Pottery giant Portmeirion has got off to a strong start in 2022 after seeing sales increase in the first four months of the year.
In a recent trading update, the Stoke-based company – whose brands include Spode, Royal Worcester, Pimpernel, Wax Lyrical and Nambe – reported that sales for January through April are up two per cent on the same period last year.
The update detailed how Portmeirion has seen 'significant change' in consumer sentiment and spending since last year as consumers deal with the impact of inflation in food, energy and fuel prices.
It also made reference to further covid-related disruption in supply chains and sales markets, including China.
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Despite this, the company says it has successfully mitigated the economic challenges by forward-ordering stock and having long-term energy contracts in place until March 2024.
It added that it is 'encouraged' as the business continues to grow and is 'confident' that ongoing strategic investment in factory automation and online channels will enable future growth in sales, while order books for the key Christmas period and Portmeirion's wider international markets remain healthy.
This year marks the 50th anniversary of the Portmeirion Botanic Garden range and the company is planning to launch new products in its ceramic, gifting and home fragrance categories to mark the occasion.
The firm has also pledged to continue to invest in its online channels, with new e-commerce sites due to go live in the next few months.
Portmeirion chief executive Mike Raybould said: "We have started the year with good momentum against a backdrop of rising costs, supply chain disruption and wavering consumer confidence, with sales in the first four months up two per cent on the same period last year.
"I am pleased with the progress we are making in delivering on our strategic growth objectives which has seen us continue to invest in and develop our online sales channels, with our new e-commerce sites due to go live over the coming months, leverage our heritage brands as well as launch new categories and products.
"Whilst we remain mindful of ongoing disruption to global supply chains and inflationary cost pressures, I am confident that our continued investment across key areas of the business, the strength of our heritage brands and our exciting roadmap for new products and ranges ensure that we are well placed to continue growing the group and delivering long term value to our customers and our shareholders."
Commenting on Portmeirion's latest trading update, Sanjay Jha, analyst at Panmure Gordon, said: "This is a robust performance in the face of every imaginable obstacle. Demand has been weakened by the impact of inflation in food staples, energy and fuel prices, not to mention the stop-start covid-related disruption in the supply chains and to deliveries, especially in China. Some of these issues have been successfully overcome through judicious forward-ordering of stock."
Mr Jha added: "Against the generally tough macro backdrop, we continue to believe that the company should maintain its momentum thanks to its strategic investments in factory automation and online platforms that will not only deliver top-line sales but also margin improvements over the long term."
