Portmeirion Group says its sales performance reflects challenging global economic backdrop, but is cautiously optimistic for 2025.
Portmeirion Group has reported its preliminary results for the year ended 31 December 2024. During the year, revenue fell 11.2% year-on-year to £91.2m, compared to £102.7m in 2023. Profit before tax was £1.1m, down 63.3% from £3m in 2023.
UK sales were up 5% to £32.4m compared to £30.8m in 2023. This was driven by a strong performance in Wax Lyrical home fragrance. Ceramic sales in the UK were down 9% due to a much tougher consumer spending backdrop. Sell through in the key Q4 period was strong and up on last year for most of the group’s major accounts.
Mike Raybould, chief executive, Portmeirion Group said: “2024 was a disappointing year and our financial performance overshadowed good growth in our Spode brand and improved profitability in the US, our largest sales market. Our customers reported strong sell through of our collections during the key Christmas period and Wax Lyrical, our home fragrance business also saw strong top and bottom-line growth.
“Action is being taken across our operations to position the business for sustainable future growth and we are moving forward with clear priorities to return our established markets to growth, strengthen our balance sheet, invest in our premium brands and develop new international markets.
“Trading in 2025 has started positively and we are cautiously optimistic at this early point in the year, mindful of the headwinds many businesses are facing in this uncertain economic climate.”
The group said that the drop in sales also reflected the significant downturn in its South Korean market. Revenue excluding this territory and a constant currency, was broadly flat on the prior year, down 1%.
Looking ahead, the group said that 2025 has started positively. The board remains mindful of the challenges ahead in what continues to be an uncertain economic environment and with a significant Q4 weighting for the business.
Also highlighted in future plans is a move to more UK manufacturing. Currently around 26% of the group’s branded tableware is made in the Stoke-on-Trent factory and the intention is to increase this over the next two years.
Peter Tracey, non-executive chairman, commented: “2024 was undoubtedly a disappointing year. We have started 2025 positively and are taking a number of actions across our operations to position the business for sustainable future growth through our transformation plans.
“We are mindful of the challenges we need to overcome in an uncertain economic environment. From a global perspective we will continue to closely follow the evolving situation with regards to new or increased import tariffs between the US market and other parts of the world.
“From a UK perspective, it remains disappointing that UK energy costs continue to be significantly higher than the rest of the world, impacting the general competitiveness of UK manufacturing on the world stage. Both these challenges are outside of our control, but we continue to monitor them closely and take mitigating action in response where appropriate.”
During 2024, Spode delivered its fourth consecutive year of growth, with sales up 5% at constant currency and now up around 45% since 2019. The Wax Lyrical home fragrance brand also saw a return to profitability with sales up 25%.
