Portmeirion Group’s sales for FY 2023 fell 7% compared to record 2022 sales due to stock rebalancing and macro conditions in the US and South Korea.
Sales for the company remain 11% ahead of 2019 pre-Covid levels, as sales for the full year reached £102.7 million, compared to £110.8 million in 2022.
Headline profit before tax for the year was £3 million, compared to £8 million in 2022, while net debt was reduced by 20%, driven by ongoing inventory reduction.
Sales for the UK in 2023 were £30.8 million, an increase of 9% compared to £28.3 million in 2022. North America’s sales were £42.4 million, down 13% from £48.9 million the previous year, and were impacted by retailer destocking and tough macro conditions. Portmeirion did report good Christmas sell through in the US, and still improving market share, despite a challenging environment.
Elsewhere, South Korea sales were down 19% to £21.5 million after a strong 2022. Portmeirion anticipates further reduction in the territory in 2024 H1 with the hope that sales start to normalise in the second half.
By brand, the tough North America and Asia market conditions particularly impacted Portmeirion and Nambe sales. Spode continues to grow, with sales now 42% above 2019 levels.
Looking ahead, Portmeirion Group’s targets for significant operating margin growth, include an operating margin medium term target of 10% and long term target of 12.5%.
Portmeirion plans to leverage its heritage ranges to drive growth, with new launches in the Botanic Garden tableware offering, and an expansion into bedding. Spode Christmas Tree range will also see range extension in the US and a focus on driving growth across the UK, South Korea and Europe in 2024/25.
Spode Blue Italian will also see a new contemporary Staccato range launching in the first half of this year.
The Portmeirion Minerals stoneware range launched exclusively into John Lewis in Q1 2024, and will roll out to other customers from Q2 and into Korea from Q3.
Spode’s collaboration with Kit Kemp is now in four hotels across New York and London with potential for further roll out, with listings including Bloomingdales in the US.
