Games Workshop Shares Slip on Tariff and Plastic Costs as Profit Hits Record
Games Workshop Faces Financial Headwinds Despite Record Profit
July 28 (Reuters) - Shares in Games Workshop fell as much as 6.5% on Tuesday after the British miniature wargames maker flagged tariff headwinds and higher plastic prices stemming from the Iran war, overshadowing record annual profit.
Key Financial and Operational Details
Here are some details:
Tariff Impacts and Mitigation Strategies
• Games Workshop said new U.S. tariffs are expected to create an annualised cost of around £13 million ($17.29 million), although the company expects mitigation measures, including price increases and operational changes, to offset part of the impact.
Rising Plastic Costs and Supply Chain Disruption
• The Warhammer maker also flagged higher plastic input costs, estimating a roughly £2 million hit from supply-chain disruption and inflationary pressures linked to volatility in global energy markets.
Brand Strength and Product Expansion
• The company, known for its premium, in-house produced fantasy miniatures, has built a cult-like following for Warhammer, which has expanded into video games, books and a film.
AI Usage Policy
• It reiterated that AI is not used in creating Warhammer miniatures, artwork or lore, but said the growing inclusion of AI tools in third-party software means it may be used in some non-creative business functions.
Profit Growth and Market Valuation
• Profit before tax rose 4.9% to a record £275.7 million for the fiscal year ended May 31, driven by continued growth in the core Warhammer busine
• Games Workshop, the only publicly listed pure-play miniatures company globally, last traded at £195.64 per share around 0755 GMT, valuing it at about £6.46 billion.
Exchange Rate Information
($1 = 0.7519 pounds)
Reporting Credits
(Reporting by Atharva Singh in Bengaluru; Editing by Nivedita Bhattacharjee)