Supply chain woes serve up disappointment for Portmeirion

Portmeirion has described its 2024 results as ‘disappointing’ as it continues to face challenges such as supply chain disruptions, de-stocking, and political instability.

The homewares manufacturer revealed an 11% drop in revenue to £91.2m, primarily due to a downturn in its South Korean market.

Excluding South Korea, revenue remained flat compared to the previous year.

In December, Portmeirion had issued a profit warning, forecasting FY24 revenue of around £90m and a profit before tax of £1m, both of which were below market expectations.

Mike Raybould, chief executive said: “2024 was a disappointing year and our financial performance overshadowed good growth in our Spode brand and improved profitability in the US, our largest sales market.  Our customers reported strong sell through of our collections during the key Christmas period and Wax Lyrical, our home fragrance business also saw strong top and bottom line growth.

“Action is being taken across our operations to position the business for sustainable future growth and we are moving forward with clear priorities to return our established markets to growth, strengthen our balance sheet, invest in our premium brands and develop new international markets. Trading in 2025 has started positively and we are cautiously optimistic at this early point in the year, mindful of the headwinds many businesses are facing in this uncertain economic climate.”

The company experienced disruption in Q4, with supply chain delays in Asia and shipping issues in the US due to port strikes.

Political instability in both the UK and the US led to order cancellations, fewer replenishment orders, and increased costs.

Headline profit before tax saw a significant drop of 63%, falling from £3m to £1.1m, again driven by weak sales in South Korea and reduced factory usage.

Despite the challenges, Portmeirion saw an 18% increase in net profitability in the US, reaching £4.2m, even with ongoing supply chain delays.