Own Stores Decline Hits Thorntons
Reported pre-tax profit before exceptionals fell 2.4% to £6.1m on flat revenue of £214.6m for the year ended June 26th 2010 at Thorntons, the UK confectionery manufacturer and retailer, as sales through it own stores declined, particularly in the second half. Underlying profit before tax improved by 14.2% to £7.5m
In spite of the difficult trading environment, sales of Thorntons branded products grew by 4.7% on the previous year and both the commercial and Thorntons Direct channels showed strong sales growth. Indeed, the Thorntons brand continued to gain market share in the UK chocolate market.
However, the key challenge for the business continues to be the own stores channel. Thorntons has now strengthened the senior retail management team and plans extensive product innovation and changes to the promotional and marketing programmes in order to arrest the decline.
