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(Alliance News) - Portmeirion Group PLC said Thursday it now expects profit for 2019 to be "materially behind current market expectations", as sales into the South Korean market continue to be weaker than expected.
The crockery maker said the South Korean market continues to perform weaker than expected since the demand for company's Botanic Garden ranges has led to other companies overstocking the market.
"The clearing of the overstocking in South Korea, combined with a more disciplined focus on exports has resulted, however, in a larger than anticipated short term reduction in our Botanic Garden range sales," the company said.
Back in May the company reported 10% drop in sales, but has since "invested considerable resources to address these issues", such as developing new products and markets and diversifying its brands and distribution channels.
Whilst the company is confident that strategic investment will result in sales growth in 2020, it now expects profit for 2019 to be "materially behind current market expectations".
However, Portmeirion sees no change in its dividend policy with "strong balance sheet and expectation of ongoing healthy levels of cash generation in the business".
Mike Raybould, chief executive officer, said: "With the actions we have now taken, I am confident that we will be able to turnaround our South Korean business and grow strongly in a greater number of markets in the coming years."
Portmeirion shares were down 18% in London at 699.00 pence each on Thursday.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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