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[September 2001]
Waterford Wedgwood Interim Results
For the six months to 30 June 2001, group total sales were 462.3 million euros, up 3.4% on the record 2000. Group operating profit was (pre-amortisation of goodwill) was 29.7 million euros, up marginally over 29.5 million euros last time. Group pre-tax profit was down 6.6% at 17 million euros.
Sales of ceramics achieved a strong increase in sales - up 13.2% to 229.5 million euros - reflecting market share gains, particularly in the USA and Hutschenreuther, described as "a unique performance against the peer companies in this category".
All key brands within the ceramics sector achieved increased market share in their major markets. Waterford and Wedgwood formal china now commands nearly 21% of the US market, up 4 percentage points from 2000. Wedgwood grew by 3% in the UK and by over one-third in Europe. In total, Wedgwood sales improved by 6%.
The significant increase in ceramic sales was supported by growing sales in Rosenthal, up 5% and the addition of the Hutschenreuther brand to the portfolio. Wedgwood stated that it is also beginning to see the benefits of the accelerated integration of Hutschenreuther into Rosenthal - now due for completion six months earlier than originally planned, in the first half of 2002.
The company said it was delighted to announce a partnership with the renowned American fashion designer Vera Wang. A range of 'Vera Wang by Wedgwood' bridal patterns will be launched in the USA in April 2002. The recent launch of 'Jasper Conran at Wedgwood' received wide acclaim, continuing the history of successful collaboration with some of the world's outstanding designers.
Chairman Sir Anthony O'Reilly said of the overall group performance: "Despite tough 2001 trading conditions, common to all our competitors, Waterford Wedgwood has increased total sales and maintained operating margins. This resilience reflects the strength of our brands and our increasing geographic and product diversification. In the relatively small trading months of July and August, conditions have weakened in the US. Should the economic environment worsen during the balance of the year, we will take appropriate action to protect our ongoing profitability. The future structure of our company will be constantly reviewed in the light of the rapidly evolving economic scene".
ENDS