UK chocolatier Thorntons has posted a steep increase in half-year profits, which rose by almost a quarter in the 28 weeks to 9 January.
The company, which booked a 24.6% gain in profits, said its results were boosted by higher demand for its own-brand chocolates and a reduction in discounting.
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Profits increased to GBP9.1m (US$14.4m) in the period, up from GBP7.3m last year. Gross margins increased 1.6% year-on-year to 50.8%.
Overall, the group reported a 0.7% dip in sales, which fell to GBP127.4m. However, Thorntons revealed that demand for its own-label chocolates increased by 5.5%.
“We expect to be able to continue to improve our performance in the second half, which is historically loss-making,” said chief executive Mike Davies.
According to Davies, the group intends to focus on product development to drive sales in the summer months, which traditionally see a big fall off in revenue.
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By GlobalData“We are in the process of adding several products to our offering and have just launched the new Easter range in our stores. Going forward we will continue to focus on reducing our dependency on Christmas by investing in products that drive sales in the traditionally quieter summer months. We therefore expect to be able to continue to improve our performance in the second half, which is historically loss-making,” he said.
