Stock Exchange Release
Strong progress during the third quarter driven by exceptionally good demand in several categories as well as savings actions
This release is a summary of the
Third quarter 2020 in brief:
· Net sales increased by 7.2% to
· Comparable net sales1) increased by 9.5% to
· EBITA increased to
· Comparable2) EBITA increased to
· Cash flow from operating activities before financial items and taxes increased to
· Earnings per share (EPS) were
January-
· Net sales increased by 7.2% to
· Comparable net sales1) increased by 9.5% to
· EBITA increased to
· Comparable2) EBITA increased to
· Cash flow from operating activities before financial items and taxes increased to
· Earnings per share (EPS) were
Outlook for 2020 reinstated on
In 2020, Fiskars expects the comparable EBITA to increase from 2019.
Interim CEO,
After a highly volatile period in Q2, we continued to focus on improving execution, managing spending and providing solid service to our customers as well as compelling experiences to consumers. We made good progress with our strategic priorities as our direct e-commerce continued to grow by strong double-digit figures in all Business Areas. Likewise, the expansion in
Earlier in the year, we said that we were taking proactive steps to lessen the negative impacts of COVID-19 on our operations. Thanks to these quick and decisive actions we have seen good progress in our profitability. The majority of these savings are temporary in nature, and as such cannot be sustained for a prolonged period of time. On the other hand, the effects of our long-term efficiency actions are also visible in the improved profitability, and these transformation programs continue as planned.
The Business Area Terra maintained its positive momentum and increased net sales, supported by favorable weather and new distribution in the gardening category. In BA Crea, demand increased in the scissors and crafting categories as people spent more time at home. Both BAs significantly improved their comparable EBITA.
In BA Vita, the challenging market situation persisted, as traffic to stores remained weak. Despite the headwinds, I was pleased to see the growth in e-commerce and the increase in comparable EBITA. The improvement in profitability was driven by cost savings and an improved product mix.
The COVID-19 pandemic continues to bring significant uncertainties for the remainder of the year. The fourth quarter of the year has typically been seasonally our most important one, and particularly the gifting season can provide risks as well as opportunities, depending on several factors, including lockdowns, store closures and changes in consumer confidence.
I want to thank our employees for their resilience during these exceptional times, for their commitment to serving our customers and consumers and their passion and energy for making the everyday extraordinary.
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 | Q3| Q3|Change|Q1-Q3|Q1-Q3|Change| 2019|
| | 2020| 2019| | 2020| 2019| | |
+---------------------------------+-----+-----+------+-----+-----+------+-------+
|Net sales |266.7|248.7| 7.2%|802.9|782.4| 2.6%|1,090.4|
+---------------------------------+-----+-----+------+-----+-----+------+-------+
|Comparable net sales[1)] |266.7|243.6| 9.5%|802.9|777.6| 3.3%|1,075.3|
+---------------------------------+-----+-----+------+-----+-----+------+-------+
|EBITA | 39.1| 7.2| | 78.5| 40.9| 91.9%| 72.9|
+---------------------------------+-----+-----+------+-----+-----+------+-------+
|Items affecting comparability in | -0.1| -6.2| | -8.3|-14.6| 43.2%| -17.7|
|EBITA[2)] | | | | | | | |
+---------------------------------+-----+-----+------+-----+-----+------+-------+
|Comparable EBITA | 39.3| 13.4| | 86.8| 55.5| 56.3%| 90.6|
+---------------------------------+-----+-----+------+-----+-----+------+-------+
|Operating profit (EBIT) | 35.6| 4.1| | 64.7| 31.5|105.2%| 60.1|
+---------------------------------+-----+-----+------+-----+-----+------+-------+
|Profit before taxes | 34.6| 2.3| | 59.4| 36.8| 61.4%| 63.2|
+---------------------------------+-----+-----+------+-----+-----+------+-------+
|Profit for the period | 27.0| 3.7| | 43.2| 31.2| 38.3%| 52.4|
+---------------------------------+-----+-----+------+-----+-----+------+-------+
|Net change in the fair value of | | -0.1| | 0.0|-20.4| | -20.4|
|investment portfolio | | | | | | | |
+---------------------------------+-----+-----+------+-----+-----+------+-------+
|Earnings/share, EUR | 0.33| 0.04| | 0.53| 0.37| 40.5%| 0.63|
+---------------------------------+-----+-----+------+-----+-----+------+-------+
|Equity per share, EUR | | | | 9.08| 9.18| | 9.34|
+---------------------------------+-----+-----+------+-----+-----+------+-------+
|Cash flow from operating |115.6| 10.5| |134.0| 32.8| | 117.5|
|activities before financial items| | | | | | | |
|and taxes | | | | | | | |
+---------------------------------+-----+-----+------+-----+-----+------+-------+
|Equity ratio, % | | | | 51 %| 55 %| | 56 %|
+---------------------------------+-----+-----+------+-----+-----+------+-------+
|Net gearing, % | | | | 29 %| 42 %| | 34 %|
+---------------------------------+-----+-----+------+-----+-----+------+-------+
|Capital expenditure | 8.8| 8.9| -1.8%| 20.5| 27.4|-25.2%| 40.0|
+---------------------------------+-----+-----+------+-----+-----+------+-------+
|Personnel (FTE), average |6,027|6,853|-12.1%|6,140|6,938|-11.5%| 6,840|
+---------------------------------+-----+-----+------+-----+-----+------+-------+
1) Using comparable exchange rates and excluding the Leborgne divestment.
2) In Q3 2020, items affecting comparability consisted mainly of items related to the Transformation program.
Interim CEO and CFO
Further information:
·
Interim CEO and CFO
· Corporate Communications. tel. +358 204 39 5031, communications@fiskars.com
Webcast
A webcast on the third 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:
Corporate Communications, tel. +358 204 39 5031, communications@fiskars.com
Making the everyday extraordinary
https://news.cision.com/fiskars-corporation/r/fiskars-group-interim-report-january-september-2020,c3228213
https://mb.cision.com/Main/17472/3228213/1328213.pdf
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