Portmeirion Group, has provided an update on its trading for the year ended 31 December, 2023.
FY23 sales are expected to be at least £102 million, following a good Christmas trading period with strong demand across all Portmeirion consumer goods brands. This figure is 10% above pre-Covid 2019 levels, but lower than FY22’s record results. The group expects the full year profit before tax to be in line with underlying market expectations.
Sales in North America and South Korea were down year-on-year, due to the impact of weaker consumer sentiment and de-stocking by major retail customers. Portmeirion was, however, encouraged by stronger demand in Q4. Sales for Spode continue to grow, with Spode Christmas Tree sales again increasing.
UK ceramic sales were flat YOY, but the group saw a strong seasonal trading period, particularly from ecommerce orders, which were up 9% for the final eight weeks of the year.
Ceramic sales in the rest of the world markets, a key strategic growth area, were up 13% YOY.
For FY24, Portmeirion expects sales to return to growth, alongside a healthy operating margin improvement compared to 2023. However, the group expects 2024 to be a challenging year due to ongoing macro uncertainty with customers.
Mike Raybould, chief executive, commented: “Although consumer market conditions have been significantly more challenging in 2023, we are encouraged by our strong Christmas trading performance in the UK and US, the continued growth in our ROW markets and the sales rebound and new business wins in our home fragrance division.
“We are excited about the opportunity to further expand our customer base, both within our core markets but also through leveraging our well-known brands across ROW markets. Within our key US market, we are delighted to be opening a new enlarged permanent showroom this week at the 2024 Atlanta Gift Show. This exciting new space will showcase new product introductions across our brand portfolio to national, regional, and independent retailers from across the US and Canada.
“Whilst we expect market conditions to remain challenging in the first half of 2024, particularly in the US and South Korea, we expect to see growth across the full year and we are confident in our long-term strategic progress and the market share gains we are making.”
