REG - Portmeirion Group - FY 2025 Trading Update

PortmeirionAnnouncement

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RNS Number : 4063R  Portmeirion Group PLC  03 February 2026

3 February 2026

 

Portmeirion Group PLC

(the "Group")

 

FY 2025 Trading Update

 

Improving trends in H2, underpinned by encouraging seasonal sales performance

 

Portmeirion Group PLC, the global homeware brands group, today issues a
trading update in respect of its financial year ended 31(st) December 2025
("FY 2025").

 

Mike Raybould, Chief Executive, commented:

 

"We took bold decisions in April to position our business for long term
growth, resetting certain customer relationships, changing how we work and
reinvigorating our approach.  We have made several key senior strategic
appointments in Q4 across Product and Sales roles and in US leadership; all
are making a positive impact and give us confidence that we will grow and
capture the opportunities ahead.

 

Despite the material disruption of the significant tariffs in the US, we were
successful in getting our customers into stock of our seasonal ranges earlier
than last year and have seen strong sell through, ahead of last year, over the
festive season.

 

South Korea has delivered strong growth; UK tableware had an improved H2
performance and international markets are on an improving trend.

 

Our 'Made in Stoke-on-Trent' product has resonated well with customers,
especially in the US, South Korea, and international markets. It is core to
positioning our premium brands towards higher value customers and channels and
will be a focus in our marketing in 2026."

 

TRADING OVERVIEW

 

Group Sales in FY 2025 are expected to be c.£91m, up 1% year-on-year at
constant currency. Excluding the US market, impacted by tariffs, sales were up
8%.

 

As outlined in our transformation plan, the Group has made significant changes
over the year to position the business for long-term growth. These have
included proactive commercial changes in the US product offer and
distribution, reduction of excess / end of line inventory, some initial margin
investment in accelerating our Made in Stoke-on-Trent onshoring initiative, as
well as some upfront investment in future growth opportunities.

 

As expected, the short-term impact of these measures when combined with the
previously disclosed impact from the US import tariffs in what is the Group's
largest and most profitable market, and significantly higher energy costs,
National Insurance and minimum wage increases, will result in a headline loss
before tax of c.£3.5m.

 

The Group's net debt position was £17.5m at 31 December 2025 (FY24: net debt
of £12.1m), reflecting the net loss, the significant additional cash cost of
importing product into the US and year end US stock values impacted by
tariffs. These offset the progress we made in reducing excess inventory in
2025 and our improved cash collection. Working collaboratively with our sole
lender Barclays, we revised our RCF covenants in 2025 to provide the headroom
and flexibility for the Group to deliver our transformation plan.

 

 

SALES PERFORMANCE ANALYSIS

                      % change (constant currency)
 Group Sales          1%
 North America Sales  -7%
 UK                   1%
 South Korea          26%
 International        14%

 

North America: Successful seasonal sell-through

·    Tariff disrupted sales were down 7% year-on-year, a good performance
as we proactively withdrew our Spode brand from key off-price channels and
cancelled production of some China made seasonal SKUs. These actions are
long-term positive for our brands but reduced sales by c.10%.

·    Strong sell through growth on both our UK-made Spode 'Christmas Tree'
tableware and on key like-for-like Christmas lines on both a volume and value
basis was encouraging and reflects the success of our refreshed product
strategy.

·    Actions taken to reset US cost base in 2025, with a first full year
impact in 2026.

 

United Kingdom: Improving H2 tableware sales performance

·   Improved performance in the second half of the year in our UK
tableware business, with growth of 6%, with strong double-digit growth in our
own ecommerce channel.

·    Wax Lyrical, our home fragrance brand, grew by 2% over the full year,
a disappointing outcome after a strong H1. H2 was weaker due to less
promotional space in the grocery channel in Q4. However, we retained key
national account listings and expect growth to resume in this division in
2026.

 

South Korea: Strong sales growth

·    Growth 26% - a strong rebound in sales from its 2024 low.

·    We supported key customers with new product innovation and are on
track to clear customer excess inventory in 2027.

 

International(1): Pleasing growth aided by robust product innovation pipeline

·    Growth of 14% aided by new product innovation including the Q4 launch
of a new Botanic Garden Cookware range.

·    We were pleased to see progress in markets including Malaysia,
Australia and Europe

 

STRENGTHENING OUR LEADERSHIP TEAM

 

We made several important appointments to our Global Leadership Team in Q4.
Michael Scheepers joined as Group Brand and Commercial Director, Victoria
Brabender as our first ever Product Strategy Director, and Sam Pearce was
promoted to Chief Operating Officer. They bring a strong mix of commercial
expertise and outstanding calibre of homewares experience, with both external
hires joining from senior roles within internationally renowned cookware and
consumer brands. In the US, Michael Close was appointed President of Sales,
North America.  The Group also made two further senior US sales hires in
January 2026.

 

 

OUTLOOK

 

We had a strong end to the year, with good sell through of our key seasonal
ranges across our most important markets.  With initiatives already taken,
and the improved trading seen across many parts of the Group during the second
half, we are confident we can return to growth in the year ahead. Our strong
trade show in Atlanta in January further reinforces this confidence.

 

We are focused on reducing end of line / excess inventory - it is critical
this is done responsibly to reduce grey market activity, and we have committed
to work with valued partners to ensure we control the process and do not harm
our long-term brand objectives.

 

We are excited to start 2026. We are fast tracking key new global product
launches under our Spode and Portmeirion brands. We will continue the work we
began in 2025 ensuring we have the right strategic relationships, distribution
model, and customers in every market, to maximise the long-term potential of
our brands and enhance their brand equity.

 

(1) International consists of over 50 separate markets excluding USA, UK, and
South Korea

 

ENQUIRIES:

 

 Portmeirion Group PLC
 Mike Raybould, Chief Executive          +44 (0) 1782 743674
 Jonathan Hill, Group Finance Director   +44 (0) 1782 743674

 Houston

 (PR advisers)
 Kate Hoare                              +44 (0)204 529 0549    portmeirion.corporate@houston.co.uk
                                                                (mailto:portmeirion.corporate@houston.co.uk)
 Charlie Barker                          +44 (0)773 303 2695

 Shore Capital                           +44 (0) 207 408 4090

 (Nominated Adviser and Joint Broker):
 Patrick Castle                          Corporate Advisory
 Lucy Bowden

 Malachy McEntyre                        Corporate Broking

 Isobel Jones

 

 Singer Capital Markets

 (Joint Broker):         +44 (0) 207 496 3000
 Peter Steel             Investment Banking
 Asha Chotai

 

NOTES TO EDITOR:

Portmeirion Group PLC is a global homeware brands group based in
Stoke-on-Trent, England. The Group owns six unrivalled heritage and
contemporary brands: Spode, Portmeirion, 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 North America, UK, and South Korea.

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