FISKARS INTERIM REPORT JANUARY-MARCH 2018: Net sales and comparable EBITA decreased due to weather and timing differences
Stock Exchange Release
April 27, 2018 at 8:30 a.m. EEST
INTERIM REPORT JANUARY-MARCH 2018: Net sales and comparable EBITA decreased due to weather and timing differences
This release is a summary of the Fiskars Corporation’s January–March 2018 interim report 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 2018 in brief:
- Net sales decreased by 13.1% to EUR 266.1 million (Q1 2017: 306.2)
- Comparable net sales1) decreased by 6.2%
- Comparable2) EBITA decreased by 26% to EUR 23.6 million (32.0)
- EBITA decreased to EUR 22.0 million (30.9)
- Cash flow from operating activities before financial items and taxes amounted to EUR -39.2 million (-46.4)
- Earnings per share (EPS) were EUR 0.20 (1.07, comparable figure 0.28)3)
Outlook for 2018 unchanged:
In 2018, Fiskars expects the Group’s comparable net sales1) and comparable2) EBITA to increase from 2017.
President and CEO, Fiskars, Jaana Tuominen:
“During the first quarter, the weather conditions were challenging, whereas last year the result was supported by more favorable weather. Furthermore, the timing of spring campaigns between the quarters impacted the results. As a consequence, the Fiskars Group had a tough start to the year in both the Living and Functional segments.
Regarding the Functional segment, the exceptionally cold spring in Europe and in the U.S. had an impact on the net sales in the gardening category, which is typically strong in the first half of the year. Comparable net sales increased in Functional Americas thanks to new distribution, however the increase was subdued due to the weather. After a period of weaker sales development, I was pleased to see that the comparable net sales increased in the Outdoor business during the quarter, supported by the expansion to the fishing category.
Net sales decreased in the Living segment, and the lower volumes impacted the comparable EBITA as well. Net sales increased in Finland, but we continued to face challenges in many of our other key markets, especially the U.S., the UK and Australia. Despite these headwinds, we were able to improve the profitability of the English & Crystal Living business, thanks to our consistent actions. In the English & Crystal Living business, we continue to work closely with our customers to create great consumer experiences, focus on improving the operational efficiency and revitalizing our brands.
Despite the performance during the first quarter, we remain confident in our ability to deliver according to our outlook, and we expect to increase our comparable net sales and EBITA in full year 2018.”
1) In 2017, using comparable exchange rates, excluding the net sales reported in 2017 from the divested container gardening business in Europe (December 2016). In the outlook for 2018, 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
3) Earnings per share does not include net changes in the fair value of the investment portfolio. The comparable figure for Q1 2017 has been adjusted accordingly.
Group key figures
|EUR million||Q1 2018||Q1 2017||Change||2017|
|Comparable net sales1)||266.1||283.6||-6.2%||1,184.0|
|Items affecting comparability in EBITA2)||-1.6||-1.1||-5.8|
|Operating profit (EBIT)||19.0||27.4||-31%||97.9|
|Profit before taxes||25.1||114.4||217.8|
|Profit for the period||16.5||88.2||167.1|
|Net change in the fair value of investment portfolio||13.6||81.3||107.9|
|Equity per share, EUR||15.14||14.92||1%||15.53|
|Cash flow from operating activities before financial items and taxes||-39.2||-46.4||16%||130.5|
|Equity ratio, %||68%||66%||69%|
|Net gearing, %||18%||21%||12%|
|Personnel (FTE), average||7,410||7,834||-5%||7,709|
1) Using comparable exchange rates, excluding the net sales reported in 2017 from the divested container gardening business in Europe (December 2016)
2) In Q1 2018, items affecting comparability consisted of personnel-related costs and costs related to the Alignment program. In Q1 2017, items affecting comparability include costs related to the Alignment program and the sale of Spring USA.
3) Earnings per share does not include net changes in the fair value of the investment portfolio. The comparable figures for Q1 2017 and full year 2017 have been adjusted accordingly.
CHANGES IN FISKARS REPORTING IN 2018
Based on the new IFRS 9 standard that Fiskars adopted on January 1, 2018, Fiskars Group records the change in fair value of the Wärtsilä holding in other comprehensive income instead of recognizing fair value changes in the income statement.
Compared to the previous reporting principle, this has transferred the change in fair value of such investments from the income statement to other comprehensive income including deferred taxes. The change has not impacted the treatment of those items' balance sheet classification or dividends in the income statement.
From Q1 2018 onwards, Fiskars will not separately report the operative earnings per share, which previously has excluded the net change in the fair value of the investment portfolio and dividends received. Earnings per share (EPS) figures for 2017 have been adjusted accordingly.
More information on reporting changes are explained in the accounting principles section of this Interim Report.
President and CEO
- President and CEO Jaana Tuominen, tel. +358 204 39 5500
- CFO Sari Pohjonen, tel. +358 204 39 5773
- Corporate Communications, tel. +358 204 39 5031, firstname.lastname@example.org
Analyst and media conference
A presentation for analysts and media on the first quarter results will be held on April 27, 2018 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) 2071 928000
Finland: 09 42450806
Sweden: 08 50692180
Conference ID: 5896295
The presentation can be followed as a live webcast at: https://engage.vevent.com/rt/fiskars/index.jsp?seid=41
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.
Media and investor contacts:
VP, Corporate Communications and Sustainability Maija Taimi, tel. +358 204 39 5031, email@example.com
Fiskars - Making the everyday extraordinary
Fiskars serves people around the world with globally recognized brands including Fiskars, Gerber, Iittala, Royal Copenhagen, Waterford, and Wedgwood. We are building a family of iconic lifestyle brands with the vision to create a positive, lasting impact on our quality of life. Please visit www.fiskarsgroup.com for more information.