TIDMTHT

RNS Number : 7693X

Thorntons PLC

16 January 2014

16 January 2014

THORNTONS PLC

("Thorntons" or "the Company")

SECOND QUARTER TRADING UPDATE

Thorntons today reports an increase in total Company sales of 6.3% to GBP93.1 million for the 14 weeks up to and including 11 January 2014.

 
                         Q2        Change 
  Sales GBPm         14 Weeks to      % 
                      11/01/14 
-----------------  -------------  ------- 
 FMCG Division          47.0       +17.1% 
-----------------  -------------  ------- 
 Retail Division        46.1       (2.9)% 
-----------------  -------------  ------- 
 Total Company          93.1       +6.3% 
-----------------  -------------  -------

FMCG Division

Sales increased by 17.1% to GBP47.0 million demonstrating the continued strength of the Thorntons brand with our commercial partners.

-- UK Commercial sales rose by 21.1% as a result of a good Christmas performance driven by excellent sales of our seasonal specialities, a broadening of sales across our Commercial customer base, and early spring deliveries.

-- International sales decreased by 15.5% in the quarter although growth for the half year remained positive at 9.2%. At less than 2% of total Company sales, international sales remain a small part of the business.

Retail Division

Sales declined by 2.9% to GBP46.1 million reflecting 36 store closures compared to the same period last year, in line with our strategy. We closed seven stores in the period which resulted in 281 Own Stores at the end of the quarter.

   --       Like-for-like sales increased by 3.5%. 
   --       Consumer Direct sales delivered good growth, increasing by 27.0%.

-- Franchise sales declined by 3.1% in the quarter due to timing of orders, although grew by 5.0% over the half year.

Jonathan Hart, Thorntons' Chief Executive, commented:

"Our performance over this important period demonstrates continued good progress in the transformation of our business. We are pleased that both our operating divisions delivered positive results with strong sales in our FMCG division and encouraging like-for-like growth in our Retail division. Customer response to our new seasonal lines, in particular our Advent calendars and our Snowman licensed range, exceeded our expectations. We also saw good growth in our core boxed chocolate ranges, notably through our refreshed Classics selections.

"As expected, economic conditions remain challenging for many of our customers and the market overall was very competitive. As such we continue to plan accordingly. These results are further positive evidence of the actions we have taken over the past two and a half years to rebalance our business and revitalise our great brand. We are confident in our plans for the key spring seasons, in particular Easter. Our current outlook for the financial year remains in line with market expectations.**"

 
 Divisional Sales GBPm      Q1    Change    Q2    Change    H1     Change%* 
                                    %*              %* 
------------------------  -----  -------  -----  -------  ------  --------- 
 FMCG Division             23.8   +11.0%   47.0   +17.1%   70.8     +15.0% 
------------------------  -----  -------  -----  -------  ------  --------- 
 Retail Division           23.2   (5.7)%   46.1   (2.9)%   69.3     (3.8)% 
------------------------  -----  -------  -----  -------  ------  --------- 
 Total Company             47.0   +2.1%    93.1   +6.3%    140.1    +4.8% 
------------------------  -----  -------  -----  -------  ------  --------- 
 
 Like-for-like (Retail)           (0.4)%          +3.5%             +2.2% 
------------------------  -----  -------  -----  -------  ------  ---------

Interim results to be announced on Monday 3rd March 2014.

For further enquiries please contact:

Nadja Vetter / Emma Crawshaw / Georgina Hall, Cardew Group. T: 020 7930 0777

* Due to divisional restructuring of Thorntons Direct, elements of which are now integrated into the FMCG Division, the Q1 prior year comparative figures for the Retail Division have been reduced by GBP0.3m and Q2 by GBP1.1m, with compensating adjustments made to the prior year FMCG figures.

   **              Consensus is GBP7.4m pre-exceptional PBT at 16 January 2014.

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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