CEO's review Q3 2025

“Our comparable net sales turned to growth in the third quarter, increasing by 4% despite the continuing market headwinds. However, this solid net sales development did not flow through to the bottom line. Our comparable EBIT declined to EUR 14 million as comparable gross margin was negatively impacted by additional costs in the supply chain. Both the Group’s net sales growth and comparable EBIT decline were largely attributable to Business Area Vita’s performance.

Business Area Vita delivered good topline growth during the third quarter, with comparable net sales increasing by 8%. Growth was broad-based across most of Vita’s brands with positive momentum driven particularly by Georg Jensen as well as Waterford, which showed signs of recovery. However, Vita’s comparable EBIT for the quarter declined to only EUR 5 million impacted by inventory-related issues – the Business Area’s inventories are currently too high as a result of a prolonged period of challenging demand conditions.

We are scaling down production to address the inventory challenge – most notably, we have initiated furloughs at our Barlaston manufacturing unit in the UK and Iittala glass factory in Finland.  Although these actions are necessary and help reduce inventories and preserve cash flow, they have a negative impact on our comparable EBIT through supply chain variance. Consequently, we have narrowed our guidance for 2025 and now expect Fiskars Group’s comparable EBIT to be in the range of EUR 90-100 million. Our current view points more towards the lower end of the range, albeit market visibility remains limited. The end-of-year holiday season is especially critical for Business Area Vita and currently we expect its positive net sales trend to continue in the fourth quarter.

I also want to acknowledge the fact that, partially as a result of capital being tied up in inventories, our net debt to comparable EBITDA has risen well above our target level of 2.5X. We remain committed to returning to our target level.

Regarding Business Area Fiskars, cautious retailer inventory behavior continued impacting volumes and the Business Area’s comparable net sales in the third quarter decreased by 1%. Business Area Fiskars was able to protect its profitability, with comparable EBIT remaining relatively stable at EUR 13 million despite the cost pressures from U.S. tariffs.

As the tariffs continue to cause market uncertainty, I am pleased that our rigorous mitigation actions are beginning to deliver tangible benefits. Nevertheless, the expanded scope of steel tariffs announced in August, requires further efforts. Our teams are committed to mitigating tariff impacts while protecting our market position. We also continue our actions to rebase some of our sourcing to optimize our supply chain in the long term.

We continue to invest in demand creation, which is even more important to both our Business Areas in today’s challenging market environment. Business Area Fiskars is actively advancing its innovation pipeline, and I am excited to see outputs of these initiatives take shape soon. We look forward to showcasing some category expansions already at our Business Area Fiskars-focused investor event, which will be held in Finland in November. Meanwhile, Business Area Vita engages with consumers to spark brand desirability. As a testament to strong brand loyalty, Moomin Arabia’s special edition Moomin’s Day mug once again sold out within hours on the brand’s online store and long queues formed at many of our stores. 

Our Business Areas already operate independently with their own CEOs. This enables them to better serve consumers and drive brand growth as well as provide greater transparency. The separation into individual legal entities is also well underway, with the first wave already successfully implemented. We expect this process to be finalized by the end of the first quarter of 2026.

After the reporting period, on October 16, I was honored to be appointed the President and CEO of Fiskars Group, following my service in the same role on an interim basis. This is an iconic company with world-class brands, strong expertise and commitment. I look forward to continuing to work with our teams to develop our company on its change journey.

As we approach the year-end, we are focused on ensuring we have everything in place to execute the holiday season successfully. At the same time, we are firmly committed to our efforts to safeguard our market share and cash flow.”

JYRI LUOMAKOSKI

President & CEO