TIDMPMP
RNS Number : 9139Z
Portmeirion Group PLC
17 January 2024
17 January 2024
PORTMEIRION GROUP PLC
('the Group')
FY23 Trading update
Good Christmas trading period and full year performance in line
with market expectations
Portmeirion Group PLC, the owner, designer, manufacturer and
omni-channel retailer of leading homeware brands in global markets,
provides an update on its trading for the year ended 31 December
2023.
FY23 performance
We are pleased to report a good Christmas trading period with
robust demand across our portfolio of consumer goods brands. As a
result, FY23 sales are now expected to be at least GBP102 million,
marginally ahead of consensus market expectations. This is 10%
above pre-Covid 2019 levels but lower than FY22's record results as
anticipated. We expect FY23 profit before taxation to be in line
with underlying consensus market expectations.
Sales in North America and South Korea were down year on year
due to the impact of weaker consumer sentiment and de-stocking by
our major retail customers. However, we are encouraged by stronger
consumer demand through Q4 for our key Christmas ranges. Sales from
our Spode brand continued to grow, with Spode Christmas Tree sales
again increasing, driven by both additional store space and
extensions to the range.
Our UK ceramic sales were flat YOY but we saw a strong seasonal
trading period, particularly from our ecommerce orders, which were
up 9% for the final eight weeks of FY23 compared to the prior
year.
Ceramic sales in our rest of world markets (ROW), a key
strategic growth area, were up 13% YOY and sales in Wax Lyrical,
our home fragrance division, were up 24% YOY driven by new listing
wins in the UK grocery channel and the full year impact from the
acquisition of the AromaWorks London brand.
Following our focus on reducing inventory we are pleased to have
seen a reduction YOY in both net debt and inventory as at the year
end.
FY24 Outlook
Following a positive Christmas performance, we expect sales to
return to growth in 2024 YOY alongside a healthy operating margin
improvement compared to 2023. However, we expect 2024 to be a
challenging year due to ongoing macro uncertainty with customers
remaining cautious in relation to H1 order flow, in particular in
the US and Korean markets. In addition, we expect to continue to
incur higher interest costs during the year given current
rates.
Mike Raybould, Chief Executive , commented :
"Although consumer market conditions have been significantly
more challenging in 2023, we are encouraged by our strong Christmas
trading performance in the UK and US, the continued growth in our
ROW markets and the sales rebound and new business wins in our home
fragrance division.
We are excited about the opportunity to further expand our
customer base, both within our core markets but also through
leveraging our well-known brands across ROW markets. Within our key
US market, we are delighted to be opening a new enlarged permanent
showroom this week at the 2024 Atlanta Gift Show. This exciting new
space will showcase new product introductions across our brand
portfolio to national, regional, and independent retailers from
across the US and Canada.
Whilst we expect market conditions to remain challenging in the
first half of 2024, particularly in the US and South Korea, we
expect to see growth across the full year and we are confident in
our long-term strategic progress and the market share gains we are
making."
The Company expects to announce preliminary results for the year
ended 31 December 2023 in late March 2024.
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").
Portmeirion Group PLC:
Mike Raybould, Chief Executive +44 (0) 1782 mraybould@portmeiriongroup.com
743 443
David Sproston, Group Finance +44 (0) 1782 dsproston@portmeiriongroup.com
Director 743 443
Hudson Sandler:
Dan de Belder +44 (0) 207 796 portmeirion@hudsonsandler.com
4133
Nick Moore
Emily Brooker
Shore Capital:
(Nominated Adviser and Joint +44 (0) 207 408
Broker): 4090
Patrick Castle Corporate Advisory
Lucy Bowden
Malachy McEntyre Corporate Broking
Isobel Jones
Singer Capital Markets +44 (0) 207
(Joint Broker): 496 3000
Peter Steel Investment Banking
Asha Chotai
NOTES TO EDITOR:
Portmeirion Group PLC is a leading, omni-channel British
ceramics manufacturer and retailer of leading homeware brands.
Based in Stoke-on-Trent, United Kingdom, the Group owns six
unrivalled heritage and contemporary brands, with 750+ years of
collective heritage; Portmeirion, Spode, Royal Worcester,
Pimpernel, Wax Lyrical and Nambé.
The Group serves markets across the world, with global demand
driven by diversified international markets including the key
geographies of the US, UK and South Korea.
Portmeirion Group has a proven capital-light, well developed and
self-funded growth strategy focused on building a wider customer
base and growing the sales footprint of its brands, through:
-- Building and growing international sales markets
-- Developing online sales channels in core markets
-- Designing and launching new product to widen appeal and take market share
-- Leveraging brands and extensive product ranges
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END
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January 17, 2024 02:00 ET (07:00 GMT)
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