Insider Media Limited

Pre-tax profits at chocolatier Thorntons declined 8.5 per cent during its latest half-year results to 8 January. The Derbyshire-based company attributed the drop to adverse weather conditions in the second quarter, and supply chain disruption which cost an estimated £500,000. Despite an increase in sales of 4.8 per cent during the six month period, the chocolatier said it would be cautious about its own store division after a “weak” trading stage.

Thorntons admitted that since the period end trading had been “challenging”. Revenues were up to £133.5m, a 4.8 per cent increase on the comparable period the year previous, in which sales of £127.4m were secured.

However, pre-tax profits were down from £9.1m the year previous to £8.3m.

The company’s own branded stores, sales declined 5.9 per cent to £74.1m, down from £78.8m the previous year. Like-for-like sales declined 5.2 per cent.

Thorntons said that a number of its advent calendars performed well over the Christmas period, which saw sales increase 44 per cent. Sales of selection packs also increased by 17 per cent.

Over the six month period, nine of Thorntons own stores closed, three of which were resited. The company now operates 371 own stores.

Despite disappointing own store sales, website revenues remained strong for the company. It’s online venture Thorntons Direct experienced sales growth of 8.5 per cent to £6.4m.

John von Spreckelsen, Thorntons' chairman, said: "The decline in profit before tax was caused by a combination of gross profit margin decline, which occurred due to changes in the sales channel mix and some discounting, as well as weather related impacts in Q2 on sales and disruption to the supply chain.

"Looking forward, we believe that we are well placed to continue to grow our commercial, franchise and Thorntons Direct operations. Trading in our own stores will remain difficult, however, we are entering a period when a significant number of our own store leases will be approaching renewal. This will provide the opportunity to change the size and shape of the own store portfolio.

"Since the second quarter trading statement on 13 January 2011, own store trading on the high street has been weak. As a result the board is now more cautious about own store trading for the remainder of the current financial year and including the important trading periods of Mothers' Day and Easter. We expect commercial sales and Thorntons Direct to continue to grow.”