Fiskars Group interim report January-September 2021

Fiskars Corporation
Interim Report
October 29, 2021 at 8:30 a.m. (EEST)

Fiskars Group interim report January-September 2021

Sixth consecutive quarter of net sales growth, with Business Area Vita as the main driver in Q3

This release is a summary of the Fiskars Corporation’s January–September 2021 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 2021 in brief:

• Net sales increased by 9.4% to EUR 291.8 million (Q3 2020: 266.7)
• Comparable net sales1) increased by 10.0% to EUR 291.8 million (265.4)
• EBITA decreased by 1.3% to EUR 38.6 million (39.1)
• Comparable2) EBITA decreased by 3.1% to EUR 38.0 million (39.3)
• Cash flow from operating activities before financial items and taxes decreased to EUR 51.9 million (115.6)
• Earnings per share (EPS) were EUR 0.36 (0.33)

January-September 2021 in brief:

• Net sales increased by 12.2% to EUR 901.2 million  (Q1-Q3 2020: 802.9)
• Comparable net sales1) increased by 15.6% to EUR 901.2 million (779.8)
• EBITA increased by 65.1% to EUR 129.6 million (78.5)
• Comparable2) EBITA increased by 52.9% to EUR 132.7 million (86.8)
• Cash flow from operating activities before financial items and taxes decreased to EUR 109.3 million (134.0)
• Earnings per share3) (EPS) were EUR 0.84 (0.53)

Outlook for 2021 upgraded on October 13, 2021:

On October 13, 2021, Fiskars upgraded its outlook for 2021. The company expects the comparable EBITA for 2021 to be in the range of EUR 160-170 million. According to the previous outlook issued on June 23, 2021, the comparable EBITA in 2021 was expected to be in the range of EUR 140-160 million.

The upgrade was based on the company’s better than expected financial performance during the third quarter, in particular towards the end of the quarter. A central factor was that Fiskars has so far successfully mitigated the global supply chain challenges, which have previously been highlighted as a material risk for the full-year financial performance.

The seasonality of both trade and consumer demand may continue to differ from a typical year, also towards the end of the year. Trade customers may seek to secure the availability of products by pulling forward orders from the first quarter of 2022 into the fourth quarter of 2021. In addition, there are ongoing challenges in global supply chains as well as raw material and energy price inflation. While the company has managed to mitigate these factors, they continue to pose a risk.

President and CEO, Fiskars Group, Nathalie Ahlström:

We continued on a strong growth path in the third quarter, marking the sixth consecutive quarter of growth. At the same time, this was our highest third-quarter net sales ever. Comparable EBITA fell somewhat behind the record high level seen last year.

Our financial performance improved towards the end of the quarter in all Business Areas. Comparable net sales increased in Vita and Crea, while it was at the previous year’s level in Terra. For Terra and Crea, the comparison figures from 2020 were at record levels.

Despite challenges in the global supply chains, we have successfully served our customers, which has been a competitive advantage for us. The risks related to product availability are still ongoing. In addition, raw material and logistics prices continue to increase. A new factor is the increase in energy prices, which impacts Vita in particular. We continue to mitigate these factors. However, there might be a lag with the timing of the cost inflation and the effect of the actions.

During the second half of the year, we are investing more in our growth levers. These investments are mostly related to our digital operations, to develop our capabilities within data, direct-to-consumer and the consumer experience. During the third quarter, we opened approximately 50 new positions to support our Digital growth initiative. We have also made changes to our current IT operations, which will bring savings from 2022 onwards. We expect these upfront investments to be covered by future savings.

Our two ongoing restructuring programs are coming to an end. In the half-year financial report of 2021 we gave an update on the Vita transformation program. We can now confirm that the Restructuring program will also be completed by the end of 2021. We expect that the majority of the benefits will be realized by the end of 2021. Additionally, the costs of the programs will be significantly lower than originally anticipated. In other words, 2021 will mark the completion of both programs, delivering the savings we targeted and with costs below our initial expectations.

Our focus is now on ensuring the shipments for the important last quarter of the year. At the same time, we continue to implement our strategy to create organic growth for the longer term. As part of our growth plans, we announced a new global strategic partnership with Moomin Characters, as we announced the acquisition of a minority stake in Rights & Brands, a licensing agency representing iconic Nordic brands such as the Moomins. We look forward to discussing our growth strategy in more detail at our Capital Markets Day on November 9, 2021.

1)       Comparable net sales excludes the impact of exchange rates, acquisitions and divestments.

2)       Items affecting comparability in EBITA includes items such as restructuring costs, impairment or provisions charges and releases, integration-related costs, and gain and loss from the sale of businesses.

3)       EPS in Q1 2021 impacted negatively by the unfavorable ruling in the tax dispute (EUR 0.35 per share).

Group key figures

1)                    Comparable net sales excludes the impact of exchange rates, acquisitions and divestments.

2)                    In Q3 2021, items affecting comparability consisted of items related to the transformation and restructuring programs.

3)                    EPS in Q1 2021 impacted negatively by the unfavorable ruling in the tax dispute (EUR 0.35 per share).

FISKARS CORPORATION

Nathalie Ahlström
President and CEO

Webcast

A webcast on the third quarter results will be held on October 29, 2021 at 11:00. It will be held in English and can be followed at: https://fiskars.videosync.fi/2021-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:
Kristian Tammela, Director, Investor Relations, tel. +358 40 708 1181
 

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.