2023 Interim Results
September 2023
2023
OVERVIEW & H1 2023 RESULTS
H1 23 overview
- Resilient performance with total sales down 3% on tough comparator (record 2022 sales) despite diminished consumer sentiment
- North America down 13% reflecting previously stated customer de-stocking
- Robust sales performance outside of North America
- Profit: £nil due to high operational gearing drop through on sales - Group traditionally second half weighted
- Christmas order books ahead of prior year and started to ship per forecasts
- Maintaining focus on tight control of operating costs
- Operating margin medium-term target of 10% remains viable and long-term target of 12.5%
- Interim dividend maintained at 3.50p
2
OVERVIEW & H1 2023 RESULTS
H1 2023 performance
- Sales decline 3% versus record 2022 sales due to increased caution on ordering from US retailer customers
- Sales remain +26% ahead of 2019 pre-Covid levels
- Peak inflation cost in inventory including container freight - subsides H2 2023/2024
- Small underlying profit increase across UK/ROW/South Korea/Wax Lyrical
- Interim dividend maintained
- Net debt increase due to higher working capital - expected to improve by
Profit Walk
2.0 0.2 (1.4)
£m's
(0.5) | ||||||||||||||||||
(0.3) | ||||||||||||||||||
- | ||||||||||||||||||
H1 2022 | UK/ROW profit N America profit | Interest | Other Income | H1 2023 | ||||||||||||||
improvement | reduction |
2023 | 2022 | 2019 | 2023 v | 2023 v | |
2022 | 2019 | ||||
£m | £m | £m | |||
Change | Change | ||||
Revenue | 44.1 | 45.5 | 34.9 | -3% | +26% |
Headline* profit | 0.0 | 2.0 | 0.5 | -100% | -100% |
before tax | |||||
Headline* | |||||
operating profit | 1.6% | 4.3% | 1.7% | -2.7% | -0.1% |
margin | |||||
Headline* EPS | (0.12p) | 12.00p | 3.96p | -101% | -103% |
Dividends | 3.50p | 3.50p | 8.00p | - | -4.50p |
Net debt | (15.0) | (6.8) | (5.8) | -8.2 | -9.2 |
*Headline numbers exclude exceptional items; acquisition and restructuring costs.
2023 | 3 |
OVERVIEW & H1 2023 RESULTS
Strong balance sheet maintained
- Net assets increased by 1%
- Significant facility headroom
- Net debt £15.0 million, December 23 forecast reduction of 30% year on year
- Like-for-likeinventory reduction of 5% with more progress to come in H2
- Pension scheme small surplus
Inventory Walk | 1.4 | (1.9) |
1.5 | ||
(5.1) | ||
41.1 | ||
£m's | 37.0 | |
Dec 2022 | AromaWorks | Chrismas in Transit H1 LFL reduction H2 LFL reduction Dec 2023 Forecast |
2023 | 2022 | 2019 | 2023 v | 2023 v | |
2022 | 2019 | ||||
£m | £m | £m | |||
Change | Change | ||||
Non-current assets | 41.0 | 38.9 | 30.3 | 5% | 35% |
Inventory | 42.1 | 42.6 | 24.2 | -1% | 74% |
Trade & other | 17.3 | 14.0 | 12.9 | 24% | 34% |
receivables | |||||
Cash | 1.5 | 3.2 | 2.2 | -53% | -32% |
Total current | 60.9 | 59.8 | 39.3 | 2% | 55% |
assets | |||||
Trade and other | -22.3 | -27.0 | -16.7 | -17% | 34% |
payables | |||||
Borrowings | -16.4 | -10.0 | -8.0 | 64% | -105% |
Pension scheme | 0.6 | 1.4 | 0.6 | -57% | - |
Net assets | 63.8 | 63.1 | 45.5 | 1% | 40% |
2023 | 4 |
OVERVIEW & H1 2023 RESULTS
Sales analysis by market
• US/Canada impacted by retailer destocking | 2023 | 2022 | 2019 | 2023 v | 2023 v | |
Sales by country | 2022 | 2019 | ||||
• UK sales +2% despite weakened consumer sentiment | £m | £m | £m | |||
Change | Change | |||||
• South Korea growth due to timing, new ranges, increased online | US | 12.9 | 14.1 | 8.5 | -9% | 52% |
distribution - expect slower H2 in department store channel | UK | 11.7 | 11.5 | 12.3 | 2% | -5% |
• Total ROW ceramic markets +10% (excluding Russia/Eastern | ||||||
South Korea | 14.3 | 13.4 | 10.5 | 7% | 36% | |
Europe) - part of long term strategy | ||||||
Canada | 1.5 | 2.6 | 0.5 | -42% | 200% | |
Europe | 1.5 | 1.4 | 1.5 | 7% | - | |
Australia | 0.1 | 0.7 | 0.3 | -86% | -67% | |
China/Far East | 1.5 | 0.6 | 0.1 | 150% | 1400% | |
Middle East | 0.1 | 0.4 | 0.6 | -75% | -83% | |
Russia/Eastern | - | 0.2 | 0.4 | -100% | -100% | |
Europe | ||||||
Other | 0.5 | 0.6 | 0.2 | -17% | 150% | |
Total | 44.1 | 45.5 | 34.9 | -3% | 26% | |
2023 | 5 |