In This Article:
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Sales: GBP36.6 million, a 17% decline from the first half of 2023.
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Sales Excluding South Korea: Up 5% on a constant currency basis.
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US Market Sales: Up 5% in constant currency.
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UK Market Sales: Up 11%.
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South Korea Sales: Down 61%.
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Profitability: GBP2 million loss for the first half.
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Interim Dividend: 1.5p, with full-year guidance at 7.25p.
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Net Debt: GBP1.6 million better than the half year 2023.
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Wax Lyrical Sales: Up 31%.
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New Bank Facility: GBP30 million revolving credit facility with Barclays.
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Inventory: 5% decrease as part of the inventory reduction program.
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Order Book: Ahead of last year for US, UK, and Wax Lyrical markets.
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Profit Before Tax (PBT) Forecast: GBP4.5 million, compared to GBP3 million last year.
Release Date: September 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sales outside of South Korea increased by 5% on a constant currency basis, with the US market showing a 5% growth.
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The cost reduction program is on track to deliver around 10% or GBP4 million in lower overheads across the year.
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The order book for Christmas in the US, UK, and Wax Lyrical home fragrance business is ahead of last year.
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The interim dividend expectations for the year are 7.25p, up from 5.5p last year.
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A new long-term bank facility deal with Barclays has been signed, providing significant facility headroom.
Negative Points
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Overall sales were down 17% due to significant destocking issues in the South Korean market.
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The company reported a GBP2 million loss in the first half, driven by the sales reduction.
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The Nambe brand sales were down due to a weaker economy in the US and reduced footfall in premium department stores.
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The South Korean market saw a 61% decline in sales, with 50% attributed to destocking issues.
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Supply chain challenges continue, with disruptions in travel and higher container rates impacting operations.
Q & A Highlights
Q: How does Portmeirion Group manage revenue stream and stock building in certain markets to ensure smoother order flow? A: Michael Raybould, CEO, explained that managing order flow is challenging in markets where they don't have their own sales infrastructure, such as South Korea. They rely on distributors who are experts in their markets. The company is working on obtaining better management information on stock levels, particularly in South Korea.
Q: What strategies are in place to drive growth for the Portmeirion and Nambe brands? A: Michael Raybould, CEO, stated that all brands have been impacted by the tougher macroeconomic environment. To drive growth, the company is focusing on acquiring new listings and accounts, increasing online presence, and launching fresh products to engage consumers.