores were up 4.6% to £135.1 million; franchise stores sales increased by 14.5% to £14.9 million; commercial sales jumped by more than 33% to £49.5 million, and internet sales through Thorntons Direct grew 26.6% to £8.6 million. The company’s success is underpinned by its strategy, announced in 2006, of delivering sustainable, long-term profitable results across all sales channels by investing in the brand, developing innovative products, modernising its stores, expanding its commercial and direct businesses, and attracting and retaining the best people’.
A steady stream of innovation during 2007-8 began with the relaunch of Thorntons’ flagship Continental range, which has effectively reversed its long-term decline. With a view to reducing its reliance on Christmas and Easter, Thorntons also improved its ice cream offering, introducing two new flavours and a new ice cream stick. “Looking ahead,” says CEO Mike Davies, “we have a new range of luxury chocolate blocks and a super premium box of chocolates coming out this autumn, together with a product pipeline packed with exciting ideas for the next three years.”
Thorntons is also investing heavily in its retail outlets. It operates 379 own stores and 250 franchise stores across the UK, and has begun to replace its EPOS equipment at a cost of more than £4 million. This August also saw the opening of three Thorntons concept’ stores ” in Kingston, Reading and Bluewater, Kent. Two more concept stores are planned for completion this month, in Nottingham and Edinburgh.
Looking ahead, Thorntons aims to increase its share of the UK chocolate market by more than 50%. It currently holds approximately 6% of market sales. It also aims to grow internationally through selective development of its export sales.
