CEO's review Q2 2026

“We delivered the Group’s fourth consecutive growth quarter, with comparable net sales increasing by 3%. Our comparable EBIT also improved in the second quarter, amounting to EUR 8 million. Sales growth was again driven by Business Area Vita, whose profit performance now also showed early signs of recovery – demonstrating progress in its turnaround. Business Area Fiskars delivered a stable quarter, both in terms of sales and profit. Another positive development during the quarter was free cash flow, which improved significantly from the comparison period and increased to EUR 31 million as a result of decreasing net working capital and strict capital expenditure management.

Taking a closer look at the Business Areas, Business Area Vita’s comparable net sales increased by 6%. The growth was driven by Georg Jensen, as well as several regional leader brands such as Rörstrand, which celebrated its 300th anniversary during the quarter. At Georg Jensen, strong demand for core collections, reinforced by line extensions, supported growth. Business Area Vita’s comparable EBIT improved by EUR 5 million to EUR -3 million, driven by increased sales volumes, as well as lower SG&A costs. The Business Area has continued the necessary actions to reduce its inventories, which carry some negative impact on comparable EBIT in the short run. Due to the seasonal nature of the business, more meaningful progress in inventory reduction is expected later in the year, predominantly in the fourth quarter. 

Turning to Business Area Fiskars, its comparable net sales were stable. In the U.S., the Business Area’s largest market, comparable net sales grew for the third quarter in a row, driven by good sell-out. At the same time, demand was softer in Central Europe, particularly in Germany, where last year’s comparison period was supported by non-recurring campaigns. Therefore, as expected, Business Area Fiskars’ comparable EBIT remained relatively stable at EUR 14 million with improved comparable EBIT margin. Gross margin improved, however, its impact was offset by the Business Area’s planned increased spend in new product development and marketing.

In both Business Areas, we continued to strengthen the relevance and desirability of our brands. In Business Area Vita, consumers were engaged through compelling product launches such as Iittala’s sold-out limited-edition Pokémon collaboration and Georg Jensen’s Weft jewelry collection, which brings a contemporary perspective to the brand’s design heritage. In Business Area Fiskars, the Fiskars brand’s expansion into new product categories continued to gain traction, with the roll-out of both Power Tools and Pet Care progressing according to plan. Further demonstrating Fiskars’ innovation capabilities in new categories, the brand received three Red Dot Design Awards at the international design competition during the quarter, with the new Power Tools range earning the highest “Best of the Best” distinction.

In May, we hosted the Group’s Capital Markets Day, where we presented new financial targets for 2026–2030 and updated strategic priorities. The financial targets cover four key areas: growth, profitability, cash conversion and leverage. The strategic priorities reflect the increased accountability of the Business Areas, which now drive their own strategies with clear focus. Consistent with this, growth and profitability targets were set separately for the Business Areas, with cash conversion and leverage at Group level only.

During the second quarter, we received several recognitions for our continuous sustainability work. Most notably, our focused sustainability efforts enabled us to regain the EcoVadis Platinum Medal, placing us among the top 1% of companies assessed globally.

Business Area Vita’s turnaround actions, announced in February, are progressing according to plan. These actions are expected to result in annual cost savings of approximately EUR 28 million, of which close to one third is expected to be realized during the second half of 2026. I am pleased with the commitment and resilience demonstrated by the Vita team as they continue to build the foundation for profitable growth.

We reiterate our guidance and continue to expect comparable EBIT to improve from the 2025 level. While uncertainty in the operating environment continues, I am confident that our actions to strengthen the appeal of our brands, combined with our profitability improvement measures, will enable us to improve our performance in 2026.”

JYRI LUOMAKOSKI

President & CEO