Fiskars interim report January-March 2021
Fiskars Corporation
Interim report
April 29, 2021 at 8:30 a.m. (EEST)
Fiskars interim report January-March 2021
Exceptionally strong start to the year driven by all Business Areas
This release is a summary of the Fiskars Corporation’s January–March 2021 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 2021 in brief:
• Net sales increased by 17.9% to EUR 302.1 million (Q1 2020: 256.2)
• Comparable net sales1) increased by 23.3% to EUR 302.1 million (245.1)
• EBITA increased to EUR 49.1 million (11.9)
• Comparable2) EBITA increased by 162.9% to EUR 49.8 million (18.9)
• Cash flow from operating activities before financial items and taxes increased to EUR 10.7 million (-37.5)
• Earnings per share (EPS) were EUR 0.10 (0.06)
Outlook for 2021 upgraded on April 19, 2021:
Fiskars Corporation upgraded its guidance on the outlook for 2021, which was originally issued on February 5, 2021 and upgraded on March 24, 2021. The company expects the strong momentum in the first quarter to continue, and now expects the comparable EBITA for 2021 to be in the range of EUR 130 – 145 million.
Visibility continues to be low due to the COVID-19 pandemic, which is profoundly impacting consumers’ lives in terms of changes in for example disposable income, purchasing choices and consumer behavior. These may bring challenges as well as opportunities for Fiskars Group. The seasonality of both trade and consumer demand may continue to differ from a typical year.
President and CEO, Fiskars Group, Nathalie Ahlström:
Fiskars Group had an excellent start to the year, driven by broad-based positive development. The strong momentum from the second half of 2020 continued in the first quarter. I am proud of our talented team, who has been able to continue to deliver such solid results during these exceptional times.
During the quarter, more time spent at home supported demand and consequently supported net sales growth in many of our categories. We have been able to capitalize on the surge in demand, improve the direct channel, create great consumer experiences and strengthen our brands. The positive momentum has been visible in many parts of our business. Demand in the US market has continued to be strong, particularly in the gardening category, where our customers have placed orders earlier than usual. Our growth efforts in Continental Europe have also continued to show good results. Additionally, the Vita segment has continued to grow in China as well as in the important e-commerce channel. It is however, good to remember that the first quarter of 2020 was challenging for Vita, as the pandemic started to have a negative impact already in late January last year.
The strong demand and challenges in the global logistics chains have put pressure on our supply chain, during 2021 in particular. Despite this, we have been able to serve our customers successfully. While the strong net sales development supported our profitability, the strong growth in comparable EBITA was also enabled by other factors. We improved the product mix and gained increased benefits from our ongoing Restructuring and Transformation programs. Temporary cost-cutting measures supported our profitability in the full year 2020, and these measures only had a minor impact on our results in the first quarter of 2021.
As we have stated previously, in 2021 we will focus on executing on our strategy and completing the ongoing programs. Within our strategy, we are continuing to sharpen our focus to creating growth, which is essential for us in the long term. To support the work, we made several important changes during the first quarter. The most notable change concerns the digital space, the importance of which has only increased during the pandemic. We appointed Peter Cabello Holmberg as Chief Digital Officer and member of the Group Leadership Team. He and his team will have a central role in improving our agility to adapt to the rapidly changing digital landscape, as well as realizing benefits in internal processes and the digital consumer experience.
In addition to the increased focus on digital, we continue to strengthen our consumer centric culture, which includes building a more insightful dialogue with consumers and stakeholders. To reach this, we need to further align communications, brand management, sustainability and digitalization. A consumer centric culture is crucial for realizing the ambition of building a strong portfolio of internationally loved brands and making the consumers’ everyday extraordinary.
We continue to accelerate our sustainability work toward 2030, by creating a shared ambition and refreshed approach to further integrate sustainability into our business practices. Sustainability is at the core of what we do, and we have now raised our ambition. During the quarter, we published our long-term sustainability ambition, which is to be the sustainability leader in our industry. At the same time, we also renewed our sustainability commitments, which are against a throwaway culture, for a carbon neutral future, and for increased joy. These commitments will guide our work and describe our priorities on our sustainability journey.
As the strong momentum has continued in 2021, we expect the comparable EBITA to be in the range of EUR 130 – 145 million. However, visibility still continues to be low as a result of the COVID-19 pandemic. As previously said, the pandemic has altered consumer habits and needs, shifting the seasonality of both trade and consumer demand. This phenomenon may continue, and create differences compared to a typical year. At the same time, consumers are seeking experiences in their everyday, and we are all continuously committed to catering to those needs.
1) 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
Group key figures
| EUR million | Q1 2021 | Q1 2020 | Change | 2020 |
| Net sales | 302.1 | 256.2 | 17.9% | 1,116.2 |
| Comparable net sales1) | 302.1 | 245.1 | 23.3% | 1,101.5 |
| EBITA | 49.1 | 11.9 | 125.8 | |
| Items affecting comparability in EBITA2) | -0.7 | -7.0 | -11.0 | |
| Comparable EBITA | 49.8 | 18.9 | 162.9% | 136.8 |
| Operating profit (EBIT) | 45.9 | 8.4 | 98.0 | |
| Profit before taxes | 41.9 | 8.5 | 89.8 | |
| Profit for the period | 8.1 | 5.1 | 59.0% | 68.5 |
| Earnings/share, EUR | 0.10 | 0.06 | 60.8% | 0.83 |
| Equity per share, EUR | 8.90 | 9.11 | 9.30 | |
| Cash flow from operating activities before financial items and taxes | 10.7 | -37.5 | 223.8 | |
| Equity ratio, % | 54% | 51% | 57% | |
| Net gearing, % | 25% | 44% | 19% | |
| Capital expenditure | 6.1 | 5.0 | 21.1% | 30.0 |
| Personnel (FTE), average | 5,908 | 6,374 | -7.0% | 6,104 |
1) Using comparable exchange rates.
2) In Q1 2021, items affecting comparability consisted mainly of items related to the restructuring program.
FISKARS CORPORATION
Nathalie Ahlström
President and CEO
Webcast
A webcast on the first quarter results will be held on April 29, 2021 at 11:00 a.m. It will be held in English and can be followed at: https://fiskars.videosync.fi/fiskars-group-q1-results
Presentation materials will be available at www.fiskarsgroup.com
An on-demand version of the webcast will be available on the company website. Personal details gathered during the event will not be used for any other purpose.
Media and investor contacts:
Kristian Tammela, Director, Investor Relations, tel. +358 40 708 1181
Making the everyday extraordinary
Fiskars Group’s vision is to create a positive, lasting impact on our quality of life. Our brands Fiskars, Gerber, Iittala, Royal Copenhagen, Waterford, and Wedgwood are present in people’s everyday lives – at home, in the garden, and outdoors. This gives us an opportunity to make the everyday extraordinary today, and for future generations. We have a presence in 30 countries, and our products are available in more than 100 countries. Our shares are listed on the Nasdaq Helsinki (FSKRS). Please visit us at www.fiskarsgroup.com for more information and follow us on Twitter @fiskarsgroup.