Trading Statement

RNS Number:4443N
Thorntons PLC
11 July 2003


11 July 2003

SALES AND TRADING UPDATE

52 WEEKS ENDED 28 JUNE 2003


Thorntons PLC, the manufacturer, retailer and distributor of high quality
confectionery and other sweet foods, is today reporting sales figures for the 52
weeks ended 28 June 2003.


* Total company sales in the 52 weeks to 28 June 2003 were up +2.0% at
#167.1m versus #163.8m in the 52 weeks ended 29 June 2002.


* In line with our strategy of continuing to close poorly performing
stores the number of Own Shops has reduced from 395 to 389 over the year. Within
this total, the number of cafes increased from 25 to 26. The Own Shop sales
performance changed noticeably as the year progressed and in total was down from
#134.5m to #133.8m. Whilst overall like for like sales were up +0.9% for the
year, this masks a very mixed picture.


* The first half-year like for like sales were +1.6%, with a Christmas
season performance of -0.9% being more than offset by almost 6% growth in the
other 18 weeks. The second half started very strongly through Valentines Day and
up to the last week prior to Easter. At that stage like for like sales for the
second half were growing at +3.6%. From that point onwards, including the final
week of Easter, like for like sales were negative resulting in an overall second
half performance of -0.3%. This result is much weaker than we expected when we
updated the market in May, mainly due to the exceptionally hot weather in the
run up to Father's Day during the hottest June for 26 years. As a consequence,
margin has also been weak during this period with additional discounting and
stock reduction activity. Despite tight cost and cash management our results,
when released in September, will now show a profit before tax of approximately
#6.4m.


Encouraging growth from all other sales channels:


* Franchise sales at #12.3m grew by +8.8% and the number of outlets
increased to 198 from 181 last June.


* Private Label Commercial sales grew by +3.3% to #12.6m.


* Thorntons Branded Commercial sales through other retailers are
progressing well. Sales were #3.1m in the year, compared with #1.6m last year,
an increase largely based on six products sold on an exclusive basis through
Tesco until March. Since then we have gained new listings in most of the major
multiples. Our discussions with other major retailers give us confidence that we
can substantially increase the range and distribution of products over the
coming year.

.

* Gift Delivery Service continues to grow with sales up +26.2% to #5.3m.


* Royalty income from the licensed range of cakes, desserts and other
sweet foods was #0.5m against #0.2m last year.

Commenting Peter Burdon, Chief Executive said:


"Since we updated the market in May, our own shop sales and margin have
performed worse than expected, as the warmer than average weather we experienced
at Easter has continued and affected the run up to Father's Day in particular.


Whilst this is a temporary setback, given the progress we have made in the last
three years, we are confident that our strategic intent to widen the
distribution of our products and to continue the revitalisation of the retail
proposition is correct."



Preliminary Results for the full year to 28 June will be announced on Tuesday,
9th September 2003.


For further information, please contact:

Peter Burdon - Chief Executive, Thorntons PLC
                01773 540550

Martin Allen - Finance Director, Thorntons PLC
                                                01773 540550

Charles Ryland / Catherine Miles - Buchanan Communications
                                                020 7466 5000




 1   Full year sales analysis

                                           Full year sales    Full year sales
                                              2002/2003          2001/2002
                                              (52 weeks)         (52 weeks)
                                                   #m                 #m

     Own shop sales                               133.8              134.5
     Franchise                                     12.3               11.3
     Private label commercial                      12.6               12.2
     Thorntons branded commercial                   3.1                1.6
     Gift Delivery Service                          5.3                4.2
                                                -------------      -------------

                                   TOTAL          167.1              163.8
                                                -------------      -------------

 2   Comparison of 2002/2003 sales with the previous year

                                           52 weeks ending    52 weeks ending
                                             28 June 2003       29 June 2002

     Own shop sales                               (0.5)%              2.3%
     Franchise                                     8.8%              22.6%
     Private label commercial                      3.3%             (14.4)%
     Thorntons branded commercial                 93.8%              65.1%
     Gift Delivery Service                        26.2%              89.4%
                                                -------------      -------------

                                   TOTAL           2.0%               3.7%
                                                -------------      -------------

     Own shops like-for-like:                      1.6%               4.1%
     First half
     Second half                                  (0.3)%              2.9%
     Full year                                     0.9%               3.6%



   3   Changes in the retail estate can be summarised as follows


       Opening number                               395               400

       New shops                                      3                 3
       Resites                                        3                 3
       Closures and transfers to franchise          (12)              (11)
                                               -------------       -------------

       Closing number                               389               395
                                               -------------       -------------

       Franchise shops trading                      198               181








                      This information is provided by RNS
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