Fiskars Corporation
Interim report
April 24, 2025 at 8:30 a.m. (EEST)
Fiskars Corporation Interim Report for January-March 2025
Positive start to the year - comparable EBIT improved, first organic growth
quarter since 2022
This release is a summary of Fiskars Corporation's Interim Report for January
-March 2025 published today. The complete Interim Report with tables is attached
to this release as a pdf-file. It is also available
at https://fiskarsgroup.com/investors/reports-and-presentations/annual-and
-interim-reports/ and on the company website at www.fiskarsgroup.com. Investors
should not rely on summaries of financial reports only, but should review the
complete reports with tables.
January-March 2025 in brief:
· Comparable net sales[1] increased by 1.7% to EUR 291.9 million (Q1 2024:
286.9). Reported net sales increased by 3.2% to EUR 291.9 million (282.9).
· Comparable EBIT[2] increased to EUR 26.8 million (25.1), or 9.2% (8.9%) of
net sales. EBIT decreased to EUR -4.6 million (6.4).
· Cash flow from operating activities before financial items and taxes
increased to EUR -2.1 million (-5.5).
· Free cash flow increased to EUR -17.4 million (-20.1).
· Comparable earnings per share were EUR 0.15 (0.19). Earnings per share (EPS)
were EUR -0.16 (0.03).
1. Comparable net sales exclude the impact of exchange rates, acquisitions and
divestments.
2. Items affecting comparability in EBIT include items such as restructuring
costs, impairment or provisions charges and releases, acquisition-related costs,
and gains and losses from the sale of businesses. Comparable EBIT is not
adjusted to exclude the EBIT contribution of acquisitions/divestments/disposals.
Guidance for 2025 (unchanged)
Fiskars Corporation expects comparable EBIT to improve from the 2024 level
(2024: EUR 111.4 million).
Assumptions behind the guidance
The operating environment has become more unpredictable following the U.S.
tariff announcements in early April 2025. These tariffs are expected to increase
sourcing costs directly, particularly for products imported from China. They may
also have indirect negative impacts on consumer confidence in the U.S. as well
as across geographies and therefore impact demand for Fiskars Group's key
categories. The U.S. represents approximately 30% of Fiskars Group's net sales
and approximately 50% of Business Area Fiskars' net sales.
Fiskars Group continues to take proactive measures to mitigate cost pressures
and preserve margin resilience, including pricing adjustments and ongoing
productivity initiatives. As assessed with the current information, the Group
expects that its actions can largely mitigate adverse direct impacts of tariffs.
However, visibility in the market is exceptionally limited and the situation is
continuously evolving.
Fiskars Group is also subject to fluctuations in the U.S. dollar. While a
weakening U.S. dollar benefits the company in currency transactions due to its
net-buy position, it has a negative impact through translation risk.
The direct effects of tariffs will primarily concern Business Area Fiskars due
to its significant business operations in the U.S., while the more unpredictable
indirect impacts on consumer confidence may affect both Business Areas. The
first half of the year is important for Business Area Fiskars and its gardening
category as well as the back-to-school season. Historically, approximately 70%
of Business Area Fiskars' annual EBIT is delivered in the first half of the
year. As a whole, the Group's EBIT generation is tilted towards the end of the
year, highlighting the importance of the second half and especially the fourth
quarter. During this period, the development of consumer sentiment and Business
Area Vita's volumes will play a significant role.
President and CEO, Fiskars Group, Nathalie Ahlström:
“We delivered our first organic growth quarter since the second quarter of 2022,
with comparable net sales increasing by 2% in a tough market environment. The
increase was driven particularly by distribution gains achieved by the Fiskars
brand as well as good growth delivered in Royal Copenhagen and Moomin Arabia.
Sales in Direct-to-Consumer (DTC) channels grew by 9%, which is testament to the
strength of our brands. Our comparable EBIT increased to EUR 27 million, driven
by the growth in net sales, as well as continued cost management. This increase
was achieved even considering our significant investments in demand creation,
which ramped up in the first quarter as planned.
We can all be proud of this positive start to the year. That said, we must
acknowledge the current extreme market turmoil and barriers to trade, as well as
their impact on market visibility for the full year. The operating environment
has become more unpredictable following the U.S. tariff announcements in early
April 2025. We continue to take proactive measures to mitigate cost pressures
and preserve margin resilience. With the information at hand, we expect that our
actions can largely mitigate adverse direct impacts of tariffs. However,
visibility in the market is exceptionally limited and the situation is
continuously evolving.
Coming back to the first quarter, we made good progress regarding the separation
of our Business Areas (BA) into operationally independent companies. The
organization was already operationally in force two months ahead of schedule in
February. We have already started to see the benefits of this, with the Business
Areas taking independent P&L decisions, for example, related to their cost
management practices.
In recent years, we have been transforming Vita and carefully building its
foundations. In April, we were happy to announce the next step in Vita's
transformation - Daniel Lalonde's appointment as the new CEO of Business Area
Vita. With Daniel's impressive track record in building world-class luxury
brands, I am convinced that he will bring visionary leadership to Vita to tap
into long-term growth opportunities.
Looking at Business Area Vita's financials, its comparable net sales in the
first quarter increased by 1%, especially as the Royal Copenhagen and Moomin
Arabia brands continued their good growth. Both brands are also celebrating
significant anniversaries this year, which we are leveraging commercially. In
addition, one year since its brand renewal, Iittala also delivered a good
quarter. BA Vita's comparable EBIT increased to EUR 1.3 million, and its gross
margin grew by 90 bps, reaching 56.3%.
Business Area Fiskars' first quarter comparable net sales grew by 3%, driven
particularly by distribution gains in the U.S. and successful campaigns in
Europe, for instance in Germany. Our team in Finland also brought in good
growth. BA Fiskars' comparable EBIT increased to EUR 30.6 million, and its gross
margin decreased by 160 bps to 40.7% due to high base effect.
Fiskars Group's strategy is built on four transformation levers - commercial
excellence, Direct-to-Consumer (DTC), the U.S., and China. Looking at the first
quarter of 2025, our gross margin, which is our key performance indicator for
commercial excellence, decreased by 80 bps to 47.5%. Comparable DTC sales grew
by 9%, thanks to good growth in both online and offline channels. Comparable net
sales in China decreased by 7% due to continued low consumer confidence. In the
U.S., comparable net sales increased by 6%, driven by the Fiskars brand's
distribution gains.
When it comes to sustainability, I am happy to announce that we have achieved
the Leadership level, receiving an A- rating for our climate actions in an
assessment by the global non-profit organization CDP.
We take pride in fostering an ownership culture within the company, and during
the first quarter, we announced the third plan period of our global employee
share savings plan, “MyFiskars”. Already 13% of all our employees and 24% of
office employees have taken part in the first two programs, demonstrating our
people's commitment to the company and trust in our navigation of challenging
market conditions.
We made a positive start to the year, with the first organic growth quarter
since the second quarter of 2022. While the market environment remains volatile
with exceptionally limited visibility, we continue the year ahead from a strong
position and are focusing on the actions in our own hands.”
Group key figures
[][][][]
EUR million (unless otherwise Q1 2025 Q1 2024 Change 2024
noted)
Net sales 291.9 282.9 3.2% 1,157.1
Comparable net sales[1)] 291.9 286.9 1.7% 1,161.7
EBIT -4.6 6.4 37.1
Items affecting comparability in 31.4 18.7 67.6% 74.3
EBIT[2)]
Comparable EBIT[3)] 26.8 25.1 6.8% 111.4
Comparable EBIT margin 9.2% 8.9% 9.6%
EBITDA 14.3 26.4 -45.9% 119.6
Comparable EBITDA[4)] 45.7 44.9 1.6% 193.5
Profit before taxes -16.1 3.6 18.5
Profit for the period -13.1 2.4 27.3
Earnings per share, EUR -0.16 0.03 0.33
Comparable earnings per share, EUR 0.15 0.19 -18.7% 1.07
Cash earnings per share (CEPS), -0.12 -0.16 25.0% 1.39
EUR
Equity per share, EUR 8.73 9.34 -6.5% 9.80
Cash flow from operating -2.1 -5.5 61.3% 145.4
activities before financial items
and taxes
Free cash flow -17.4 -20.1 13.5% 81.7
Free cash flow/comparable net 105.4% 208.1% 94.8%
profit (LTM), %
Net debt 563.4 510.0 10.5% 493.9
Net debt/comparable EBITDA (LTM), 2.90 2.92 -0.6% 2.55
ratio
Equity ratio, % 42% 45% 47%
Net gearing, % 79% 67% 62%
Capital expenditure 8.7 10.8 -19.5% 52.5
Personnel (FTE), average 6,195 6,535 -5.2% 6,446
1. Comparable net sales exclude the impact of exchange rates, acquisitions and
divestments.
2. In Q1 2025, items affecting comparability were mainly related to Digital &
IT assets write-off. The write-off concerns Fiskars Group's transition from its
digital platform to SaaS-based Direct-to-Consumer services.
3. EBIT excluding items affecting comparability. Comparable EBIT is not
adjusted to exclude the EBIT contribution of acquisitions/divestments/disposals.
4. EBITDA excluding items affecting comparability. Comparable EBITDA is not
adjusted to exclude the EBIT contribution of acquisitions/divestments/disposals.
FISKARS CORPORATION
Nathalie Ahlström
President and CEO
Webcast
A results webcast will be held on April 24, 2025 at 11.00 a.m. (EEST). It will
be held in English and can be followed at https://fiskars.events.inderes.com/q1
-2025
Management presentation is followed by a Q&A session. Questions can be placed
through the webcast chat function or by phone. To ask questions by phone, the
participant is required to register
at https://palvelu.flik.fi/teleconference/?id=50051613. After the registration
you will receive the phone number and conference ID to access the conference. If
you wish to ask a question, please press *5 on your telephone keypad to enter
the queue.
Presentation materials will be available at www.fiskarsgroup.com.
An on-demand version of the webcast will be available on the Group's website.
Personal details gathered during the event will not be used for any other
purpose.
Further information:
Sanna Hellstedt, Director, Investor Relations (interim) and External
Communications, tel. +358 40 553 3151
Fiskars Group in brief
Fiskars Group (FSKRS, Nasdaq Helsinki) is the global home of design-driven
brands for indoor and outdoor living. Since 1649, we have designed products of
timeless, purposeful, and functional beauty, while driving innovation and
sustainable growth. In 2024, Fiskars Group's global net sales were EUR 1.2
billion and we had close to 7,000 employees. We have two Business Areas (BA),
Vita and Fiskars.
BA Vita offers premium and luxury products for the tableware, drinkware, jewelry
and interior categories. Its well-known brands include Georg Jensen, Royal
Copenhagen, Wedgwood, Moomin Arabia, Iittala and Waterford. In 2024, BA Vita's
reported net sales were EUR 605 million. Already 50% of BA Vita's net sales
comes from direct-to-consumer sales, comprising approximately 500 stores and
approximately 60 e-commerce sites.
BA Fiskars consists of the gardening and outdoor categories, in addition to the
scissors and creating, as well as cooking categories. The brands include Fiskars
and Gerber. In 2024, BA Fiskars' net sales were EUR 547 million.
Read more: fiskarsgroup.com