Fiskars Q1 2016: Increased net sales and operating profit in a mixed market environment
Fiskars Corporation
Interim Report
May 4, 2016 at 8.30 a.m. EET
Fiskars Q1 2016: Increased net sales and operating profit in a mixed market environment
This release is a summary of the Fiskars Corporation’s first quarter of 2016 and Interim Report January-March 2016 published today. The complete January–March 2016 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 our interim reports only, but should review the complete interim reports with tables.
First quarter 2016 in brief:
- Net sales increased by 29% to EUR 296.2 million (Q1 2015: 230.1)
- Net sales increased by 1.5% on a comparable basis1)
- Operating profit increased to EUR 23.7 million (15.7)
- Adjusted operating profit2) increased by 29% to EUR 21.9 million (17.0)
- Earnings per share (EPS) were EUR 0.01 (0.95). Operative earnings per share3) amounted to EUR 0.10 (0.14).
- Outlook for 2016 unchanged: Fiskars expects the Group’s 2016 net sales and adjusted operating profit to increase from the previous year
1) Using comparable exchange rates, excluding the acquired English & Crystal Living (WWRD) business and divested boats and container gardening businesses
2)Adjustments in Q1 2016 include a gain from the sale of the boats business and the container gardening business in the Americas, and net costs related to the Supply Chain 2017 program and integration activities. In Q1 2015, costs related to EMEA restructuring
3) Operative earnings per share do not include changes in the fair value of the investment portfolio and dividends received
President and CEO, Fiskars, Kari Kauniskangas:
“Fiskars achieved a good start to the year, as both net sales and operating profit grew. Comparable net sales also increased despite the challenging market conditions in some of our key markets, namely Finland and Japan. We demonstrated strong development in net sales and profit, driven by the Scandinavian Living business in Europe and Functional business across all regions.
I was particularly pleased with our progress in the Scandinavian Living business in Europe, driven by the Royal Copenhagen and Rörstrand brands. In addition, Iittala launched a unique collaboration collection, Iittala X Issey Miyake, with the aim of further increasing brand awareness in major cities around the world. The launch was implemented with a true omni-channel approach and attracted a significant amount of attention among current and new consumers across the globe.
Led by the Fiskars brand, the Functional business performed very well in the Americas, with increased operating profit year-on-year. Net sales in the watering business were down due to exits from several unfavorable sales agreements. The turnaround of the watering business is progressing according to plan, and we are leveraging our expertise in the garden category.
As expected, English & Crystal Living net sales decreased from the comparison period. We are progressing with the integration of the business, where we will benefit from our successful integration track record with Iittala and Royal Copenhagen. Building on the iconic brands – Waterford, Wedgwood, Royal Albert and Royal Doulton – as well as our key Scandinavian Living brands – Iittala, Royal Copenhagen and Rörstrand – we will focus on creating a world-leading luxury and premium Living business delivering sustained profitable growth.
During the first quarter, we completed the divestments of the boats and the U.S. container gardening businesses, allowing us to better focus on our world-leading consumer brands.
We expect the business environment to remain challenging especially in Asia and some European countries. Our trade customers continue to face structural changes across the globe. We are meeting these challenges head-on and will focus on leveraging the home and garden trend currently gaining momentum in several markets, targeting profitable growth in an omni-channel environment, working together with our trade customers and building consistent consumer experiences at every touchpoint.”
Group key figures
| EUR million | Q1 2016 | Q1 2015 | Change | 2015 | |
| Net sales | 296.2 | 230.1 | 29% | 1,107.1 | |
| Operating profit (EBIT) | 23.7 | 15.7 | 51% | 46.5 | |
| Adjustments to operating profit1) | -1.8 | 1.3 | 18.6 | ||
| Adjusted operating profit | 21.9 | 17.0 | 29% | 65.1 | |
| Adjusted EBITA | 25.0 | 18.9 | 32% | 75.7 | |
| Net change in the fair value of investment portfolio | -25.7 | 42.2 | 56.1 | ||
| Profit before taxes | 3.2 | 97.6 | -97% | 125.5 | |
| Profit for the period | 1.5 | 78.0 | -98% | 86.4 | |
| Operative earnings/share, EUR2) | 0.10 | 0.14 | -26% | 0.16 | |
| Earnings/share, EUR | 0.01 | 0.95 | -99% | 1.04 | |
| Equity per share, EUR | 13.83 | 14.46 | -4% | 14.54 | |
| Cash flow from operating activities before financial items and taxes | -36.2 | -51.9 | -30% | 50.2 | |
| Equity ratio, % | 64% | 71% | 65% | ||
| Net gearing, % | 27% | 18% | 21% | ||
| Capital expenditure | 8.2 | 5.7 | 43% | 32.4 | |
| Personnel (FTE), average | 8,092 | 4,617 | 75% | 6,303 | |
1) In Q1 2016, a gain from the sale of the boats business and the container gardening business in the Americas, and net costs related to the Supply Chain 2017 program and integration activities. In Q1 2015, costs related to EMEA restructuring
2) Excluding net change in the fair value of the investment portfolio and dividends received. The comparison period has been restated to also exclude the exchange rate gains related to the investment portfolio
Analysts and media conference:
An analysts and media conference will be held at 10 a.m. on May 4, 2016, at the company’s headquarters, Fiskars Campus, Hämeentie 135 A, Helsinki. Presentation material will be available after the conference at www.fiskarsgroup.com.
FISKARS CORPORATION
Kari Kauniskangas
President and CEO
Further information:
- President and CEO Kari Kauniskangas, tel. +358 204 39 5500
- COO and CFO Teemu Kangas-Kärki, tel. +358 204 39 5703
- Corporate Communications, tel. +358 204 39 5031, communications@fiskars.com
Fiskars – celebrating centuries of pride, passion and design. Every day.
Established in 1649 as an ironworks in a small Finnish village, Fiskars has grown to be a leading consumer goods company with globally recognized brands including Fiskars, Iittala, Gerber, Wedgwood and Waterford. With iconic products, strong brands and global ambitions, Fiskars’ mission is to enrich people’s lives in home, garden and outdoor. Fiskars’ products are available in more than 100 countries and the company employs around 9,000 people in 30 countries. Fiskars is listed on Nasdaq Helsinki. www.fiskarsgroup.com