Estimated sales of £110 million for the full year are 4% ahead of 2021, and 4% ahead of consensus market expectations. Group sales are now 18% above pre-Covid 2019 levels.
Portmeirion Group expects FY22 pre-tax profit to be 10% above the prior year, and now ahead of 2019 levels, with improved operating margins and in line with market expectations.
Mike Raybould, chief executive, commented: “I am delighted with our continued progress particularly given the much tougher wider economic environment. The sales outperformance benefits from the retranslation of US dollar sales at a lower rate (which benefits revenue but not profitability) and also a stronger than expected seasonal trading performance in our US market and continued momentum in South Korea. Our highly experienced teams continue to manage costs and successfully navigate the challenges of global supply chain disruption and ongoing effects of the war in Ukraine.
“It is pleasing to see the benefit of the strategic and operational changes we are driving through our business. Our sales footprint is increasingly diversified, with the US our largest sales market and 75% of sales now outside the UK, higher online channel penetration and clear evidence that our unique brands continue to resonate strongly with our end customers. Portmeirion Botanic Garden celebrated its 50th year in 2022 and Spode Christmas Tree, first launched in 1938, remains a perennial US market favourite.
“Whilst we remain cautious in our outlook for 2023 given the backdrop of expected weaker consumer demand, we believe that the group is well placed for growth as conditions improve. We will continue to focus on our long-term strategy of driving growth through greater customer reach via further geographical expansion, building online channels and leveraging our brands.
“We expect to improve operating margins further in 2023 through ongoing implementation of operational efficiencies, driving operating margin towards our longer-term target of more than 13%. In addition, we look forward to a number of exciting new product launches in 2023 as we seek to further leverage our brand portfolio, including our exciting Spode tableware and giftware collaboration with British interior designer, Kit Kemp.”