Thorntons profits fall 79 percent

The British chocolatier Thorntons plc is to concentrate on selling its premium chocolate range through commercial channels and will also explore international markets after its earlier focus on own-store sales helped profits to slump. The company reported a profit fall of 79% to € 1.125 m for its financial year 2011/2012 (ended 30 June 2012). Sales dropped 0.5% to € 271.2 m, while total retail sales which include own stores, franchises and its online offering Thorntons Direct fell 5.2% to € 165 m.

The own store sales decreased 5.8% (€ 139.2 m), while franchise sales declined 7.8% (€ 13.4 m), affected by the administration of franchise partner Clinton Cards in May. However, the company’s commercial channel grew 7.9% to € 106.2 m during the year. And the online business ThorntonsDirect is also showing signs of progression with a 9.8% sales boost to € 20 m. As part of a three-year strategy to focus on commercial channels, Thorntons is paring down its own-stores. The company said that will close 120 of its 344 stores during the next three years; 36 stores were closed during the financial year.

“During the past year Thorntons has continued to operate in a difficult trading environment as the UK economy moved into a double-dip recession,” explained Chairman John von Spreckelsen. It was also announced that von Spreckelsen, who announced plans to retire last September, will remain in his post until February 2013, after which current Senior Non-Executive Director Paul Wilkinson will succeed him.

www.thorntons.co.uk