Thorntons diversifies to improve sales - Thorntons PLC management strategies, and full year profit results - Brief Article - Statistical Data Included

Eurofood, Sept 27, 2001

UK chocolate retailer and manufacturer Thorntons is to implement a series of new marketing strategies, as part of its three-year revival plans.

The plans include a move into the take-away coffee and pastry market, to be sampled at nine pilot outlets throughout the country. If successful, Thorntons could expand the project to 400 of the company's outlets over the next three years. There are also plans to double the number of Cafe Thorntons to 48 by 2004.

Furthermore, Thorntons plans to distribute a new range of branded cakes, desserts and biscuits. Initially five lines will be available on sale in J. Sainsbury from September, with additional listings also agreed with J.Sainsbury, Safeway and Asda.

Other strategies involve improving store environment, product range and style of service as well as increasing distribution of Thorntons products by making impulse bars available in grocery outlets.

Preliminary results for the 53 weeks ending 30 June 2001 showed full year profits before tax were down 7.6% at 6.1m [pounds sterling] (3.82m [European Dollar]) whilst turnover was up 4.2% at 159.9m [pounds sterling]. Net debt was reduced by 7.8m [pounds sterling] over the 53-week year, and now stands at 44.5m [pounds sterling].

Thorntons full-year results ending 30 June 2001 (m [pounds sterling])

                       2001 (53 weeks)   2000 (52 weeks)

Turnover                    159.9             153.3
Operating profit             10.1              10.6
Profit before tax             6.1               6.6
Operating cash flows         22.8              20.8
Net debt                     44.5              52.3

Source: Thorntons

The overall progress made by the company was summed up by CEO Peter Burdon. "We have made sound progress with the promise of much to come. There are no quick fixes an we are only one year into our turnaround." The company's vision is to become. `The UK's leading retailer and distributor of sweet special food'.