Significant disruption from US import tariffs
South Korea and International markets strong
Portmeirion Group PLC has issued a trading update for the six months to 30 June 2025 (“H1” or “the period”). The group reports sales are up 2.8 per cent at constant currency and up 10.8 per cent, excluding USA.
There has been good rebound in South Korea and double-digit growth in International and Wax Lyrical. Meanwhile, proactive action has been taken in response to impact of USA tariffs.
Mike Raybould, chief executive, says: “The imposition of additional import tariffs in the USA at the beginning of Q2 caused immediate disruption and significant uncertainty in our largest and most profitable market. We have proactively implemented a number of actions in response to these challenges and will continue to monitor the situation closely, remaining sensitive to the wider macro/ political uncertainty and its influence on consumer confidence.
“We progress against our 2025/26 strategic priorities which will drive a transformation of our business – our International and South Korean markets are back in growth, and the UK has seen an impressive performance from Wax Lyrical which continues to take market share.”
TRADING OVERVIEW
Group Sales are expected to be c.£37.1m, up 1.3 per cent year-on-year in the period and up 2.8 per cent in constant currency. H1 is traditionally the Group’s quieter half.
North America: Sales -10.6%. Actions taken in response to tariff disruption -early signs that retailer confidence maybe returning in recent weeks.
The group says it has successfully managed its production schedules and shipments into the USA during the tariff disruption in H1, and our customers can expect to receive their orders significantly earlier than in prior years, ensuring product is in-store and available for sale at the beginning of the peak Holiday and Christmas season.
In FY25 the product supplied by the Group into the USA market will be markedly down on a like-for-like basis by volume as the group has cancelled certain orders sourced from Asia for the USA market which would be subject to higher tariffs.
Portmeirion is taking this opportunity to accelerate its Made in Stoke-on-Trent onshoring initiative which it outlined at the time of the Group’s Annual Results on 31st March 2025, increasing the proportion of product supplied into the USA from the United Kingdom.
In early March 2025, Portmeirion launched a review of its USA sales strategy, and as a result is withdrawing or reducing supply of some brands to certain value retailers who contribute low margin sales. The group will carefully manage supply by account and by brand, so it can better support those retail and distribution partners who position Portmeirion brands appropriately for medium-long term growth. Portmeirion is excited to be opening its eighth Nambé store in Dallas in July and a ceramics pop up store in New Jersey in August.
United Kingdom: Sales +3.0% due to strong performance from Wax Lyrical
Performance driven by Wax Lyrical, the home fragrance brand which grew 15.5 per cent and continues to see good sell through with national retailers, supported by the expansion of listings. Portmeirion’s UK tableware sales declined by 8.9 per cent, primarily due to the timing of an initial Spode new product launch order in the prior year and planned closure of a retail factory outlet.
South Korea: Sales +31.6% ongoing recovery
A strong performance, recovering from its 2024 nadir as Portmeirion supports key customers with new product innovation and progress clearing the historic stock overhang which impacted the business in 2023/24 after COVID. We are confident that sales in South Korea will continue to recover.
International*: Sales +11.2% driven by new distributors in key growth target markets and a strong pipeline of product innovation.
International sales markets are a priority for the Group and a key part of the long-term growth strategy.
*International consists of over 50 separate markets excluding USA, UK, and South Korea
BALANCE SHEET
Net debt on 30th June 2025 is expected to be £14.8m (prior year £13.4m), marginally higher due to much earlier shipment of product into the USA market for the Holiday and Christmas season, and the associated cost of funding tariff payments. Portmeirion’s working capital profile is seasonal, reaching a peak in October, reducing rapidly in November and December.
COSTS
The group continues to actively manage costs. In H1 the group says it felt the first impact from the UK Governments increase in National Insurance Contribution and National Minimum Wage, and utility prices remained high throughout the period. US import tariffs have had an impact on international freight costs. In response to the imposition of US import tariffs, Portmeirion has taken the opportunity to accelerate its UK on-shoring initiative Made in Stoke-on-Trent which was announced on 31st March 2025 and was scheduled to complete in 2027. The UK is a higher cost venue to manufacture, but this is a necessary investment of margin and will benefit brands over the medium-long term, particularly in international markets.
OUTLOOK
The group anticipates modest sales growth in H2, primarily due to short term caution on the US market. They anticipate the UK to be flat – low single digit growth driven by good Wax Lyrical performance, and continued improvement in South Korea and International markets.
In summary, Portmeirion says: “Our Brands remain well regarded in the market, we have strong seasonal ranges, a pipeline of new products and innovation and we are growing our brand reach. We launched our 2025-26 Transformation plan three months ago with our Annual Results, and this is involving every member of staff across every part of our business and has the potential to deliver significant improvements in our performance.”
