Historic pottery maker Wedgwood helped its parent company enjoy a “solid year in a challenging operating environment” in 2022.
Fiskars Group has reported comparable earnings before interest and taxes of almost £135 million (€151 million) for 2022 – the second best in its history. Although it is just over two per cent down on 2021, that year was its best ever.
Comparable global net sales declined by 12.2 per cent in the final quarter of the year as demand weakened but 2022 almost two per cent up, at £1.12 million (€1.248 billion).
The premium and luxury products sector of the business which includes Wedgwood made up just over 45 per cent of the group’s net sales last year.
Those sales in the sector dropped in the “crucial” final quarter of the year – and production and working hours were cut at Wedgwood’s Barlaston factory for around four weeks – but they were up for the full year with net sales at £503.63 million (€563.7 million). The sales growth was driven by direct-to-customer (DTC) channels.
About the sector, a financial report released yesterday, Tuesday, states: “Royal Copenhagen and Wedgwood were the best-performing brands and over 50 per cent of their sales is already generated in DTC channels.
“The U.K., Ireland and Denmark also contributed positively to sales growth.”
However, the group expects earnings before interest and taxes to be down slightly in 2023.
The report adds: “The company expects that the key negative factors impacting its performance in 2023 will be the continued volatility of the market environment and weaker demand especially in the first half of the year.”
Fiskars also announced yesterday that it is planning to launch an employee share savings plan this year.
Wedgwood’s factory in Barlaston, near Stoke-on-Trent, is the only place in the world where its famous jasperware is made. The site is also home to the World of Wedgwood visitor attraction.
Wedgwood merged with Irish manufacturer Waterford to form Waterford Wedgwood in the late 1980’s. Parts of the group went into receivership in 2009 and were acquired by American private equity firm KPS Capital Partners, with the Wedgwood name amongst those transferred to a new company named WWRD Holdings Limited.
Fiskars Group, based in Finland, acquired the firm in 2015 and now employs 6,644 people around the world. Its other consumer goods brands include Royal Doulton.
