FISKARS OYJ ABP Fiskars Group
Interim report
January-September 2021
INTERIM REPORT JANUARY-SEPTEMBER 2021
Sixth consecutive quarter of net sales growth, with Business Area Vita as the main driver in Q3
THIRD QUARTER 2021 IN BRIEF: | JANUARY-SEPTEMBER 2021 IN BRIEF: |
• Net sales increased by 9.4% to EUR 291.8 million | • Net sales increased by 12.2% to EUR 901.2 million |
(Q3 2020: 266.7) | (Q1-Q3 2020: 802.9) |
• Comparable net sales1 increased by 10.0% to EUR | • Comparable net sales1 increased by 15.6% to EUR |
291.8 million (265.4) | 901.2 million (779.8) |
• EBITA decreased by 1.3% to EUR 38.6 million (39.1) | • EBITA increased by 65.1% to EUR 129.6 million (78.5) |
• Comparable2 EBITA decreased by 3.1% to EUR 38.0 | • Comparable2 EBITA increased by 52.9% to EUR 132.7 |
million (39.3) | million (86.8) |
• Cash flow from operating activities before financial | • Cash flow from operating activities before financial items |
items and taxes decreased to EUR 51.9 million (115.6) | and taxes decreased to EUR 109.3 million (134.0) |
• Earnings per share (EPS) were EUR 0.36 (0.33) | • Earnings per share3 (EPS) were EUR 0.84 (0.53) |
OUTLOOK FOR 2021 UPGRADED ON OCTOBER 13:
On October 13, 2021, Fiskars upgraded its outlook for 2021. The company expects the comparable EBITA for 2021 to be in the range of EUR 160-170 million. According to the previous outlook issued on June 23, 2021, the comparable EBITA in 2021 was expected to be in the range of EUR 140-160 million.
The upgrade was based on the company's better than expected financial performance during the third quarter, in particular towards the end of the quarter. A central factor was that Fiskars has so far successfully mitigated the global supply chain challenges, which have previously been highlighted as a material risk for the full-year financial performance.
The seasonality of both trade and consumer demand may continue to differ from a typical year, also towards the end of the year. Trade customers may seek to secure the availability of products by pulling forward orders from the first quarter of 2022 into the fourth quarter of 2021. In addition, there are ongoing challenges in global supply chains as well as raw material and energy price inflation. While the company has managed to mitigate these factors, they continue to pose a risk.
- Comparable net sales excludes the impact of exchange rates, acquisitions and divestments.
- Items affecting comparability in EBITA includes items such as restructuring costs, impairment or provision charges and releases, integration-related costs, and gain and loss from the sale of businesses.
- EPS in Q1 2021 impacted negatively by the unfavorable ruling in the tax dispute (EUR 0.35 per share).
Fiskars Group Q3 2021 | 29.10.2021 | 2 |
CEO'S REVIEW
We continued on a strong growth path in the third quarter, marking the sixth consecutive quarter of growth. At the same time, this was our highest third- quarter net sales ever. Comparable EBITA fell somewhat behind the record high level seen last year.
Our financial performance improved towards the end of the quarter in all Business Areas. Comparable net sales increased in Vita and Crea, while it was at the previous year's level in Terra. For Terra and Crea, the comparison figures from 2020 were at record levels.
Despite challenges in the global supply chains, we have successfully served our customers, which has been a competitive advantage for us. The risks related to product availability are still ongoing. In addition, raw material and logistics prices continue to increase. A new factor is the increase in energy prices, which impacts Vita in particular. We continue to mitigate these factors. However, there might be a lag with the timing of the cost inflation and the effect of the actions.
During the second half of the year, we are investing more in our growth levers. These investments are mostly related to our digital operations, to develop our capabilities within data, direct-to-consumer and the consumer experience. During the third quarter, we opened approximately 50 new positions to support our Digital growth initiative. We have also made changes to our current IT operations, which will bring savings from 2022 onwards. We expect these upfront investments to be covered by future savings.
Our two ongoing restructuring programs are coming to an end. In the half-year financial report of 2021 we gave an update on the Vita transformation program. We can now confirm that the Restructuring program will also be completed by the end of 2021. We expect that the majority of the benefits will be realized by the end of 2021. Additionally, the costs of the programs will be significantly lower than originally anticipated. In other words, 2021 will mark the completion of both programs, delivering the savings we targeted and with costs below our initial expectations.
Our focus is now on ensuring the shipments for the important last quarter of the year. At the same time, we continue to implement our strategy to create organic growth for the longer term. As part of our growth plans, we announced a new global strategic partnership with Moomin Characters, as we announced the acquisition of a minority stake in Rights & Brands, a licensing agency representing iconic Nordic brands such as the Moomins. We look forward to discussing our growth strategy in more detail at our Capital Markets Day on November 9, 2021.
NATHALIE AHLSTRÖM
President & CEO
Fiskars Group Q3 2021 | 29.10.2021 | 3 |
GROUP KEY FIGURES
EUR million | Q3 | Q3 | Q1-Q3 | Q1-Q3 | |||
2021 | 2020 | Change | 2021 | 2020 | Change | 2020 | |
Net sales | 291.8 | 266.7 | 9.4% | 901.2 | 802.9 | 12.2% | 1,116.2 |
Comparable net sales1) | 291.8 | 265.4 | 10.0% | 901.2 | 779.8 | 15.6% | 1,096.9 |
EBITA | 38.6 | 39.1 | -1.3% | 129.6 | 78.5 | 65.1% | 125.8 |
Items affecting comparability in EBITA2) | 0.6 | -0.1 | -3.1 | -8.3 | -62.6% | -11.0 | |
Comparable EBITA | 38.0 | 39.3 | -3.1% | 132.7 | 86.8 | 52.9% | 136.8 |
Operating profit (EBIT) | 34.7 | 35.6 | -2.5% | 119.0 | 64.7 | 83.9% | 98.0 |
Profit before taxes | 37.8 | 34.6 | 9.1% | 120.0 | 59.4 | 102.1% | 89.8 |
Profit for the period | 29.8 | 27.0 | 10.2% | 69.3 | 43.2 | 60.4% | 68.5 |
Earnings per share, EUR3) | 0.36 | 0.33 | 9.8% | 0.84 | 0.53 | 60.1% | 0.83 |
Equity per share, EUR | 51.9 | 9.68 | 9.08 | 9.30 | |||
Cash flow from operating activities before financial items and | 115.6 | -55.1% | 109.3 | 134.0 | -18.4% | 223.8 | |
taxes | |||||||
Equity ratio, % | 58% | 51% | 57% | ||||
Net gearing, % | 17% | 29% | 19% | ||||
Capital expenditure | 7.3 | 8.8 | -16.4% | 21.6 | 20.5 | 5.3% | 30.0 |
Personnel (FTE), average | 6,157 | 6,027 | 2.2% | 6,033 | 6,140 | -1.8% | 6,104 |
- Comparable net sales excludes the impact of exchange rates, acquisitions and divestments.
- In Q3 2021, items affecting comparability consisted of items related to the transformation and restructuring programs.
- EPS in Q1 2021 impacted negatively by the unfavorable ruling in the tax dispute (EUR 0.35 per share).
Fiskars Group Q3 2021 | 29.10.2021 | 4 |
GROUP PERFORMANCE
EUR million | Q3 | Q3 | Comparable Q1-Q3Q1-Q3 | Comparable | |||||
2021 | 2020 | Change | change* | 2021 | 2020 | Change | change* | 2020 | |
Net sales | |||||||||
Group | 291.8 | 266.7 | 9.4% | 10.0% | 901.2 | 802.9 | 12.2% | 15.6% | 1,116.2 |
Vita | 133.8 | 111.0 | 20.6% | 20.2% | 357.6 | 285.5 | 25.2% | 26.3% | 456.6 |
Terra | 111.5 | 113.1 | -1.4% | -0.3% | 417.2 | 396.0 | 5.4% | 9.9% | 493.8 |
Crea | 45.6 | 41.5 | 10.0% | 11.0% | 123.7 | 118.5 | 4.4% | 8.4% | 162.0 |
Other | 0.9 | 1.1 | -22.1% | -22.1% | 2.6 | 2.9 | -8.0% | -8.0% | 3.8 |
Comparable EBITA | |||||||||
Group | 38.0 | 39.3 | -3.1% | 132.7 | 86.8 | 52.9% | 136.8 | ||
Vita | 26.6 | 14.7 | 80.7% | 53.0 | 3.2 | 41.0 | |||
Terra | 7.6 | 13.4 | -43.1% | 58.4 | 59.9 | -2.4% | 67.5 | ||
Crea | 11.9 | 14.2 | -16.2% | 32.0 | 32.5 | -1.5% | 41.1 | ||
Other | -8.0 | -3.0 | -10.8 | -8.8 | -22.9% | -12.8 |
*Comparable net sales excludes the impact of exchange rates, acquisitions and divestments.
NET SALES, EUR MILLION
350 | 313.3 | 302.1 | 307.2 | 291.8 | |||||||
300 | 266.7 | ||||||||||
250 | |||||||||||
200 | |||||||||||
150 | |||||||||||
100 | |||||||||||
50 | |||||||||||
0 | |||||||||||
Q3 2020 | Q4 2020 | Q1 2021 | Q2 2021 | Q3 2021 | |||||||
FISKARS GROUP NET SALES IN Q3 2021
NET SALES SPLIT BY SEGMENT, JANUARY- SEPTEMBER 2021
13.7% 0.3%
39.7% | Vita | ||
Terra | |||
Crea | |||
46.3% | Other | ||
FISKARS GROUP NET SALES IN Q1-Q3 2021
Fiskars Group's consolidated net sales increased by 9.4% to EUR 291.8 million (Q3 2020: 266.7). Comparable net sales increased by 10.0%, driven by the Vita and Crea segments. In Terra, the comparable net sales remained close to the previous year's level.
Net sales increased in all channels and most markets, with the exception of the Americas and Australia. The decrease in the Americas came from the Terra and Crea segments, which were up against a strong level seen in Q3 2020.
On the positive side, net sales growth was strong in for example Sweden and China. Additionally, net sales grew in the UK, which has been a challenging market for us in the last few years.
Fiskars Group's consolidated net sales increased by 12.2% to EUR 901.2 million (Q1-Q3 2020: 802.9). Comparable net sales increased by 15.6%, supported by all Business Areas and nearly all channels. Strong demand supported the increase in net sales.
Fiskars Group Q3 2021 | 29.10.2021 | 5 |
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Fiskars Oyj Abp published this content on 29 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 October 2021 08:18:04 UTC.
