Stock Exchange Release
April 26, 2019 at 8:30 a.m. (EEST)
FISKARS GROUP INTERIM REPORT JANUARY-MARCH 2019: Positive development in comparable EBITA and cash flow, comparable net sales decreased
This release is a summary of the Fiskars Corporation’s January–March 2019 interim report published today. The complete interim 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 the interim reports only, but should review the complete interim reports with tables.
First quarter 2019 in brief:
- Net sales increased by 1.0% to EUR 268.6 million (Q1 2018: 266.1)
- Comparable net sales1) decreased by 1.4% to EUR 268.6 million (272.5)
- EBITA decreased by 8.6% to EUR 20.1 million (22.0)
- Comparable2) EBITA increased by 9.9% to EUR 25.9 million (23.6)
- Cash flow from operating activities before financial items and taxes was EUR -25.8 million (-39.2)
- Earnings per share (EPS) were EUR 0.21 (0.20)
Outlook for 2019 unchanged:
In 2019, Fiskars Group expects the comparable net sales1) and comparable2) EBITA to be at the same level as in 2018.
The outlook is influenced by the company’s investments in growth initiatives that are expected to add sustainable value in the long-term. In addition, there are material risks relating to changes in the operating environment, e.g. Brexit and the U.S. tariffs. An unfavorable outcome of these risks might have a significant impact on the comparable net sales and comparable EBITA. Furthermore, fluctuations in currency rates might also have a considerable impact on comparable EBITA.
President and CEO, Fiskars Group, Jaana Tuominen:
Solid net sales development in Europe in the Functional segment drove our improvements in performance during the first quarter of 2019. I was also pleased with the Living segment’s net sales growth in Asia. The unfavorable weather conditions and slow start to the gardening season in the U.S. adversely impacted our net sales.
We are making progress with the Living transformation program, in line with the plans. I am confident that we can strengthen our brands, increase efficiency, and accelerate long-term strategic development as we execute the program. We continued to deliver on our strategy to focus on branded consumer goods and announced the sale of the Leborgne business, which has not been part of our core portfolio.
As we have said earlier, we are investing in growth initiatives that are expected to add sustainable value in the long-term. Net sales in the direct e-commerce channel has grown during the past few quarters and this growth also continued in the first quarter. E-commerce is one of the areas where we will improve our competitiveness, both in terms of our direct e-commerce as well as in supporting our trade partners.
Looking forward to the rest of 2019, we see good momentum as we move into the important quarters to come. I expect our sales performance to improve as we leverage the pockets of growth that are available in our markets. Our pursuit of growth is supported by our strong brands, trade relationships and presence across the globe.
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||Q1 2019||Q1 2018||Change||2018|
|Comparable net sales1)||268.6||272.5||-1.4%||1,142.5|
|Items affecting comparability in EBITA2)||-5.8||-1.6||-9.2|
|Operating profit (EBIT)||16.9||19.0||-11.0%||91.6|
|Profit before taxes||22.7||25.1||103.0|
|Profit for the period||17.6||16.5||81.7|
|Net change in the fair value of investment portfolio||-1.3||13.6||-118.8|
|Equity per share. EUR||14.96||15.14||-1.2%||14.80|
|Cash flow from operating activities before financial items and taxes3)||-25.8||-39.2||34.0%||136.8|
|Equity ratio. %3)||65%||68%||70%|
|Net gearing. %3)||26%||18%||11%|
|Personnel (FTE). average||7,029||7,410||-5.1%||7,304|
1) Using comparable exchange rates
2) In Q1 2019. items affecting comparability consisted mainly of items related to the Living transformation program
3) Figures impacted by the application of the IFRS 16 accounting standard. Excluding the impact from IFRS 16. the equity ratio in Q1 2019 would have been 70% and the net gearing 19%. The change had a positive impact of EUR 6 million on the cash flow from operating activities before financial items and taxes
CHANGES IN FISKARS GROUP REPORTING IN 2019
On January 1. 2019. the Group adopted IFRS 16 Leases. All the lessees’ lease agreements are booked as right-of-use assets and liabilities in the balance sheet. Exceptions are short-term contracts with a duration of less than 12 months and lease contracts for which the underlying asset has a low value. The Group adopted the standard with a cumulative catch-up transition method. without restating prior periods.
For the full year 2019. the positive impact to EBIT/EBITA will be approximately EUR 1 million. resulting from the decrease of lease expenses and increase of depreciation from the right-of-use assets. EBITDA is affected in addition with the amount of depreciation. increasing about EUR 23 million. Interest expenses will be increased approximately by EUR 2 million. Total estimated impact to the profit for the period is EUR -1 million.
More information on reporting changes is provided in the accounting principles section of this Interim Report.
President and CEO
- President and CEO Jaana Tuominen. tel. +358 204 39 5500
- CFO Sari Pohjonen. tel. +358 204 39 5773
- Corporate Communications. tel. +358 204 39 5031. firstname.lastname@example.org
Analyst and media conference
A combined live webcast and presentation for analysts and media on the first quarter results will be held on April 26. 2019 at 11:00 a.m. at the company’s headquarters. Fiskars Campus. Hämeentie 135 A. Helsinki. Presentation materials will be available at www.fiskarsgroup.com.
The conference call will be held in English https://fiskars.videosync.fi/2019-q1-results
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. email@example.com
Making the everyday extraordinary
Fiskars Group’s purpose is to make the everyday extraordinary. With our family of lifestyle brands including Fiskars. Gerber. Iittala. Royal Copenhagen. Waterford. and Wedgwood. we want to create a positive. lasting impact on our quality of life. Our products are available in more than 100 countries and we employ around 7.900 people in over 30 countries. Please visit us at www.fiskarsgroup.com for more information.