Weather fails to dampen Thorntons sales in UK

Dismal summer weather has failed to dent a recovery at Thorntons after the chocolate maker unveiled a sharp rise in sales today.

The company said improved product ranges, including its selection of organic chocolates, and a £1m (€1.5m) store refurbishment programme helped sales surge 26.2% in the 11 weeks to June 30, to £26.5m (€39.5m).

The rise, which included a 7.2% like-for-like sales increase at its stores, lifted full-year sales 5.3% to £186m (€277m) – ahead of analysts’ forecasts.

Mike Davies, Thorntons chief executive, said: “We have continued to make progress in all sales channels following a difficult start to the year.

“Own-store like-for-like sales growth of 7.2% remains a solid achievement and underlines the progress made in the delivery of our sales and marketing-led strategy.”

He added that the company, which operates about 366 UK stores and has 214 franchised outlets, was confident of its financial performance for the full year.

Among the products driving demand was Thorntons’ Single Origin chocolate range, using cocoa beans from one region, such as Tanzania or Cuba, rather than blends.

Its organic range, launched last September in the face of changing consumer demand, has also remained popular with consumers. And Thorntons’ decision to revamp its Continental range of chocolates has paid dividends, the firm added.

Sales at the company’s Thorntons Direct online business jumped 60.2% to £900,000 (€1.3m)during the period, with full-year sales at the division up 22.9% to £6.8m (€10.1m).

The Derbyshire-based firm said its online business was showing “continued benefit” from significant investments made earlier in the year.

Franchise sales increased 25.9% to £1.8m (€2.7m) while sales to supermarkets and other retailers grew by 53.5% to £5.2m (€7.7m).

Analysts today welcomed the trading update with Numis Securities forecasting full-year pre-tax profits of £6.7m (€10m), up from £5.3m (€7.9m) a year earlier.

Seymour Pierce analyst Andrew Wade added: “This was an impressive quarter, although it is the least significant, and we see the continuing positive trend as leaving us with scope to marginally upgrade our already top-of-the-range forecasts for next year.”

Thorntons shares jumped 5% to 178p on the update and the stock has added more than 25% since the start of the year.