PMP Portmeirion Group Plc

TIDMPMP

RNS Number : 4585M

Portmeirion Group PLC

12 January 2023

12 January 2023

Portmeirion Group PLC (the 'Group')

FY22 Trading Update

Strong second half and Christmas trading ahead of expectations

Portmeirion Group PLC, the designer, manufacturer and worldwide distributor of high quality homewares under the Portmeirion, Spode, Royal Worcester, Pimpernel, Wax Lyrical and Nambé brands, updates on full year trading for the 2022 financial year.

We are pleased to report a strong Christmas trading period with robust demand across our portfolio of consumer goods brands. As a result, FY22 sales are now expected to be at least GBP110 million, 4% ahead of 2021 and 4% ahead of consensus market expectations. Group sales are now 18% above pre-Covid 2019 levels.

We expect FY22 profit before taxation to be 10% above the prior year and now ahead of pre-Covid 2019 levels, with improved operating margins and in line with market expectations.

Mike Raybould, Chief Executive commented:

" I am delighted with our continued progress particularly given the much tougher wider economic environment. The sales outperformance benefits from the retranslation of US dollar sales at a lower rate (which benefits revenue but not profitability) and also a stronger than expected seasonal trading performance in our US market and continued momentum in South Korea. Our highly experienced teams continue to manage costs and successfully navigate the challenges of global supply chain disruption and ongoing effects of the war in Ukraine.

It is pleasing to see the benefit of the strategic and operational changes we are driving through our business. Our sales footprint is increasingly diversified, with the US our largest sales market and 75% of sales now outside the UK, higher online channel penetration and clear evidence that our unique brands continue to resonate strongly with our end customers. Portmeirion Botanic Garden celebrated its 50th year in 2022 and Spode Christmas Tree, first launched in 1938, remains a perennial US market favourite.

Whilst we remain cautious in our outlook for 2023 given the backdrop of expected weaker consumer demand, we believe that the Group is well placed for growth as conditions improve. We will continue to focus on our long term strategy of driving growth through greater customer reach via further geographical expansion, building online channels and leveraging our brands. We expect to improve operating margins further in 2023 through ongoing implementation of operational efficiencies, driving operating margin towards our longer-term target of more than 13%. In addition, we look forward to a number of exciting new product launches in 2023 as we seek to further leverage our brand portfolio, including our exciting Spode tableware and giftware collaboration with British interior designer, Kit Kemp."

The Company expects to announce preliminary results for the year ended 31 December 2022 on 23 March 2023.

Notes: This announcement contains inside information for the purposes of the retained UK version of the EU Market Abuse Regulation (EU) 596/2014 ("UK MAR").

Enquiries:-

 
 Portmeirion Group PLC: 
 Mike Raybould              +44 (0) 1782        mraybould@portmeiriongroup.com 
                             743443 
 Chief Executive 
  David Sproston              +44 (0) 1782        dsproston@portmeiriongroup.com 
                              743443 
 Group Finance Director 
 Hudson Sandler: 
 Dan de Belder              +44 (0) 207 796     ddebelder@hudsonsandler.com 
                             4133 
 Nick Moore                                     nmoore@hudsonsandler.com 
 Panmure Gordon 
  (Nominated Adviser and      +44 (0) 207 886 
  Broker):                    2500 
 Freddy Crossley            Corporate Finance 
 Rupert Dearden             Corporate Broking 
 
 
 
 Singer Capital Markets      +44 (0) 207 496 
  (Joint Broker):            3000 
 Peter Steel               Investment Banking 
 Asha Chotai 
 

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END

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January 12, 2023 02:00 ET (07:00 GMT)

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