Portmeirion Group PLC shares jumped on Thursday, after it said it now expects full-year sales to be ahead of market expectations.
The Stoke-on-Trent, England-based pottery maker was up 18% to 379.00 pence per share in London on Thursday morning.
Portmeirion said it had a ‘strong’ Christmas trading period, with robust demand across its portfolio of consumer goods brands.
As a result, it now expects full-year 2022 sales to be at least £110 million. This is a 3.8% increase from £106.0 million a year earlier and 4% ahead of consensus market expectations.
Further, the company expects pretax profit to be 10% above 2021 levels of £6.0 million.
‘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,’ Chief Executive Mike Raybould explained.
Looking ahead, Portmeirion said it remains ‘cautious’ in its outlook for 2023, given the backdrop of expected weaker consumer demand. However, it said it believes it is well place for growth as conditions improve.
The company added that it expects to improve operating margins in 2023 through ongoing implementation of operational efficiencies, driving operating margin towards its 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,’ Raybould said.
The company expects to announce its 2022 financial results on March 23.
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