Thorntons Chocolates post 36% profit drop

Speciality chocolate maker Thorntons posted a 36 per cent drop in full year profits today.

Speciality chocolate maker Thorntons posted a 36 per cent drop in full year profits today.

Pre-tax profit crumbled to £5.2 million (€7.4 million) in the year to June 24th, from £8.1 million the previous year.

Thorntons said like-for-like sales fell 3.7 per cent for the year, although the performance had improved in the second half of the year when like-for-like sales fell 1.8 percent.

"In terms of current trading, the hot weather in July resulted in a decline in chocolate sales, partly offset by high ice cream sales. In August and early September, sales were in line with our expectations," Chairman John von Spreckelsen said in a statement.

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The group, which also has a number of stores in Ireland, said sales at the group's 367 UK stores fell 5.3 per cent to £127 million over the year largely due to a bad Christmas and a reduction in the number of outlets.

Thorntons said it would invest £1 million on upgrading and refurbishing its shops. It also planned to look at buying new sites for stores in the southeast of England as well as cafes in retail parks.

On a positive note, demand for chocolates over the company's Internet site grew 6.4 per cent over the past 12 months to £5.5 million.

The company also announced chief executive Peter Burdon is to step down; Mr Von Spreckelsen said Mr Burdon would stay on as chief executive until a successor was appointed.