Reporting its full-year results, the confectionery business said investment in its factories was paying off, increasing production by 9% to 22Mkg in the past year.
The company said it had managed to shrug off the effects of soaring cocoa prices by increasing efficiency, passing on price increases and mitigating risks on commodity purchases.
‘Increased number of employees’
“In order to enable the business to progress with its strategy we have increased the number of permanent employees in our factories to 973, an increase of 59 over the year,” Thorntons stated.
“In order to further improve capability, productivity and product skills across our teams in supply chain, we have delivered an unprecedented level of training over the past year …”
The training drive had focused on NVQ apprenticeship programmes in food manufacturing excellence and business improvement techniques, including lean manufacturing, it said.
‘New warehousing and distribution facility’
The firm had extended its logistics contract with DHL in June, adding: “Our commitment to them will result in their investment in a brand-new warehousing and distribution facility, which will significantly increase capacity and productivity, as well as enhance customer service. This new warehouse will be brought into service progressively over the autumn of 2014.”
Thorntons reported pre-tax profit up a whopping 60.4%, from £4.7M to £7.5M in the 52 weeks to June 28 on revenue up 0.6%, from £221.1M to £222.4M.
The results highlighted the success of a three-year strategy to transform Thorntons into an international, multi-channel fast moving consumer goods business, said ceo Jonathan Hart.
“We are pleased with these results which indicate continued strong recovery in our profitability and are testament to the strategy we put in place just over three years ago. The challenging environment and subdued consumer sentiment make our progress all the more notable.”