Fiskars - Financial Statement Release

Fiskars Corporation's Financial Statement Release 2024

Fiskars Corporation
Financial Statement Release
February 6, 2025 at 8:30 a.m. (EET)

Fiskars Corporation's Financial Statement Release 2024

Strong finish to the year in challenging market conditions - Full-year
comparable EBIT increased slightly, despite lower volumes

This release is a summary of Fiskars Corporation's Financial Statement
Release 2024 published today. The complete Financial Statement Release with
tables is attached to this release as a pdf-file. It is also available
at https://fiskarsgroup.com/investors/reports-and-presentations/annual-and
-interim-reports/ and on the Group's website at www.fiskarsgroup.com. Investors
should not rely on summaries of financial reports only, but should review the
complete reports with tables.

October-December 2024 in brief:

  · Comparable net sales[1] decreased by 2.4% to EUR 337.2 million (Q4 2023:
345.5). Reported net sales decreased by 2.5% to EUR 337.2 million (345.8).
  · Comparable EBIT[2] increased to EUR 42.9 million (37.7), or 12.7% (10.9%) of
net sales. EBIT decreased to EUR 30.9 million (34.0).
  · Cash flow from operating activities before financial items and taxes
decreased to EUR 88.8 million (101.4).
  · Free cash flow decreased to EUR 69.4 million (77.5).
  · Comparable earnings per share were EUR 0.57 (0.40). Earnings per share (EPS)
were EUR 0.45 (0.35).

January-December 2024 in brief:

  · Comparable net sales[1] decreased by 5.0% to EUR 1,018.1 million (2023:
1,071.4). Reported net sales increased by 2.4% to EUR 1,157.1 million (1,129.8).
  · Comparable EBIT[2] increased to EUR 111.4 million (110.3), or 9.6% (9.8%) of
net sales. EBIT decreased to EUR 37.1 million (98.9).
  · Cash flow from operating activities before financial items and taxes
decreased to EUR 145.4 million (247.5).
  · Free cash flow decreased to EUR 81.7 million (184.9).
  · Comparable earnings per share were EUR 1.07 (0.99). Earnings per share (EPS)
were EUR 0.33 (0.86).

1) Comparable net sales exclude 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, acquisition-related costs,
and gains and losses from the sale of businesses. Comparable EBIT is not
adjusted to exclude the EBIT contribution of acquisitions/ divestments/
disposals.

Proposal for the distribution of dividend

The Board of Directors proposes to the Annual General Meeting that a dividend of
EUR 0.84 per share shall be paid for the financial period that ended on December
31, 2024. The dividend shall be paid in two instalments of EUR 0.42 per share
each.

Guidance for 2025

Fiskars Corporation expects comparable EBIT to improve from the 2024 level
(2024: EUR 111.4 million).

Assumptions behind the guidance

The operating environment is expected to remain challenging and impact demand in
2025. Visibility in the market remains limited, as uncertainties in the global
economy persist.

Further gross margin improvement is expected to support EBIT in 2025. The
savings from completed organizational changes are also expected to continue
supporting EBIT improvement together with other further efficiency improvement
actions.

The Group's EBIT generation is seasonally tilted towards the end of the year,
highlighting the importance of the second half and especially the fourth
quarter. During this period, the development of Business Area Vita's volumes
will play a significant role.

President and CEO, Fiskars Group, Nathalie Ahlström:

“We had a strong finish to the year as we delivered an all-time high comparable
EBIT for a fourth quarter, EUR 43 million. The increase was driven by a clear
improvement in gross margin and continued prudent cost management. This is
testament to our teams' resilience and hard work in a challenging operating
environment globally. The full-year comparable EBIT was EUR 111 million,
increasing slightly from the previous year. This increase was predominantly
driven by Business Area Fiskars.

In 2024, our comparable net sales decreased by 5% as low consumer confidence
affected demand. Our reported net sales, which include Georg Jensen, increased
by 2%. We were able to deliver improved profitability despite lower volumes
especially in the fourth quarter when we delivered an all-time high gross
margin, increasing by 260 bps from the previous year. I am also happy to share
that our full-year gross margin reached 48.8%, placing us more than well on
track with our ambition of achieving a gross margin of over 49% in 2025.

Another highlight was the good work done regarding our leverage target. We ended
the year with our net debt/EBITDA at 2.55x, which is just shy of our target
level of 2.5x. This was supported by our systematic cash flow management and
strong cash flow in the fourth quarter.

In the fourth quarter, we continued our transformation and announced plans to
separate our Business Areas Fiskars and Vita into operationally independent
companies to accelerate their different strategic growth opportunities and
expedite serving their investment needs. These plans have been exceptionally
well received. Internally, our employees have truly embraced the possibility to
take ownership of market opportunities specific to their respective brands.
Externally, this way of operating offers increased transparency and
measurability, for example.

Looking at Business Area Vita, its comparable net sales in 2024 decreased by 6%,
whereas its reported net sales increased by 9% to EUR 605 million. Denmark is
now clearly the largest country for BA Vita and the second largest at the Group
level after the U.S. following the Georg Jensen acquisition. As a highlight, the
Royal Copenhagen and Moomin Arabia brands delivered good growth, driven by
strong commercial execution, especially at the end of the year. BA Vita's
comparable EBIT decreased to EUR 48 million due to lower volumes.

Business Area Fiskars' 2024 net sales decreased by 4% to EUR 547 million due to
low consumer confidence and retailer customers' cautious inventory management.
Despite the lower overall volumes, a great example of how we are taking growth
into our own hands is how the Fiskars brand managed to expand its distribution
in Germany - our teams delivered exceptionally strong growth in this flat market
in the fourth quarter. BA Fiskars succeeded in increasing its comparable EBIT to
EUR 77 million by improving its gross margin and executing prudent cost
management, especially in the supply chain.

In line with our strategy, we continue building on growth fundamentals which
will elevate us once the market environment improves. Our transformation levers
- commercial excellence, Direct-to-Consumer (DTC), the U.S., and China, play an
integral role in delivering our ambitions. Looking at 2024, our gross margin,
which is our key performance indicator for commercial excellence, increased by
200 bps. Comparable DTC sales, comprising our approximately 500 stores and
approximately 60 e-commerce sites, were flattish, decreasing by 1%, partially
due to a decline in own e-commerce in China. Total comparable net sales in China
were resilient, increasing by 1%. In the U.S., comparable net sales decreased by
7% as retailers' cautious inventory management continued to affect demand.

In 2024, we made good progress in sustainability. We were awarded multiple
international and local recognitions for our ESG work, such as the Platinum
level sustainability rating from EcoVadis. Another highlight was the progress we
made in our circularity target - at the end of 2024, we were already at 26%,
almost doubling from previous year's 14%.

I would like to thank all our employees, customers and partners for 2024, which
marked the 375th anniversary of Fiskars. In 2025, we yet again get to celebrate
other important milestones, as Royal Copenhagen turns 250 years, and Moomin
celebrates its 80th anniversary. These celebrations will feature exciting
consumer events and special anniversary collectibles.

Looking at 2025, the operating environment is expected to remain challenging and
impact demand. We are expecting to improve comparable EBIT from the 2024 level
with the Group's EBIT generation seasonally tilted towards the end of the year.

During the year, we will invest in demand creation to accelerate our
distribution and category expansion. For example, Vita will continue to focus on
surrounding the consumer through its product offering, while Fiskars will invest
significantly in innovation.

Throughout 2024, we focused on making a difference with the actions in our own
hands. By strengthening our foundation, we aim to reignite growth and improve
our performance in the long run.”

Group key figures

[][][][]
EUR million        Q4     Q4     Change  2024     2023     Change
(unless otherwise  2024   2023
noted)
Net sales          337.2  345.8  -2.5%   1,157.1  1,129.8  2.4%
Comparable net     337.2  345.5  -2.4%   1,018.1  1,071.4  -5.0%
sales [1)]
EBIT               30.9   34.0   -9.0%   37.1     98.9     -62.4%
Items affecting    12.0   3.7            74.3     11.4
comparability in
EBIT[2)]
Comparable         42.9   37.7   13.9%   111.4    110.3    1.1%
EBIT[3)]
Comparable EBIT    12.7%  10.9%          9.6%     9.8%
margin
EBITDA             51.6   53.9   -4.2%   119.6    164.9    -27.5%
Comparable         63.1   57.6   9.6%    193.5    175.8    10.0%
EBITDA[4)]
Profit before      26.9   25.0   7.5%    18.5     79.7     -76.8%
taxes
Profit for the     36.8   28.0   31.5%   27.3     70.0     -61.0%
period
Earnings per       0.45   0.35   31.0%   0.33     0.86     -61.3%
share, EUR
Comparable         0.57   0.40   43.8%   1.07     0.99     7.7%
earnings per
share, EUR
Cash earnings per  0.85   1.11   -23.3%  1.39     2.68     -48.2%
share (CEPS),
EUR
Equity per share,                        9.80     10.15    -3.3%
EUR
Cash flow from     88.8   101.4  -12.4%  145.4    247.5    -41.3%
operating
activities before
financial items
and taxes
Free cash flow     69.4   77.5   -10.4%  81.7     184.9    -55.8%
Free cash                                94.8%    231.0%
flow/comparable
net
profit
(LTM), %
Net debt                                 493.9    446.7    10.6%
Net                                      2.55     2.54     0.5%
debt/comparable
EBITDA (LTM),
ratio
Equity ratio, %                          47%      47%
Net gearing, %                           62%      54%
Capital            15.2   18.4   -17.1%  52.5     50.8     3.4%
expenditure
Personnel (FTE),   6,364  6,714  -5.2%   6,446    6,133    5.1%
average

1) Comparable net sales exclude the impact of exchange rates, acquisitions and
divestments.
2) In Q4 2024, items affecting comparability were mainly related to
organizational changes.
3) EBIT excluding items affecting comparability. Comparable EBIT is not adjusted
to exclude the EBIT contribution of acquisitions/divestments/disposals.
4) EBITDA excluding items affecting comparability. Comparable EBITDA is not
adjusted to exclude the EBIT contribution of acquisitions/divestments/disposals.

FISKARS CORPORATION

Nathalie Ahlström
President and CEO

Webcast

A webcast on the fourth quarter and full year results will be held on February
6, 2025 at 11:00 a.m. (EET). It will be held in English and can be followed
at https://fiskars.events.inderes.com/q4-2024.

Presentation materials will be available at www.fiskarsgroup.com.

An on-demand version of the webcast will be available on the Group's website.
Personal details gathered during the event will not be used for any other
purpose.

Media and investor contacts:

Sanna Hellstedt, Director, Investor Relations (interim) and External
Communications, tel. +358 40 553 3151

Fiskars Group in brief

Fiskars Group (FSKRS, Nasdaq Helsinki) is the global home of design-driven
brands for indoor and outdoor living. Since 1649, we have designed products of
timeless, purposeful, and functional beauty, while driving innovation and
sustainable growth. In 2024, Fiskars Group's global net sales were EUR 1.2
billion and we had close to 7,000 employees. We have two Business Areas (BA),
Vita and Fiskars.

BA Vita offers premium and luxury products for the tableware, drinkware, jewelry
and interior categories. Its well-known brands include Georg Jensen, Royal
Copenhagen, Wedgwood, Moomin Arabia, Iittala and Waterford. In 2024, BA Vita's
reported net sales were EUR 605 million. Already 50% of BA Vita's net sales
comes from direct-to-consumer sales, comprising approximately 500 stores and
approximately 60 e-commerce sites.

BA Fiskars consists of the gardening and outdoor categories, in addition to the
scissors and creating, as well as cooking categories. The brands include Fiskars
and Gerber. In 2024, BA Fiskars' net sales were EUR 547 million.

Read more: fiskarsgroup.com

Attachments:

02062976.pdf