FISKARS INTERIM REPORT JANUARY–MARCH 2017: Strong quarter – net sales and comparable EBITA grew

Fiskars Corporation
Interim Report
April 28, 2017 at 8:30 a.m. EEST

FISKARS INTERIM REPORT JANUARY–MARCH 2017: Strong quarter – net sales and comparable EBITA grew

This release is a summary of the Fiskars Corporation’s first quarter of 2017 and interim report January–March published today. The complete interim 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.

First quarter 2017 in brief:

• Net sales increased by 3.3% to EUR 306.2 million (Q1 2016: 296.2)
• Comparable net sales¹⁾ increased by 4.8%
• Comparable²⁾ EBITA increased by 28% to EUR 32.0 million (25.0)
• EBITA increased to EUR 30.9 million (26.8)
• Cash flow from operating activities before financial items and taxes amounted to EUR -46.4 million (-36.2)
• Earnings per share (EPS) were EUR 1.07 (0.01). Operative earnings per share³⁾ totaled EUR 0.19 (0.10)

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 strong start to the year, with increased net sales and comparable EBITA. The Functional segment net sales grew in all geographies, and both Living and Functional segments delivered solid results, as the comparable EBITA nearly doubled in the Living segment and grew by 17% in the Functional segment.  

The solid first quarter was supported by favorable weather conditions and strong sell-in in the gardening category, the timing of spring campaigns as well as our improved cost structure. In addition, we have succeeded in winning big customer accounts, thanks to our in-store excellence, presence in several markets and customer focus. Inspiring consumers with a family of iconic lifestyle brands is at the core of our business and several of our brands, Fiskars, Royal Copenhagen, Arabia, Gilmour, and Royal Doulton demonstrated double digit growth.

I am pleased with the excellent performance in the Scandinavian Living and Functional businesses, reflecting the persistent work and focus our team has manifested over time. During the first quarter, we continued to see the benefits of the transformation programs that have been initiated during the past few years. The solid results speak of our ability to create value, generate growth with our strong brands and drive operational efficiencies.

The trade continued to face lower traffic in traditional channels, especially in department stores, as consumers continued to move to online and e-commerce platforms across various categories in the Living business. Building omni-channel capabilities with our trade partners, in own retail and digital channels is a strategic priority and we continue to invest in e-commerce to increase net sales in these channels.

Our long-term financial targets, shared earlier this year, outline the ambition level as we determinedly pursue continued profitable growth. The new organization structure with two Strategic Business Units and a global supply chain will help us in increasing cohesion and alignment, both of which we need in order to build global businesses and brands. 

Fiskars has a family of globally recognized brands, including Fiskars, Gerber, Iittala, Royal Copenhagen, Waterford, and Wedgwood, a clear purpose to make the everyday extraordinary, and a strong balance sheet that provides us the flexibility to invest in opportunities that can create sustainable value for our stakeholders.”

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1)Using comparable exchange rates, excluding Spring USA (divested in September 2016) and the container gardening businesses in the U.S. (divested in January 2016) and Europe (divested in 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 Spring USA (divested in September 2016) and the container gardening businesses in the U.S. (divested in January 2016) and Europe (divested in December 2016)
2) In Q1 2017, items affecting comparability include costs related to the Alignment program and the sale of Spring USA. In Q1 2016, a gain from the sale of the boats business and the container gardening business in the Americas as well as net costs related to the Supply Chain 2017 program and Alignment program.
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.

IMPACT OF ESMA GUIDELINES

In accordance with the guidelines on alternative performance measures issued by the European Securities and Markets Authority (ESMA) Fiskars Corporation has revised the terminology used in its financial reporting. Alternative Performance Measures (APM) are used to better reflect the operational business performance and to facilitate comparisons between financial periods. APMs should not be considered substitutes for measures of performance in accordance with the IFRS. As of Q1 2017, the term “adjustments” has been changed to the term “items affecting comparability (IAC)”, however the definition remains the same. As before, items affecting comparability are transactions that are not related to recurring business operations, such as restructuring costs, impairment charges, integration related costs, and the gain or loss from the sale of businesses. Correspondingly, “comparable EBITA” is calculated from comparable EBIT by adding back amortization. The items affecting comparability are listed in a table on page 15 of this interim report. Fiskars also uses the APM “operative EPS”, which is earnings per share (EPS) excluding the effects of the dividends from and the change in the fair value of 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 5460
• 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 April 28, 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: 32727625
Finland: 09 23195187
France: 0176742428
Germany: 06922224918
Norway: 21563013
Sweden: 08 50336434
USA: 16315107498

Conference ID: 3010939

The presentation can be followed as a live webcast at: https://engage.vevent.com/rt/fiskars/index.jsp?seid=22

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.