FISKARS HALF YEAR FINANCIAL REPORT JANUARY–JUNE 2017: Good progress in Q2 – comparable net sales and comparable EBITA increased

Fiskars Corporation
Half Year Financial Report 
August 1, 2017 at 8:30 a.m. (EEST)

FISKARS HALF YEAR FINANCIAL REPORT JANUARY–JUNE 2017: Good progress in Q2 – comparable net sales and comparable EBITA increased

This release is a summary of the Fiskars Corporation’s second quarter of 2017 and half year financial report January–June published today. The complete half year financial 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.

Second quarter 2017 in brief:

• Net sales decreased by 1.2% to EUR 290.0 million (Q2 2016: 293.5)
• Comparable net sales¹⁾ increased by 0.6%
• Comparable²⁾ EBITA increased by 7% to EUR 22.4 million (20.9)
• EBITA increased to EUR 21.3 million (18.4)
• Cash flow from operating activities before financial items and taxes amounted to EUR 48.6 million (39.1)
• Earnings per share (EPS) were EUR 0.31 (-0.26). Operative earnings per share³⁾ totaled EUR 0.14 (0.08)

January–June 2017 in brief:

• Net sales increased by 1.1% to EUR 596.1 million (Q1–Q2 2016: 589.7)
• Comparable net sales¹⁾ increased by 2.7%
• Comparable²⁾ EBITA increased by 18% to EUR 54.4 million (45.9)
• EBITA increased to EUR 52.2 million (45.2)
• Cash flow from operating activities before financial items and taxes amounted to EUR 2.2 million (2.9)
• Earnings per share (EPS) were EUR 1.39 (-0.25). Operative earnings per share³⁾ totaled EUR 0.34 (0.19)

Outlook for 2017 unchanged:

Fiskars expects the Group’s net sales, excluding the net sales of businesses divested in 2016 (2016: EUR 1,180 million) and comparable EBITA (2016: EUR 107 million) to increase from the previous year.

Interim President and CEO, Fiskars, Teemu Kangas-Kärki:

”Fiskars Group had a good first half of 2017, with comparable net sales and comparable EBITA growing clearly. Despite the tough market conditions in some of our key markets, we have grown our business and taken market share with several of our brands, including Fiskars, Iittala, Royal Copenhagen, Royal Doulton, Rörstrand, and Arabia. After the strong first quarter, we continued to grow our comparable net sales and comparable EBITA during the second quarter of 2017. While the second quarter got off to a slow start due to weather conditions and the challenging trade environment, Fiskars Group made good progress during the quarter. 

The growth of comparable net sales was excellent in Europe and Asia-Pacific during the first half of the year. I was particularly pleased to see that the strong performance of the Scandinavian Living business continued and the business demonstrated robust growth during the second quarter, supported by the Finland 100 anniversary products by Arabia and Iittala brands as well as the Royal Copenhagen and Rörstrand brands. Despite the tough weather conditions, the comparable net sales grew in the Functional business during the first half of the year. 

The comparable net sales grew in the Functional Americas business during the first half of the year, whereas the comparable net sales in the entire Americas region was adversely impacted by two factors. The premium sales channels in the Living business continued to face headwind in the U.S. and the market for outdoor knives has not recovered in the region. We do not expect the conditions in the premium sales channels for the living products in the U.S. to improve in the short term. Therefore, we continued to invest in brand development in the English & Crystal Living business, supporting future growth opportunities. Furthermore, we are focused on developing our omnichannel approach across the businesses to succeed in the changing business environment.  

Fiskars operates globally with a considerable part of the business in the U.S. The U.S. dollar has weakened during the first half of the year, and should the weakening continue, the translation exposure may have a material impact on our reported financial figures. We continue to focus on driving profitable growth and strengthen our capabilities to progress in all the markets where we operate. We are determined to grow our core businesses, build iconic lifestyle brands, and create high quality consumer experiences – by making the everyday extraordinary.”

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1) Using comparable exchange rates, excluding the divested Spring USA (September 2016) and the divested container gardening businesses in the U.S. (January 2016) and Europe (December 2016)
2) Items affecting comparability include items such as restructuring costs, impairment or provisions charges and releases, integration related costs, and gain and loss from the sale of businesses
3) Operative earnings per share do not include net changes in the fair value of the investment portfolio and dividends received

Group key figures

1) Using comparable exchange rates, excluding the divested Spring USA (September 2016) and the divested container gardening businesses in the U.S. (January 2016) and Europe (December 2016)
2) In Q2 2017, items affecting comparability consist of net costs related to the Alignment program. In Q2 2016, items include costs from the sale of the boats business as well as net costs related to the Supply Chain 2017 program and Alignment programs.
3) Excluding net change in the fair value of the investment portfolio and dividends received. The comparison period has been restated to also exclude the exchange rate gains related to the investment portfolio

FISKARS CORPORATION
 

Teemu Kangas-Kärki
Interim President and CEO

Further information:

• Interim President and CEO Teemu Kangas-Kärki, tel. +358 204 39 5703
• CFO Sari Pohjonen, tel. +358 204 39 5773
• Corporate Communications, tel. +358 204 39 5031, communications@fiskars.com

Analyst and media conference
A presentation for analysts and media on the first quarter results will be held on August 1, 2017 at 10:00 a.m. at the company’s headquarters, Fiskars Campus, Hämeentie 135 A, Helsinki. Presentation materials will be available at www.fiskarsgroup.com.

A conference call and live web cast for analysts and investors will be held on the same day at 11:30 a.m. (EEST). The conference call will be held in English. To participate in the conference call please dial 5-10 minutes prior to the start of the conference. Questions can be asked in English after the presentation.

International dial-in number: +44 (0)1452555566
Denmark: +45 32 727625
Finland: +358 9 23195187
France: +33 (0)176742428
Germany: +49 (0)6922224918
Norway: +47 21563013
Sweden: +46 (0)8 50336434
USA: +1 6315107498

Conference ID: 41851150

The presentation can be followed as a live webcast at: https://engage.vevent.com/rt/fiskars/index.jsp?seid=26

An on-demand version of the webcast will be available on the company website later the same day. Personal details gathered during the event will not be used for any other purpose.

Fiskars – Making the everyday extraordinary
Fiskars serves consumers and customers around the world with globally recognized brands including Fiskars, Gerber, Iittala, Royal Copenhagen, Waterford, and Wedgwood. Building on our mission to create a family of iconic lifestyle brands, Fiskars’ vision is to create a positive, lasting impact on our quality of life. Please visit www.fiskarsgroup.com for more information.