Thorntons Continues to Rebalance its Business
Thorntons, the UK confectionery manufacturer and retailer, has increased revenue by 1.8% to £221.1 million for the 52 weeks ended 29 June 2013 as it continued to successfully rebalance it sales towards the Fast Moving Consumer Goods (FMCG) division (formerly Sales & Operations).
Profit before tax and exceptional items increased to £5.6 million from £0.9 million in 2012 and pre-exceptional operating profit (EBIT) margin increased from 1.3% to 3.3%. Thorntons is also making good progress with reducing its Own Stores estate to a sustainable size for the longer-term.
The revitalization of the Thorntons brand has commenced with a new brand identity, clear product categorisation and a refreshed range including innovative new products for year-round chocolate gifting.
Thornton has also made significant progress towards restoring profitability to industry competitive returns over the medium to long-term. It is continuing to focus on improving margins and controlling costs.
The FMCG division continued its strong growth during the year with a 19% increase in sales and will become Thorntons’ largest division by the end of the current financial year. The prospects for the International channel continue to be encouraging, although it is currently still a small proportion of overall sales.
Jonathan Hart, chief executive of Thorntons, comments: “We have made significant progress in transforming Thorntons over the past year and continue to successfully rebalance revenues towards the FMCG division. This is reflected in the recovery of our profitability. Our customers have responded positively to our new year-round chocolate gifting ranges and our multi-channel approach ensures that our products are available to our customers where they choose to buy them. This has resulted in further improvements in market share during the year.”
He continues: “We are on track with our store closure programme but will retain a sizeable store portfolio demonstrating our continued commitment to the high street. Here we can offer a different and personalised customer experience. We refitted 11 stores to our new format which are performing well and receive good feedback from customers.”
