Thorntons grows profits as margins improve
Thorntons has reported significantly improved profitability mainly due to lower levels of discounting during the period before Christmas.
Profit before tax in the 28 weeks to 9 January increased by 24.6 per cent to £9.1m (2009: £7.3m) on sales of £127m, down from £128.4m. Sales of Thorntons' branded products, excluding private label products, across all channels increased by 5.5 per cent. Gross margins increased 1.6 per cent year on year to 50.8 per cent.
"We are in the process of adding several products to our offering and have just launched the new Easter range in our stores. Going forward we will continue to focus on reducing our dependency on Christmas by investing in products that drive sales in the traditionally quieter summer months. We therefore expect to be able to continue to improve our performance in the second half, which is historically loss-making," chief executive Mike Davies said.
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