Half-year financial report
Broad-based sales growth, comparable EBIT stable despite cost inflation
This release is a summary of the
April-
- Net sales increased by 3.9% to
EUR 319.1 million (Q2 2021: 307.2) -
Comparable net sales1 increased by 7.7% to
EUR 319.1 million (296.1) -
EBIT increased to
EUR 39.5 million (38.5) -
Comparable EBIT2 decreased by 12.2% and was
EUR 36.3 million (41.4), or 11.4% (13.5%) of net sales -
Cash flow from operating activities before financial items and taxes decreased to
EUR 16.0 million (46.7) -
Free cash flow was
EUR -3.1 million (34.5) -
Earnings per share (EPS) were
EUR 0.41 (0.38)
January-
- Net sales increased by 6.9% to
EUR 651.7 million (Q1-Q2 2021: 609.4) -
Comparable net sales1 increased by 10.6% to
EUR 651.7 million (589.1) -
EBIT decreased to
EUR 80.9 million (84.3) -
Comparable EBIT2 was stable at
EUR 88.1 million (88.0), or 13.5% (14.4%) of net sales -
Cash flow from operating activities before financial items and taxes decreased to
EUR -39.9 million (57.4) -
Free cash flow was
EUR -73.0 million (31.7) -
Earnings per share (EPS) were
EUR 0.79 (0.48)
1) Comparable net sales excludes 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, integration-related costs, and gains and losses from the sale of businesses
Outlook for 2022 (unchanged):
Fiskars expects comparable EBIT to increase from 2021 (2021:
Fiskars closely monitors the development of consumer confidence, which has dropped to low levels in many of the company's key markets and could impact the demand for its products in the second half.
Furthermore, the challenges relating to global supply chains and raw material and energy price inflation continue. While the company has managed to mitigate the impacts of these factors, they continue to pose a risk for 2022 performance. The company expects that there will be volatility between the quarters due to timing differences between cost inflation and the respective mitigating actions.
President and CEO,
The second quarter marked the ninth consecutive quarter of growth for
In line with our expectations, our comparable EBIT for the second quarter declined from last year's record high. We have actions in place to mitigate the significant input cost increases caused especially by the war in
We have been able to serve our customers and avoid any major product availability challenges despite the disruptions in the global supply chains. This has required higher inventories impacting cash flow negatively. We are targeting lower inventory levels towards the end of the year. However, this is dependent on how the global supply chain situation develops.
We continue to move forward with our Growth Strategy at full speed and we can clearly see that it is delivering results. Looking at the first half of the year, we have made good progress in our four transformation levers: commercial excellence; direct-to-consumer (DTC); the
In terms of commercial excellence, the broad-based sales growth in all business areas and the only slightly declining gross margin in the first half of the year in this inflationary environment demonstrate the power of our brands. The mid-teen growth in DTC in the first half illustrates that the investments we are making are paying off. Our sales in the
One of the key enablers in our strategy is sustainability and we continue to make good progress towards our goals. The sustainability highlight of the second quarter was the announcement of further collaboration between
With half the year now behind us, we keep our guidance for 2022 intact and confirm that we expect comparable EBIT to increase from 2021. However, the operating environment continues to be unpredictable and volatile and not all impacts on our business can be foreseen. During the quarter, consumer confidence hit low levels in many regions, which could have an impact on demand for our products. We are closely monitoring the development of consumer sentiment, especially in our main markets such as the
Group key figures
EUR million | Q2 2022 | Q2 2021 | Change | Q1-Q2 2022 | Q1-Q2 2021 | Change | 2021 | |||||||
Net sales | 319.1 | 307.2 | 3.9% | 651.7 | 609.4 | 6.9% | 1,254.3 | |||||||
Comparable net sales1) | 319.1 | 296.1 | 7.7% | 651.7 | 589.1 | 10.6% | 1,229.8 | |||||||
EBIT | 39.5 | 38.5 | 2.7% | 80.9 | 84.3 | -4.0% | 142.8 | |||||||
Items affecting comparability in EBIT2) | 3.2 | -2.9 | -7.2 | -3.7 | 94.4% | -11.5 | ||||||||
Comparable EBIT3) | 36.3 | 41.4 | -12.2% | 88.1 | 88.0 | 0.1% | 154.2 | |||||||
Comparable EBIT margin | 11.4% | 13.5% | 13.5% | 14.4% | 12.3% | |||||||||
Profit before taxes | 39.3 | 40.4 | -2.6% | 81.9 | 82.2 | -0.4% | 144.1 | |||||||
Profit for the period | 33.5 | 31.4 | 6.7% | 64.9 | 39.5 | 64.3% | 87.5 | |||||||
Earnings per share, EUR | 0.41 | 0.38 | 7.4% | 0.79 | 0.484) | 65.3% | 1.06 | |||||||
Equity per share, EUR | 10.04 | 9.27 | 8.3% | 9.97 | ||||||||||
Cash flow from operating activities before financial items and taxes | 16.0 | 46.7 | -65.7% | -39.9 | 57.4 | 164.2 | ||||||||
Free cash flow | -3.1 | 34.5 | -73.0 | 31.7 | 95.3 | |||||||||
Net debt | 221.7 | 146.0 | 51.9% | 145.0 | ||||||||||
Net Debt/EBITDA (LTM) | 1.11 | 0.65 | 70.6% | 0.71 | ||||||||||
Equity ratio, % | 52 % | 56 % | 57 % | |||||||||||
Net gearing, % | 27 % | 19 % | 18 % | |||||||||||
Capital expenditure | 13.5 | 8.2 | 65.5% | 22.9 | 14.2 | 60.6% | 34.4 | |||||||
Personnel (FTE), average | 6,335 | 6,033 | 5.0% | 6,250 | 5,971 | 4.7% | 6,081 | |||||||
1) Comparable net sales excludes the impact of exchange rates, acquisitions and divestments.
2) In Q2 2022, items affecting comparability were mainly related to a change in asset write-downs and provisions related to the decision to withdraw from the Russian market.
3) EBIT excluding items affecting comparability. Comparable EBIT is not adjusted to exclude the impact of acquisitions/divestments such as the divestment of the North American Watering business on
4) In Q1-Q2 2021, earnings per share includes a negative impact of
Nathalie Ahlström
President and CEO
Webcast
A webcast on the second quarter results will be held on
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:
We are driven by our common purpose: Pioneering design to make the everyday extraordinary. Since 1649, we have designed products of timeless, purposeful, and functional beauty, while driving innovation and sustainable growth.
Read more: fiskarsgroup.com
https://news.cision.com/fiskars-corporation/r/fiskars-group-s-half-year-financial-report-for-january-june-2022,c3607895
https://mb.cision.com/Main/17472/3607895/1609878.pdf
(c) 2022 Cision. All rights reserved., source