Sales Trading Statement
January 22 2004 - 1:00AM
UK Regulatory
RNS Number:4995U
Thorntons PLC
22 January 2004
22 January 2004
Thorntons PLC
SALES TRADING STATEMENT
28 WEEKS ENDED 10 JANUARY 2004
Thorntons PLC, the speciality retailer and manufacturer of high quality
chocolate, toffee and other sweet foods, today reports sales figures for the 28
weeks ended 10 January 2004.
* Total company sales increased by 4.4% to #109.3m.
* Own shop sales increased by 2.4% on an estate virtually unchanged in
size at 388 with the number of cafes rising by one to 27.
* Own Shop like-for-like sales for the half year were +2.5%. Strong
growth over Christmas resulted in like-for-like sales of +4.6% for the
seven weeks ended Saturday 27th December. However, margin levels did
not fully meet our internal expectations.
* franchise sales growth of only 1.3% despite 10 more outlets was
mainly due to destocking and some short-term summer re-merchandising
into gifts and cards. In addition most Franchises do not sell ice
cream in contrast to almost all our own stores.
* Commercial: The strategy to widen distribution of Thorntons products
into other retailers continues to be highly successful. Private label
commercial sales rose by 6.0% to #8.8m and Thorntons branded
commercial sales were up 140%, driven by new listings, to #3.6m.
* Thorntons Gift Delivery Service sales fell by 2.9% to #3.3m which
was a disappointment given the previous exceptional growth. However,
there is still great scope to continue growing this business.
* Royalty income from the licensed range of cakes, puddings, biscuits
and other sweet food was static at #248,000 in the half year, as a
result of our decision to concentrate on certain product categories
and discontinue others.
Peter Burdon, Chief Executive, commented: "I am pleased with the strong
performance over Christmas. Whilst I would have wished for our margin to have
been stronger, we were left with little surplus stock post Christmas. Progress
on new Commercial listings has been very good and we now have products on the
shelf of every major food retailer. We are developing the range further into
this new market with a range of boxed chocolates and Easter eggs.
Whilst the turnaround in sales since the summer is very encouraging, we
recognise that creating consistent sales growth is key and this is central to
our strategy. In addition, we intend to give further impetus to margin and cost
improvement."
Thorntons plc will be announcing their Interim Results on Tuesday, 24th February
2004.
* On 29th October the Company announced that preliminary discussions
were being held with a number of parties which may or may not lead to an offer
for the company. Those discussions are continuing and shareholders will be kept
informed as and when there is any material development.
For further information, please contact:
Sales Trading Statement:
Peter Burdon - Chief Executive, Thorntons PLC 01773 540550
Martin Allen - Finance Director, Thorntons PLC 01773 540550
Charles Ryland / Catherine Miles - Buchanan Communications 020 7466 5000
Corporate Issues:
John Jackson - Non-executive Director, Thorntons PLC 01243 622223
1. Interim Sales Analysis
First Half Sales First Half Sales Full Year Sales
2003/04 2002/03 2002/03
#m #m #m
Own shop 85.8 83.8 133.8
Franchise 7.8 7.7 12.3
Private label commercial 8.8 8.3 12.6
Thorntons branded commercial 3.6 1.5 3.1
Gift Delivery Service 3.3 3.4 5.3
TOTAL 109.3 104.7 167.1
2. Comparison of 2003/2004 sales with the previous year
28 weeks ending 10 28 weeks ending 11 Full Year
January 2004 January 2003 2002/03
Own shop 2.4% 0% (0.5)%
Franchise 1.3% 9.7% 8.8%
Private label commercial 6.0% (3.4)% 3.3%
Thorntons branded commercial 140.0% 161.0% 93.8%
Gift Delivery Service (2.9%) 37.1% 26.2%
TOTAL 4.4% 2.3% 2.0%
Own Shops like-for-like 2.5% 1.6% 0.9%
3. Changes in the Retail estate can be summarised as follows
Opening number 389 395 395
New shops 2 2 3
Resites 0 2 3
Closures (3) (9) (12)
Closing number 388 390 389
Franchise shops trading 201 191 198
Royalties from licensed Products (#000) 248 251 540
This information is provided by RNS
The company news service from the London Stock Exchange
END
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