Stock Exchange Release
October 31, 2018 at 08:15 EET
Fiskars Group launches Transformation program in its Living business
- Three-year program to transform the Living business
- Planned initiatives to simplify and strengthen the business, and drive performance improvement
- Targeted annual cost savings of EUR 17 million, subject to the full implementation of the program
Fiskars Group today launches the Transformation program in its Living business, aimed at increasing efficiency, reducing complexity and accelerating long-term strategic development.
The program will target annual cost savings of approximately EUR 17 million, subject to the full implementation of the program. The targeted cost savings are expected to be achieved gradually, and the majority of the savings are expected to materialize in the Group’s results after the program is completed, which is estimated to be by the end of 2021. The total costs of the program are approximately EUR 40 million in 2018–2021, which will be recorded as items affecting comparability (IAC).
“We have a family of amazing brands in our Living business, and in order to take full advantage of their position in the market, we are planning to make some important changes. These planned changes focus on improving efficiency and reducing complexity. With this program we create a solid platform for long-term profitable growth and better position our brands to thrive and grow in a fast-changing retail environment”, said Ulla Lettijeff, President of Living business, Fiskars Group.
The proposed changes will involve optimization of global retail, distribution and supply networks, as well as the organizational structure, and will focus primarily on the English & Crystal Living business, to improve its profitability. As the planning progresses, Fiskars Group will engage and work closely with its employees and employee representatives to ensure that they are fully informed and consulted about our proposals. Processes and timelines will vary from one country to another.
In 2017, Fiskars Group completed the Supply Chain 2017 -program that focused on the optimization of the global supply chain network in Europe and Asia. The program was launched in September 2015 and excluded the manufacturing operations and distribution network of the English & Crystal Living business, which had been acquired in July 2015.
The Living business offers premium and luxury products for tabletop, giftware and interior décor, and consists of the English & Crystal Living and the Scandinavian Living businesses. The English & Crystal Living business includes brands such as Waterford, Wedgwood, Royal Albert and Royal Doulton. The Scandinavian Living business includes brands such as Iittala, Royal Copenhagen, Rörstrand and Arabia.
Conference call and live web cast
A conference call and live webcast regarding our January-September 2018 financial results and the Transformation program will be held today at 11:30 a.m. (EET). The conference call will be held in English. To participate in the conference call please dial 5-10 minutes prior to the start of the conference. Questions can be asked in English after the presentation. Presentation materials will also be available at www.fiskarsgroup.com.
International dial-in number: +44 (0) 2071 928000
Finland: 09 42450806
Sweden: 08 50692180
Conference ID: 1665279
The presentation can be followed as a live webcast at: https://engage.vevent.com/rt/fiskars/index.jsp?seid=51
An on-demand version of the webcast will be available on the company website later the same day. Personal details gathered during the event will not be used for any other purpose.
Fiskars Group is also hosting a Capital Markets Day on November 8, 2018 in Helsinki.
President and CEO
Media and investor contacts:
VP, Corporate Communications and Sustainability Maija Taimi, tel. +358 204 39 5031, email@example.com
Fiskars - Making the everyday extraordinary
Fiskars serves consumers and customers around the world with globally recognized brands including Fiskars, Gerber, Iittala, Royal Copenhagen, Waterford, and Wedgwood. Building on our mission to create a family of iconic lifestyle brands, Fiskars' vision is to create a positive, lasting impact on our quality of life. Please visit www.fiskarsgroup.com for more information.