FY 2023 Prelims

March 2024

2024

About Portmeirion Group

2024

2

ABOUT PORTMEIRION GROUP

Who we are

1960

6

750+

80+

FOUNDED IN

CONSUMER

YEARS OF

MARKETS

STOKE-ON-

HOMEWARE

COLLECTIVE

DISTRIBUTED

TRENT

BRANDS

HERITAGE

TO WORLDWIDE

  • We are an omni-channel British homewares manufacturer and retailer
  • An unrivalled portfolio of heritage and contemporary brands, comprising tableware, home fragrances and hand & body products
  • Global demand across diversified international markets, including key geographies of the US, UK and South Korea

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3

ABOUT PORTMEIRION GROUP

Our brands

Beautiful tableware

Unmistakeable

The premier brand for

UK made home

Iconic mid-century

Refined design and

taking inspiration from

homeware design

placemats

fragrance and body care

modern design in

heritage for the table

nature

homewares and giftware

Since 1960

Since 1770

Since 1945

Since 1980

Since 1951

Since 1751

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4

ABOUT PORTMEIRION GROUP

Our investment case

01

02

Owner, manufacturer and omnichannel retailer of leading homeware brands globally

Sales model and brand heritage offers worldwide diversification and revenue visibility

03

Proven capital-light and well developed, self funded

growth strategy

04

Substantial margin improvement opportunity to

transform profitability

05

Strong balance sheet, cash generative and dividend paying

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5

ABOUT PORTMEIRION GROUP

Confident vision

Significant opportunity for long-term revenue growth

Leveraging brands through global geography and omni-channel routes to market

Medium term operating margin target of 10%

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6

ABOUT PORTMEIRION GROUP

Long term track record

Revenue - £m

120.0

100.0

80.0

60.0

40.0

20.0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Adj. Pre-tax Profit - £m

10.0

8.0

6.0

4.0

2.0

0.0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

  • LT track record of sales growth and profitability even in toughest of macro conditions
  • Opportunity and strategy in place to return to historical levels of operating margin & profitability

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7

ABOUT PORTMEIRION GROUP

High class global customer list

UK

USA

CANADA

GLOBAL

KOREA

CHINA

MEXICO

AUSTRALIA

MALAYSIA

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8

OVERVIEW

FY 23 overview

  • Sales & underlying PBT in line with revised market expectations
  • US & Asia markets challenging, but great progress on what we can control:
    • Strong ROW market development
    • Significant home fragrance sales improvement
    • GM% up 130bp in US
    • Much improved FCF, reduced net debt
    • Significant leaner cost base from 2024 ( 10% /£4m lower)
  • Dividends reduced in short term; prioritise debt and interest reduction
  • Expect to return to modest growth in UK, US, ROW in 2024 with improving margins but lower South Korean sales in short term will impact H1 2024
  • Focus on operating margin growth 2024 through 2026

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9

OVERVIEW

FY 2023 performance

  • Sales fall 7% versus record 2022 sales due to stock rebalancing and macro conditions in US & South Korea
  • Sales remain 11% ahead of 2019 pre-Covid levels
  • 130 bp gross margin improvement in US
  • Wax Lyrical sales rebound up 24%
  • ROW sales growth continues + 16%
  • Net debt reduced 20% driven by ongoing inventory reduction
  • Dividend reduced in short term as we prioritise debt and interest cost reduction

2023

2022

2019

2023 v

2023 v

2022

2019

£m

£m

£m

Change

Change

Revenue

102.7

110.8

92.8

-7%

+11%

Headline* profit

3.0

8.0

7.4

-62%

-59%

before tax

Headline*

operating profit

4.7%

7.8%

8.4%

-3.1%

-3.7%

margin

Headline* EPS

21.36p

46.59p

56.32p

-54%

-62%

Dividends

5.50p

15.50p

8.00p

-10.00p

-2.50p

Net debt

(7.9)

(10.1)

(12.3)

2.2

4.4

*Headline numbers exclude exceptional items; acquisition and restructuring costs.

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10

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Portmeirion Group plc published this content on 12 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 April 2024 12:31:30 UTC.