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[November 2002]
Interim Results from Waterford Wedgwood
Waterford Wedgwood achieved sales of 471.2 million euro for the six months ended 30 September 2002, level with the prior year at constant exchange rates, despite difficult trading conditions. Operating profit was up over 40%, from 28.8 million euro to 40.6 million euro and pre-tax profit more than trebled at 39.3 million euro. Earnings per share, before the profit on sale of a fixed asset, goodwill amortisation and gains arising on conversion of $ loans, rose to 3.12 euro cents (2001: 2.22 euro cents). The Group operating margin was 8.6%, an improvement of 2.8 percentage points year on year.Sales of ceramic products were 211.1 million euro, down 7.4% at constant exchange rates. Store refurbishment initiatives in Japan helped to support sales in this important market, while in the USA, where Wedgwood is already the number two premium ceramics brand, Waterford China consolidated the group's leading position in this sector with growing sales.
In what the group called "an exceptionally difficult retail environment", sales in Germany were down 14.4%, though response to the new Andy Warhol porcelain and glass collections by Rosenthal in this and other markets gave cause for optimism for the future of this brand.
The group's profit improvement initiatives and employee number reductions in both Wedgwood and Rosenthal were said to be delivering, and would continue to deliver, benefits. The Ceramic division's recent affiliation with a Chinese ceramics producer would allow the group to source extremely high quality stoneware products, thereby ensuring that the group was well positioned to capture additional volume and market share in its key markets with strong margins as well as providing an opportunity to break into the Chinese market.
Chairman Tony O'Reilly said: "Our brands continue to perform strongly despite continuing difficult market conditions. We are encouraged that in the September-October period our sales were up 6%.
"We are optimistic that ongoing margin improvements, combined with the new energy we will derive from fresh product introductions, new distribution and our recent acquisitions, will produce continued growth."
ENDS