REG - Portmeirion Group - H1 2025 TRADING UPDATE

PortmeirionAnnouncement

Mon 07:00

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RNS Number : 7538R  Portmeirion Group PLC  21 July 2025

 

 

 

21 July 2025

 

Portmeirion Group PLC

(the "Group")

 

H1 2025 Trading Update

 

Group sales returns to growth

Significant disruption from US import tariffs

South Korea and International markets strong

 

Portmeirion Group PLC, the global homeware brands group, today issues a
trading update for the six months to 30 June 2025 ("H1" or "the period").

 

·    Sales up 2.8% at constant currency and up 10.8% excluding USA.

·    Good rebound in South Korea and double-digit growth in International
and Wax Lyrical

·    Proactive action taken in response to impact of USA tariffs.

 

Mike Raybould, Chief Executive, commented:

 

"The imposition of additional import tariffs in the USA at the beginning of Q2
caused immediate disruption and significant uncertainty in our largest and
most profitable market.   We have proactively implemented a number of
actions in response to these challenges and will continue to monitor the
situation closely, remaining sensitive to the wider macro/ political
uncertainty and its influence on consumer confidence.

 

We progress against our 2025/26 strategic priorities which will drive a
transformation of our business - our International and South Korean markets
are back in growth, and the UK has seen an impressive performance from Wax
Lyrical which continues to take market share."

 

TRADING OVERVIEW

Group Sales are expected to be c.£37.1m, up 1.3% year-on-year in the period
and up 2.8% in constant currency.  H1 is traditionally the Group's quieter
half.

 

North America: Sales -10.6%. Actions taken in response to tariff disruption -
early signs that retailer confidence maybe returning in recent weeks.

 

We have successfully managed our production schedules and shipments into the
USA during the tariff disruption in H1, and our customers can expect to
receive their orders significantly earlier than in prior years, ensuring our
product is in-store and available for sale at the beginning of the peak
Holiday and Christmas season.

 

In FY25 the product supplied by the Group into the USA market will be markedly
down on a like-for-like basis by volume as we have cancelled certain orders
sourced from Asia for the USA market which would be subject to higher
tariffs.  We are taking this opportunity to accelerate our Made in
Stoke-on-Trent onshoring initiative which we outlined at the time of the
Group's Annual Results on 31st March 2025, increasing the proportion of
product supplied into the USA from the United Kingdom.

 

In early March 2025, we launched a review of our USA sales strategy, and as a
result we are withdrawing or reducing supply of some of our brands to certain
value retailers who contribute low margin sales.  We will carefully manage
our supply by account and by brand, so we can better support those retail and
distribution partners who position our brands appropriately for medium-long
term growth.   We are excited to be opening our 8th Nambé store in Dallas
in July and a Ceramics pop up store in New Jersey in August.

 

United Kingdom:  Sales +3.0% due to strong performance from Wax Lyrical

Performance driven by Wax Lyrical, our home fragrance brand which grew 15.5%
and continues to see good sell through with national retailers, supported by
the expansion of listings. Our UK tableware sales declined by 8.9%, primarily
due to the timing of an initial Spode new product launch order in the prior
year and planned closure of a retail factory outlet.

 

South Korea: Sales +31.6% ongoing recovery

A strong performance, recovering from its 2024 nadir as we support key
customers with new product innovation and progress clearing the historic stock
overhang which impacted the business in 2023/24 after COVID. We are confident
that sales in South Korea will continue to recover.

 

International*: Sales +11.2% driven by new distributors in key growth target
markets and a strong pipeline of product innovation.

International sales markets are a priority for the Group and a key part of our
long-term growth strategy.

 

*International consists of over 50 separate markets excluding USA, UK, and
South Korea

 

BALANCE SHEET

Net debt on 30(th) June 2025 is expected to be £14.8m (prior year £13.4m),
marginally higher due to much earlier shipment of product into the USA market
for the Holiday and Christmas season, and the associated cost of funding
tariff payments.   Our working capital profile is seasonal, reaching a peak
in October, reducing rapidly in November and December.

 

COSTS

We continue to actively manage costs. In H1 we felt the first impact from the
UK Governments increase in National Insurance Contribution and National
Minimum Wage, and utility prices remained high throughout the period.   US
import tariffs have had an impact on international freight costs.  In
response to the imposition of US import tariffs, we have taken the opportunity
to accelerate our UK on-shoring initiative Made in Stoke-on-Trent which was
announced on 31(st) March 2025 and was scheduled to complete in 2027.  The UK
is a higher cost venue to manufacture, but this is a necessary investment of
margin and will benefit our brands over the medium-long term, particularly in
international markets.

 

OUTLOOK

We anticipate modest sales growth in H2, primarily due to short term caution
on the US market.  We anticipate the UK to be flat - low single digit growth
driven by good Wax Lyrical performance, and continued improvement in South
Korea and International markets.

 

Our Brands remain well regarded in the market, we have strong seasonal ranges,
a pipeline of new products and innovation and we are growing our brand
reach.  We launched our 2025-26 Transformation plan 3 months ago with our
Annual Results, and this is involving every member of staff across every part
of our business and has the potential to deliver significant improvements in
our performance.

 

NOTICE OF RESULTS

The Group expects to report its Interim results for the six months ending 30
June 2025 in late September 2025.

 

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, Chief Executive          +44 (0) 1782 743674
 Jonathan Hill, Group Finance Director   +44 (0) 1782 743674

 Houston:
 Kate Hoare                              +44 (0)204 529 0549    portmeiriongroup@houston.co.uk (mailto:portmeiriongroup@houston.co.uk)
 India Spencer

 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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