Member Article

Thorntons reveal increased losses

Thorntons has announced further losses as tough conditions on the high street take their toll.

The chocolatier announced pre-tax losses of £2.2m in the 53 weeks up until the end of June, more than double its £1m loss the previous year.

Revenue dropped by 0.5% to £217.1m, while retail sales, including its own shops, franchises and online, fell 5.2% to £132.1m. Supermarket sales of Thorntons branded chocolates meanwhile grew 7.9% to £85m.

In that period, Thorntons has closed 36 shops, with the aim of closing a total of 120 over three years. Despite this, however, the confectioner increased its market share by 0.1% to 7.8%.

Chairman John von Spreckelsen said: “During the past year Thorntons has continued to operate in a difficult trading environment as the UK economy moved into a double-dip recession.

“We maintained production volumes and grew our market share in an overall weak marketplace. This was, however, achieved at the expense of margin and as a result profitability was affected in particular during the first half of the financial year.”

CEO Jonathan Hart defended the long-term strategy: “We have made good progress in implementing this three-year plan.

“The past year has presented many challenges but we have been encouraged by the way in which the business has demonstrated its ability to cope with these difficulties.

“I am confident that the core direction of our strategy is right.”

This was posted in Bdaily's Members' News section by Robert Cooper .