REG - Portmeirion Group - Trading Update

PortmeirionAnnouncement

12/01/2023 07:00

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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 £110 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 743443    mraybould@portmeiriongroup.com
 Chief Executive

 David Sproston                    +44 (0) 1782 743443    dsproston@portmeiriongroup.com
 Group Finance Director

 Hudson Sandler:
 Dan de Belder                     +44 (0) 207 796 4133   ddebelder@hudsonsandler.com
 Nick Moore                                               nmoore@hudsonsandler.com

 Panmure Gordon

 (Nominated Adviser and Broker):   +44 (0) 207 886 2500
 Freddy Crossley                   Corporate Finance
 Rupert Dearden                    Corporate Broking

 

 Singer Capital Markets

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

 

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