Thorntons PLC Trading Statement (0494U)
October 13 2014 - 1:00AM
UK Regulatory
TIDMTHT
RNS Number : 0494U
Thorntons PLC
13 October 2014
THORNTONS PLC
("Thorntons" or "the Company")
FIRST QUARTER INTERIM MANAGEMENT STATEMENT
For the 14 weeks up to and including 4 October 2014.
Thorntons announces first quarter trading update and remains
confident in prospects for the current year
At our full year results in September we advised that the timing
of orders in our UK Commercial channel will increasingly cause
fluctuations in our quarterly reporting, as Thorntons changes into
an FMCG business. This trend has been evident in the first quarter
and has led to a 12.8% reduction in sales in the division and an
11.9% decrease in overall Company sales during the period.
Based on current visibility of orders we expect this to reverse
in the second quarter and that we will see year on year UK
Commercial sales growth in the first half, albeit at a more modest
level due to strong prior year comparatives.
For the full year, the Board remains confident that Thorntons
will perform in line with market expectations* with consensus
pre-exceptional profit before tax for the current financial year
standing at GBP9.65m (2014: GBP7.5m), resulting in further strong
profit growth.
Sales GBPm Q1 Change
14 Weeks %
to
4/10/2014
----------------- ----------- --------
FMCG Division 20.8 (12.8)%
----------------- ----------- --------
Retail Division 20.6 (10.9)%
----------------- ----------- --------
Total Company 41.4 (11.9)%
----------------- ----------- --------
FMCG Division
Divisional sales decreased by 12.8% to GBP20.8 million
reflecting fluctuations in order patterns in our UK Commercial
channel.
-- UK Commercial sales declined by 16.4% although the brand
remained strong with market share** gained over the period
(Nielsen: 12 weeks to 13/09/14).
-- International sales increased by 20.8%.
Retail Division
Divisional sales declined by 10.9% to GBP20.6 million. Twelve
stores were closed and one relocated as we right size our retail
estate to focus on long-term sustainable locations. This resulted
in 249 Own Stores at the end of the quarter.
-- Like for like sales decreased by 3.7% reflecting a
continuation of subdued consumer sentiment and weakness in footfall
seen since Easter.
-- Franchise sales declined by 19.1% due to the timing of orders
and franchisees experiencing similar weakness in footfall.
-- Consumer Direct sales increased by 3.2% as we increase our
focus on growing channel contribution although this remains a small
part of overall sales.
Jonathan Hart, Thorntons' Chief Executive, commented:
"We remain confident of improving EBIT margin further and
maintaining positive profit growth for the full year, in line with
market expectations* driven by strong annual sales growth in our UK
Commercial channel.
"As we said in September we anticipated that sales for this
quarter would be below last year as a result of the increasingly
fluctuating order patterns in our UK Commercial channel. These
fluctuations will become more significant within the context of the
Company's performance as we continue to grow our FMCG business
making quarterly comparisons less meaningful. As we demonstrated
last year, these variances do not necessarily affect overall annual
performance.
"We continue to make good progress with our strategy of
rebalancing the business and have exciting plans in place for the
key Christmas season. We remain mindful that the economic situation
is still challenging for many of our shoppers and trade customers,
although our growth plans do not depend on an economic upturn."
For further enquiries please contact:
Nadja Vetter / Emma Crawshaw / Georgina Hall, Cardew Group. T: 020 7930 0777
* The Board considers market expectations for the financial year
ending 27 June 2015 are best defined by taking the range of
forecasts of PBT published by analysts who consistently follow the
Group. The current range of pre-exceptional PBT forecasts as at 10
October 2015, of which the board is aware, is GBP9.4m to GBP10.0m,
with consensus at GBP9.65m.
** Market share in Inlaid Boxed Chocolates increased by 1.8%
from 34.9% to 36.7% and Total Boxed Chocolates increased by 0.3%
from 12.6% to 12.9%. (Source: Nielsen data).
This document contains certain statements that are
forward-looking statements. They appear in a number of places
throughout this document and include statements regarding our
intentions, beliefs or current expectations and those of our
officers, Directors and employees concerning, amongst other things,
our results of operations, financial condition, liquidity,
prospects, growth, strategies and the business we operate. By their
nature, these statements involve uncertainty since future events
and circumstances can cause results and developments to differ
materially from those anticipated. The forward-looking statements
reflect knowledge and information available at the date of
preparation of this document and, unless otherwise required by
applicable law, the Company undertakes no obligation to update or
revise these forward-looking statements. Nothing in this document
should be construed as a profit forecast. The Company and its
Directors accept no liability to third parties in respect of this
document save as would arise under English law.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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