Correction: Fiskars Group interim report January-September 2020
Fiskars Corporation
Stock Exchange Release
October 30, 2020 at 9:30 a.m. (EET)
Correction: Fiskars Group interim report January-September 2020
This is a correction to Fiskars Corporation's Stock Exchange Release issued on October 30, 2020 at 8:30 EET regarding Fiskars' interim report January-September 2020. In the English version of the release, the figures for January-September 2020 in brief were incorrect. The figures in the attachment were correct.
Strong progress during the third quarter driven by exceptionally good demand in several categories as well as savings actions
This release is a summary of the Fiskars Corporation’s January–September 2020 interim report published today. The complete report with tables is attached to this release as a pdf-file. It is also available at http://fiskarsgroup.com/investors/reports-presentations/interim-reports and on the company website at www.fiskarsgroup.com. Investors should not rely on summaries of the interim reports only, but should review the complete interim reports with tables.
Third quarter 2020 in brief:
• Net sales increased by 7.2% to EUR 266.7 million (Q3 2019: 248.7)
• Comparable net sales1) increased by 9.5% to EUR 266.7 million (243.6)
• EBITA increased to EUR 39.1 million (7.2)
• Comparable2) EBITA increased to EUR 39.3 million (13.4)
• Cash flow from operating activities before financial items and taxes increased to EUR 115.6 million (10.5)
• Earnings per share (EPS) were EUR 0.33 (0.04)
January-September 2020 in brief:
• Net sales increased by 2.6% to EUR 802.9 million (Q1-Q3 2019: 782.4)
• Comparable net sales1) increased by 3.3% to EUR 802.9 million (777.6)
• EBITA increased by 91.9% to EUR 78.5 million (40.9)
• Comparable2) EBITA increased by 56.3% to EUR 86.8 million (55.5)
• Cash flow from operating activities before financial items and taxes increased to EUR 134.0 million (32.8)
• Earnings per share (EPS) were EUR 0.53 (0.37)
Outlook for 2020 reinstated on October 13, 2020:
In 2020, Fiskars expects the comparable EBITA to increase from 2019.
Interim CEO, Fiskars Group, Sari Pohjonen:
Fiskars Group made good progress in Q3, with a clear year-on-year increase in net sales and comparable EBITA. Despite the challenging environment, our profitability improved in particular towards the end of the quarter. We reinstated our outlook for this year earlier in the month, expecting the comparable EBITA to increase from 2019.
After a highly volatile period in Q2, we continued to focus on improving execution, managing spending and providing solid service to our customers as well as compelling experiences to consumers. We made good progress with our strategic priorities as our direct e-commerce continued to grow by strong double-digit figures in all Business Areas. Likewise, the expansion in China with the Wedgwood brand continued as planned with solid growth.
Earlier in the year, we said that we were taking proactive steps to lessen the negative impacts of COVID-19 on our operations. Thanks to these quick and decisive actions we have seen good progress in our profitability. The majority of these savings are temporary in nature, and as such cannot be sustained for a prolonged period of time. On the other hand, the effects of our long-term efficiency actions are also visible in the improved profitability, and these transformation programs continue as planned.
The Business Area Terra maintained its positive momentum and increased net sales, supported by favorable weather and new distribution in the gardening category. In BA Crea, demand increased in the scissors and crafting categories as people spent more time at home. Both BAs significantly improved their comparable EBITA.
In BA Vita, the challenging market situation persisted, as traffic to stores remained weak. Despite the headwinds, I was pleased to see the growth in e-commerce and the increase in comparable EBITA. The improvement in profitability was driven by cost savings and an improved product mix.
The COVID-19 pandemic continues to bring significant uncertainties for the remainder of the year. The fourth quarter of the year has typically been seasonally our most important one, and particularly the gifting season can provide risks as well as opportunities, depending on several factors, including lockdowns, store closures and changes in consumer confidence.
I want to thank our employees for their resilience during these exceptional times, for their commitment to serving our customers and consumers and their passion and energy for making the everyday extraordinary.
1) Comparable net sales excludes the impact of exchange rates, acquisitions and divestments
2) Items affecting comparability in EBITA include items such as restructuring costs, impairment or provisions charges and releases, integration-related costs, and gain and loss from the sale of businesses
Group key figures
|
EUR million |
Q3 2020 | Q3 2019 | Change | Q1-Q3 2020 | Q1-Q3 2019 | Change | 2019 |
| Net sales | 266.7 | 248.7 | 7.2% | 802.9 | 782.4 | 2.6% | 1,090.4 |
| Comparable net sales1) | 266.7 | 243.6 | 9.5% | 802.9 | 777.6 | 3.3% | 1,075.3 |
| EBITA | 39.1 | 7.2 | 78.5 | 40.9 | 91.9% | 72.9 | |
| Items affecting comparability in EBITA2) | -0.1 | -6.2 | -8.3 | -14.6 | 43.2% | -17.7 | |
| Comparable EBITA | 39.3 | 13.4 | 86.8 | 55.5 | 56.3% | 90.6 | |
| Operating profit (EBIT) | 35.6 | 4.1 | 64.7 | 31.5 | 105.2% | 60.1 | |
| Profit before taxes | 34.6 | 2.3 | 59.4 | 36.8 | 61.4% | 63.2 | |
| Profit for the period | 27.0 | 3.7 | 43.2 | 31.2 | 38.3% | 52.4 | |
| Net change in the fair value of investment portfolio | -0.1 | 0.0 | -20.4 | -20.4 | |||
| Earnings/share, EUR | 0.33 | 0.04 | 0.53 | 0.37 | 40.5% | 0.63 | |
| Equity per share, EUR | 9.08 | 9.18 | 9.34 | ||||
| Cash flow from operating activities before financial items and taxes | 115.6 | 10.5 | 134.0 | 32.8 | 117.5 | ||
| Equity ratio, % | 51 % | 55 % | 56 % | ||||
| Net gearing, % | 29 % | 42 % | 34 % | ||||
| Capital expenditure | 8.8 | 8.9 | -1.8% | 20.5 | 27.4 | -25.2% | 40.0 |
| Personnel (FTE), average | 6,027 | 6,853 | -12.1% | 6,140 | 6,938 | -11.5% | 6,840 |
1) Using comparable exchange rates and excluding the Leborgne divestment.
2) In Q3 2020, items affecting comparability consisted mainly of items related to the Transformation program.
FISKARS CORPORATION
Sari Pohjonen
Interim CEO and CFO
Further information:
• Interim CEO and CFO Sari Pohjonen. tel. +358 204 39 5773
• Corporate Communications. tel. +358 204 39 5031, communications@fiskars.com
Webcast
A webcast on the third quarter results will be held on October 30, 2020 at 11:00 a.m. It will be held in English and can be followed at: https://fiskars.videosync.fi/2020-q3-results
Presentation materials will be available at www.fiskarsgroup.com.
An on-demand version of the webcast will be available on the company website. Personal details gathered during the event will not be used for any other purpose.
Media and investor contacts:
Corporate Communications, tel. +358 204 39 5031, communications@fiskars.com
Making the everyday extraordinary
Fiskars Group’s vision is to create a positive, lasting impact on our quality of life. Our brands Fiskars, Gerber, Iittala, Royal Copenhagen, Waterford, and Wedgwood are present in people’s everyday lives – at home, in the garden, and outdoors. This gives us an opportunity to make the everyday extraordinary today, and for future generations. We have a presence in 30 countries, and our products are available in more than 100 countries. Our shares are listed on the Nasdaq Helsinki (FSKRS). Please visit us at www.fiskarsgroup.com for more information and follow us on Twitter @fiskarsgroup.