CEO's review Q1 2026

“We had a solid start to the year, with our comparable net sales increasing by 2.3%, despite continued uncertainties in the operating environment. Our comparable EBIT was below last year at  EUR 25 million, impacted by a negative translation effect of more than EUR 2 million due to the weakened U.S. dollar. In line with the seasonal patterns of our business, Business Area Fiskars brought in the Group’s comparable EBIT for the quarter. At the same time, it was encouraging to see Business Area Vita’s sales increasing for the third consecutive quarter. 

Our free cash flow increased to EUR 0.9 million, improving clearly from both the comparison period and historical seasonal pattern of negative first-quarter free cash flow.

Taking a closer look at the Business Areas, Business Area Vita’s comparable net sales grew by 5.0%. The growth was driven by multiple key markets and the continued strong performance of Georg Jensen and Royal Copenhagen with the new Iris collection from Royal Copenhagen being particularly well received. Rörstrand also had a good start to the year supported by its 300th anniversary and new launches. Vita’s comparable EBIT decreased to EUR -0.7 million, impacted by the continued scale-down of manufacturing as the Business Area worked to reduce excess inventories. While the team has made progress in inventories year-on-year, there is still work ahead.

In February, we announced that Vita was planning changes to drive a turnaround in its financial performance and lay foundations for profitable growth. The planned changes include simplifying the organizational structure, as well as right-sizing capacity and streamlining operations at certain manufacturing sites. These changes are progressing according to the announced plans and are expected to result in total annual cost savings of approximately EUR 28 million, of which close to a third is expected to realize in 2026 during the second half of the year.

Business Area Fiskars’ first-quarter comparable net sales were stable, as Fiskars brand’s growth in the U.S. was offset by a more mixed picture in other markets. The Fiskars brand grew in the U.S. for the third consecutive quarter, supported by distribution gains, including both retail locations and product listings. The Business Area’s comparable EBIT was relatively stable at EUR 30.9 million, and its comparable EBIT margin improved to 20.1%, demonstrating the team’s strong execution at the start of the important gardening season. During the quarter, the new Power Tools category entered stores, starting with broad distribution in Europe, and followed by the North American launch later. Additionally, the new Pet Care range continued to expand its retail presence.

Our Business Areas are now fully operationally accountable separate legal subgroups under the parent company Fiskars Corporation. I would like to express my appreciation to our teams who concluded the separation into individual legal entities efficiently on schedule and as planned. Operating independently, the Business Areas benefit from improved flexibility and speed of execution, enabling the acceleration of their distinct growth opportunities. It also allows increasing transparency and measurability at the Business Area level. We will present our strategic priorities and new financial targets in connection with our Capital Markets Day on May 12, 2026.

The first quarter marked a step-up in our climate ambitions, as our new science-based emissions reduction targets were approved by the Science Based Targets initiative (SBTi). As we had made strong progress towards our 2030 targets, we raised the bar for emissions reductions in both our own operations and across the value chain. In addition, our commitment to reach net-zero by 2049 was officially validated by the SBTi, underscoring our long-term ambition.

With one quarter now behind us, we reiterate our guidance and expect comparable EBIT to improve from the 2025 level. The uncertainties in the global economy and geopolitical environment have not eased – quite the contrary – limiting visibility in the market. At the same time, our measures to strengthen our profitability, especially in Business Area Vita, are advancing as planned. With current visibility, we are confident that we can improve our performance this year.”

JYRI LUOMAKOSKI

President & CEO