Portmeirion : 2023 Interim ResultsSeptember 2023

2023 Interim Results

September 2023

2023

OVERVIEW & H1 2023 RESULTS

H1 23 overview

• 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