Fiskars first quarter 2015: Strong start to the year supported by newly acquired watering business
Fiskars Corporation Interim Report April 30, 2015 at 8.30 am EET
First quarter 2015 in brief:
- Net sales increased by 25% to EUR 230.0 million (Q1 2014: 184.1)
- Comparable net sales (currency neutral and excluding the 2014 acquired watering business) increased by 5%
- Operating profit (EBIT) increased by 91% to EUR 15.7 million (8.2)
- Operating profit excluding non-recurring items increased by 33% to EUR 17.0 million (12.8)
- Change in fair value of investments and other financial income and expenses amounted to EUR 81.5 million (-1.3)
- Cash flow from operating activities was EUR -14.0 million (6.6) due to the increase in working capital brought about by the acquired watering business
- Earnings per share were EUR 0.95 (0.14)
- Operative earnings per share were EUR 0.54 (0.14)
- Outlook for 2015 unchanged: full-year net sales are expected to increase from 2014 levels and operating profit excluding non-recurring items to be below 2014 levels due to increased investment into growth initiatives.
Fiskars President and CEO, Kari Kauniskangas:
“Fiskars had a solid first quarter especially in the US where sales were supported by the newly acquired watering business. Functional products performed well in the Americas segment and the Outdoor business saw growth in the first quarter after a challenging year in 2014.
The integration and turnaround work of the US watering business has started and is proceeding according to plan. The watering business, as earlier communicated, is not expected to generate a profit on a full year basis in 2015.
Living products had a strong quarter in Europe with new product launches being well received. Sales developed favorably in most categories and we were pleased with the positive development of the Iittala, Royal Copenhagen, and Rörstrand brands. Fiskars continued to build its organization in the Asia-Pacific region and expanded the Iittala branded retail network during the quarter with five new Iittala stores in China, Korea and Taiwan.
Fiskars Other segment now includes investments currently valued at over 800 million euros. The valuation of the investments is treated as a financial asset at fair value through profit or loss. This will significantly increase the volatility of Fiskars financial items in the profit and loss statement and thus the volatility of Fiskars net result.
Our strategic work is progressing well and our outlook for 2015 remains unchanged: full-year net sales are expected to increase from 2014 levels and operating profit excluding non-recurring items to be below 2014 levels due to increased investment into growth initiatives.”
Group key figures
| EUR million | Q1 2015 | Q1 2014 | Change | 2014 |
| Net sales | 230.0 | 184.1 | 25% | 767.5 |
| Operating profit (EBIT) | 15.7 | 8.2 | 91% | 42.7 |
| Non-recurring items1) | -1.3 | -4.6 | -72% | -17.0 |
| EBIT excl. non-recurring items | 17.0 | 12.8 | 33% | 59.6 |
| Share of profit from associated company | 7.9 | 30.0 | ||
| Net change in the fair value of investment portfolio | 42.2 | 27.9 | ||
| Profit before taxes2) | 97.6 | 14.6 | 568% | 786.7 |
| Profit for the period2) | 78.0 | 11.9 | 555% | 773.3 |
| Operative earnings/share, EUR3) | 0.54 | 0.14 | 271% | 0.76 |
| Earnings/share, EUR4) | 0.95 | 0.14 | 556% | 9.44 |
| Equity per share, EUR | 14.46 | 7.20 | 101% | 14.06 |
| Cash flow from oper. act.5) | -14.0 | 6.6 | -311% | 87.0 |
| Equity ratio, % | 71% | 57% | 73% | |
| Net gearing, % | 18% | 35% | 11% | |
| Capital expenditure | 5.7 | 5.4 | 6% | 35.0 |
| Personnel (FTE), average | 4,617 | 4,128 | 12% | 4,243 |
1) In Q1 2015, EMEA 2015 restructuring costs and in 2014, EMEA 2015 restructuring costs, writedowns and bargain purchase gain
(badwill)
2) FY 2014 includes a non-recurring gain from the sale and revaluation of Wärtsilä shares of EUR 676.0 million on Oct 9, 2014
3) Excl. the net change in the fair value of investment portfolio and in FY 2014, also the non-recurring gain from the sale and revaluation
of Wärtsilä shares in Oct 9, 2014
4) FY 2014 includes EUR 8.25 from the sale and revaluation of Wärtsilä shares on Oct 9, 2014
5) Including a Wärtsilä dividend of EUR 11.4 million in Q1 2015 and EUR 26.9 million in Q1 2014.
Full interim report
The full interim report is published as a pdf file attachment to this summary stock exchange release and is available on the company's web site at www.fiskarsgroup.com.
Analyst and press conference:
An analyst and press conference will be held on April 30, 2015, at 10:00 am at the company’s headquarters, Fiskars Campus, Hämeentie 135A, Helsinki. Presentation material will be available at www.fiskarsgroup.com.
FISKARS CORPORATION
Kari Kauniskangas
President and CEO
Further information:
- President and CEO Kari Kauniskangas, tel. +358 204 39 5500
- COO & CFO Teemu Kangas-Kärki, tel. +358 204 39 5703
Fiskars – celebrating centuries of pride, passion and design. Every day.
Established in 1649 as an ironworks in a small Finnish village, Fiskars has grown to be a leading global supplier of consumer products for the home, garden and outdoors. Available in more than 60 countries, Fiskars products solve everyday problems, making daily home, garden and outdoor projects easier and more enjoyable through superior performance and design. Fiskars is listed on NASDAQ OMX Helsinki, and the company’s net sales were 768 million euro in 2014. The Group’s key international brands are Fiskars, Iittala and Gerber. www.fiskarsgroup.com