Thorntons PLC Strategic Analysis Assignment Example | Topics and Well Written Essays - 4000 words

Thorntons PLC Strategic Analysis - Assignment typeThorntons PLC has 230,000 employees world-wide and operates 520 factories in 82 countries. Thorntons PLC fundamental social impact is to meliorate standards of living among zillions of people through establishment of productive, sustainable economic development.Thorntons PLC brands showed the strongest growth, currently posting gross revenue close to 700 million liters in over 20 countries. Thorntons PLC leadership is concentrated in Europe (regions where economic risk is limited, incomes argon high and growth prospects are robust) through the development of strong brands, the HOD business, and acquisitions that offer real opportunities for synergy.In 1999 Thorntons PLC operated from 509 factories worldwide, 424 are in special chocolates and brittle products. Special chocolates accounted for 28% of 1999 revenues 26% chocolate and confectionery, 54% are in toffee.With a net service of 4.724 million, up 12.3 allot over last year , and with significant, broad-based improvement in all major performance indicators, Thorntons PLC looks covering fire on a record year 1999. The net profit adjustment reached 6.3 percent (5.9 percent in 1998) on consolidated sales of 74 660 million (1998 71 747 million). The trading profit of 7 914 million increased by 11.8 percent, a margin of 10.6 percent of sales (9.9 percent in 1998). EBITA (Earnings Before Interest, Taxes and Amortization) improved by 12.4 percent to 8 298 million (1998 7 382 million).These substantial improvements reflect a series of measures taken over the past years, touching virtually all activities (Mitchell, 2002). Streamlining the business portfolio, increasing operational efficiency, industrial restructuring and surface in purchasing and supply chain management enabled the Group to achieve higher profits, margins and return on invested capital. Thorntons PLC also made the necessary investments to ensure future top-line growth by investing in smart products and strengthening its brands and market shares.During the first half of 2000, Thorntons PLC achieved a significant increase in both sales and profit margins. Table shows that consolidated sales grew by 9.9 percent to 38.8 billion, with real internal growth accelerating to 4.5 percent, compared to 2.1 percent in the same period of 1999. Trading profit amounted to 4296 million. This represents 11.1 percent of sales against 9.8 percent for the 1st half of 1999. Net profit increased to 2798 million or CHF 72.7 per share, resulting in a net profit margin of 7.2 percent (5.9 percent in the first half of 1999). The strong sales performance reflects the Groups emphasis on internal growth. The margin improvements result from progress achieved in enhancing operational efficiency, the streamlining of the Groups product portfolio, industrial restructuring and some trim back raw material prices which were able to offset higher packaging costs. Internal Growth and Currencies Push Up S ales Consolidated sales, at 38.8 billion, were up 9.9 percent. At comparable structure (excluding acquisitions and divestitures) and at constant supersede rates, sales rose by 4.9 percent (see table 1).Table 1. Thorntons PLC Figures for 1999-2002Thorntons PLC Annual Report200220012000(e)1999(f)In millions of CHF (except for per share data)Consolidated sales89 16084 69881 42274 66071 747EBITA10 9409 9879 9118 7007 606as % of