LONDON (ShareCast) - (Sharecast News) - Portmeirion Group reported a modest increase in sales for the first half on Monday, as strong growth in South Korea and international markets helped offset a sharp decline in the United States caused by new import tariffs.
Group sales for the six months ended 30 June rose 1.3% year-on-year, or 2.8% at constant currency.

Excluding the US, sales grew by 10.8%.

South Korean revenue surged 31.6%, while international markets delivered 11.2% growth, aided by new distribution partnerships and a strong pipeline of product innovation.

The AIM-traded company also saw a 15.5% sales increase in its UK home fragrance brand, Wax Lyrical, though UK tableware sales declined by 8.9%.

In the US, sales fell 10.6% following the introduction of additional import tariffs in the second quarter, which Portmeirion said caused "immediate disruption and significant uncertainty" in its largest and most profitable market.

In response, the company said it had taken several steps, including cancelling certain Asia-sourced orders and accelerating its 'Made in Stoke-on-Trent' onshoring initiative to supply more US product from the UK.

"We have proactively implemented a number of actions in response to these challenges and will continue to monitor the situation closely," said chief executive Mike Raybould.

"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."

Portmeirion said it was also reviewing its US sales strategy, and would reduce or withdraw supply to low-margin value retailers.

It said it was planning to focus support on retailers that aligned with its brand positioning.

The group was set to open its eighth Nambé store in Dallas in July and a ceramics pop-up in New Jersey in August.

Group net debt stood at £14.8m at 30 June, up from £13.4m a year earlier, due to earlier US shipments to support the peak holiday season and associated tariff-related costs.

The company said working capital was expected to peak in October and then decline rapidly through the end of the year.

Portmeirion said it expected modest sales growth in the second half, led by South Korea and international markets, while UK growth would be driven primarily by Wax Lyrical.

The company said it remained cautious on the US market in the near term, but continued to implement its 2025-2026 transformation plan aimed at improving performance across all areas of the business.

Interim results for the six months ended 30 June would be published in late September.

At 1231 BST, shares in Portmeirion Group were up 1.84% at 135.95p.

Reporting by Josh White for Sharecast.com.

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