Thorntons today (10 September) said it expected the US to become its largest overseas market as the UK chocolate maker continues to build its international presence.
The company makes the bulk of its sales in the UK – only 3% of its revenue is generated internationally – but the business is looking to grow in overseas markets.
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In the year to 28 June, Thorntons’ total revenue inched up 0.6% to GBP222.4m (US$357.9m) Its sales outside the UK grew 4.9% to GBP6.4m.
Alongside the publication of Thorntons’ full-year results, which included higher profits, chief executive Jonathan Hart said it was upbeat about its prospects overseas – and revealed the projections for the US.
“Over the past year we have seen a positive response from prospective customers in the United States resulting in some modest, but nevertheless encouraging, listings. We anticipate that this market is likely to become the largest international market for us over the coming year,” Hart said. “Australia continues to be a key focus, along with South Africa and the UAE.”
Thorntons’ FMCG division – which includes sales through UK supermarkets and c-stores – saw revenue grow 7.8% to GBP111m, meaning the unit now accounts for over half the company’s turnover. The company said moves to expand listings in the convenience store sector helped “protect us from some of the challenges experienced by our mainstream grocery customers”.
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By GlobalDataSales from Thorntons’ own stores dropped 7.4% as it closed 36 outlets. Like-for-like sales from the whole retail division, which includes franchise and online sales, grew 1.1%.
Net profit was up 71.1% at GBP5.3m. Operating profit increased 21.7% to GBP8.6m.
