Resilient performance with total sales down 3% on tough comparator (record 2022 sales) despite diminished consumer sentiment
North America down 13% reflecting previously stated customer de-stocking
Robust sales performance outside of North America
Profit: £nil due to high operational gearing drop through on sales - Group traditionally second half weighted
Christmas order books ahead of prior year and started to ship per forecasts
Maintaining focus on tight control of operating costs
Operating margin medium-term target of 10% remains viable and long-term target of 12.5%
Interim dividend maintained at 3.50p
2
OVERVIEW & H1 2023 RESULTS
H1 2023 performance
Sales decline 3% versus record 2022 sales due to increased caution on ordering from US retailer customers
Sales remain +26% ahead of 2019 pre-Covid levels
Peak inflation cost in inventory including container freight - subsides H2 2023/2024
Small underlying profit increase across UK/ROW/South Korea/Wax Lyrical
Interim dividend maintained
Net debt increase due to higher working capital - expected to improve by
Profit Walk
2.0 0.2 (1.4)
£m's
(0.5)
(0.3)
-
H1 2022
UK/ROW profit N America profit
Interest
Other Income
H1 2023
improvement
reduction
2023
2022
2019
2023 v
2023 v
2022
2019
£m
£m
£m
Change
Change
Revenue
44.1
45.5
34.9
-3%
+26%
Headline* profit
0.0
2.0
0.5
-100%
-100%
before tax
Headline*
operating profit
1.6%
4.3%
1.7%
-2.7%
-0.1%
margin
Headline* EPS
(0.12p)
12.00p
3.96p
-101%
-103%
Dividends
3.50p
3.50p
8.00p
-
-4.50p
Net debt
(15.0)
(6.8)
(5.8)
-8.2
-9.2
*Headline numbers exclude exceptional items; acquisition and restructuring costs.
2023
3
OVERVIEW & H1 2023 RESULTS
Strong balance sheet maintained
Net assets increased by 1%
Significant facility headroom
Net debt £15.0 million, December 23 forecast reduction of 30% year on year
Like-for-likeinventory reduction of 5% with more progress to come in H2
Pension scheme small surplus
Inventory Walk
1.4
(1.9)
1.5
(5.1)
41.1
£m's
37.0
Dec 2022
AromaWorks
Chrismas in Transit H1 LFL reduction H2 LFL reduction Dec 2023 Forecast
2023
2022
2019
2023 v
2023 v
2022
2019
£m
£m
£m
Change
Change
Non-current assets
41.0
38.9
30.3
5%
35%
Inventory
42.1
42.6
24.2
-1%
74%
Trade & other
17.3
14.0
12.9
24%
34%
receivables
Cash
1.5
3.2
2.2
-53%
-32%
Total current
60.9
59.8
39.3
2%
55%
assets
Trade and other
-22.3
-27.0
-16.7
-17%
34%
payables
Borrowings
-16.4
-10.0
-8.0
64%
-105%
Pension scheme
0.6
1.4
0.6
-57%
-
Net assets
63.8
63.1
45.5
1%
40%
2023
4
OVERVIEW & H1 2023 RESULTS
Sales analysis by market
• US/Canada impacted by retailer destocking
2023
2022
2019
2023 v
2023 v
Sales by country
2022
2019
• UK sales +2% despite weakened consumer sentiment
£m
£m
£m
Change
Change
• South Korea growth due to timing, new ranges, increased online
US
12.9
14.1
8.5
-9%
52%
distribution - expect slower H2 in department store channel
UK
11.7
11.5
12.3
2%
-5%
• Total ROW ceramic markets +10% (excluding Russia/Eastern
South Korea
14.3
13.4
10.5
7%
36%
Europe) - part of long term strategy
Canada
1.5
2.6
0.5
-42%
200%
Europe
1.5
1.4
1.5
7%
-
Australia
0.1
0.7
0.3
-86%
-67%
China/Far East
1.5
0.6
0.1
150%
1400%
Middle East
0.1
0.4
0.6
-75%
-83%
Russia/Eastern
-
0.2
0.4
-100%
-100%
Europe
Other
0.5
0.6
0.2
-17%
150%
Total
44.1
45.5
34.9
-3%
26%
2023
5
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Disclaimer
Portmeirion Group plc published this content on 27 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 September 2023 14:33:14 UTC.
Portmeirion Group PLC is a United Kingdom-based company that is focused on the homeware sector. The Company is the owner, designer, manufacturer, and omni-channel retailer of homeware brands in global markets. The Company manufactures earthenware from its factory in Stoke-on-Trent and home fragrance at its factory in the Lake District. It also sources a range of products from around the world, which includes bone China and porcelain tableware, wood, glass and metal alloy giftware, and other associated homeware products. Its business is built around six international homeware brands, which include Portmeirion, Spode, Wax Lyrical, Royal Worcester, Pimpernel, and Nambe. The Company sells its products in various countries, including the United Kingdom, the United States, Canada, Europe, the Middle East, and the Far East. It sells its products via online channels, including its own United Kingdom and United States Websites and through a network of distributors, agents and own-retail stores.