Fiskars - Interim report (Q1 and Q3)

Fiskars Corporation Interim Report for January-March 2024

Fiskars Corporation
Interim report
April 25, 2024 at 8:30 a.m. (EEST)

Fiskars Corporation Interim Report for January-March 2024

Solid performance in a challenging operating environment
This release is a summary of Fiskars Corporation's Interim Report for January
-March 2024 published today. The complete Interim Report 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 company website at www.fiskarsgroup.com. Investors
should not rely on summaries of financial reports only, but should review the
complete reports with tables.

January-March 2024 in brief:

  · Comparable net sales[1] decreased by 5.8% to EUR 255.5 million (Q1 2023:
271.2). Reported net sales increased by 2.9% to EUR 282.9 million (274.9).
  · Comparable EBIT[2] decreased to EUR 25.1 million (31.2), or 8.9% (11.4%) of
net sales. EBIT decreased to EUR 6.4 million (28.9).
  · Cash flow from operating activities before financial items and taxes
decreased to EUR -5.5 million (22.1).
  · Free cash flow decreased to EUR -20.1 million (12.9).
  · Comparable earnings per share were EUR 0.19 (0.27). Earnings per share (EPS)
were EUR 0.03 (0.25).

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.

Guidance for 2024 (unchanged):

Fiskars Corporation expects comparable EBIT to be slightly above the 2023 level
(2023: EUR 110.3 million).

Assumptions behind the guidance:

The operating environment is expected to remain challenging and impact demand in
2024. Visibility toward the end of the year remains limited, as uncertainties in
the global economy persist.

The savings from the completed organizational changes are expected to support
EBIT, although they will be partially offset by wage inflation.

As a result of the Georg Jensen acquisition, the Group's EBIT generation will
shift even more toward the end of the year, highlighting the importance of the
second half, and especially of 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:
“Our first quarter performance was solid, considering the challenging operating
environment. Comparable net sales decreased by 6%, while reported net sales,
which include Georg Jensen, increased by 3%. We now have two quarters behind us
with Georg Jensen as part of Fiskars Group. The integration is proceeding well
thanks to our motivated teams, detailed plans, and the strong cultural fit
between Georg Jensen and Fiskars Group.

Savings from last year's organizational changes supported comparable EBIT, but
due to lower volumes, it decreased to EUR 25 million. In Business Area Fiskars,
the volume drop was almost fully offset by a higher gross margin, resulting in a
rather stable comparable EBIT. In Business Area Vita, adjusting production
capacity to declined volumes is challenging, as glass-making is a scale-driven
process industry, hence the lower volumes have burdened Vita's profitability
more. We are taking action to tackle this and restore the competitiveness of our
glass factories.

Free cash flow declined in the first quarter, following its historical quarterly
pattern.

We remain focused on our Growth Strategy and its four transformation levers:
commercial excellence; direct-to-consumer (DTC); the U.S., and China. During the
first quarter, our gross margin, which is our key performance indicator for
commercial excellence, increased by 185 basis points. Comparable DTC sales were
stable, with continued good growth in e-commerce offset by a decline in the
Group's own retail network mainly due to store closures. DTC amounted to 24% of
the Group's net sales. In the U.S., comparable net sales decreased by 5%, as
retailers' cautiousness in taking inventories continued to affect demand. In
China, comparable net sales increased by 15%.

In March, we took an important step forward in sustainability by setting a long
-term net-zero emissions target. Our plan is to reduce greenhouse gas emissions
in our operations and the whole value chain to net zero by 2049. Our climate
work and transparent reporting was externally recognized in the first quarter,
when we achieved the Leadership level in CDP's assessment. CDP also recognized
Fiskars Group as a 2023 Supplier Engagement leader for our efforts to measure
and reduce climate risk within the supply chain.

Another external recognition we were honored to receive was the prestigious Red
Dot “Best of the Best” product design distinction, which was awarded to two
Fiskars brand products. This marked the 16th consecutive year for Fiskars
winning a Red Dot award, and the 5th consecutive year of winning the “Best of
the Best” Product Design Award.  Pioneering design is at the core of Fiskars
Group and its legacy—we create lasting products and dare to innovate for the
future. In 2024, we are paying homage to some of the most iconic Fiskars
products with special editions, in honor of the 375th anniversary year.

With one quarter of the year now behind us, we reiterate our guidance for 2024
and expect comparable EBIT to be slightly above last year's EUR 110 million. The
operating environment is expected to remain challenging. Visibility toward the
end of the year is still limited, as uncertainties in the global economy
persist. As a result of the Georg Jensen acquisition, our EBIT generation shifts
even more toward the end of the year, highlighting the importance of the second
half, and especially of the fourth quarter. During this period, the development
of Business Area Vita's volumes will play a significant role.

We continue to strengthen our foundation. I am confident that we are well
positioned as a result of all the transformative actions we are taking, and this
will be more visible once market conditions improve.”

Group key figures

[][][][]
EUR million (unless otherwise       Q1 2024  Q1 2023  Change     2023
noted)
Net sales                             282.9    274.9    2.9%  1,129.8
Comparable net sales[1)]              255.5    271.2   -5.8%  1,071.5
EBIT                                    6.4     28.9  -78.0%     98.9
Items affecting comparability in       18.7      2.3             11.4
EBIT[2)]
Comparable EBIT[3)]                    25.1     31.2  -19.7%    110.3
Comparable EBIT margin                 8.9%    11.4%             9.8%
EBITDA                                 26.4     44.0  -40.0%    164.9
Comparable EBITDA[4)]                  44.9     46.0   -2.3%    175.8
Profit before taxes                     3.6     26.3  -86.4%     79.7
Profit for the period                   2.4     20.5  -88.1%     70.0
Earnings per share, EUR                0.03     0.25  -88.2%     0.86
Comparable earnings per share, EUR     0.19     0.27  -31.6%     0.99
Cash earnings per share (CEPS),       -0.17     0.25             2.68
EUR
Equity per share, EUR                  9.34     9.56   -2.3%    10.15
Cash flow from operating               -5.5     22.1            247.5
activities before financial items
and taxes
Free cash flow                        -20.1     12.9            184.9
Free cash flow/comparable net        208.1%   -19.1%           231.0%
profit
(LTM), %
Net debt                              510.0    369.8   37.9%    446.7
Net debt/comparable EBITDA (LTM),      2.92     1.95   49.6%     2.54
ratio
Equity ratio, %                         45%      49%              47%
Net gearing, %                          67%      48%              54%
Capital expenditure                    10.8     10.1    7.1%     50.8
Personnel (FTE), average              6,535    6,026    8.5%    6,133

1) Comparable net sales exclude the impact of exchange rates, acquisitions and
divestments.
2) In Q1 2024, items affecting comparability were mainly related to the
acquisition of Georg Jensen and 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 first quarter results will be held on April 25, 2024 at 1:00
p.m. (EEST). It will be held in English and can be followed at
https://fiskars.videosync.fi/q1-2024

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:
Essi Lipponen, Director, Investor Relations, tel. +358 40 829 1192

Fiskars Group in brief
Fiskars Group (FSKRS, Nasdaq Helsinki) is the global home of design-driven
brands for indoor and outdoor living. Our brands include Fiskars, Georg Jensen,
Gerber, Iittala, Moomin Arabia, Royal Copenhagen, Waterford, and Wedgwood. Our
brands are present in more than 100 countries and we have close to 450 own
stores. We have approximately 7,000 employees and our global net sales in 2023
were EUR 1.1 billion.

We are driven by our common purpose: Pioneering design to make the everyday
extraordinary. In 2024, we are celebrating our 375th anniversary. Since 1649, we
have designed products of timeless, purposeful, and functional beauty, while
driving innovation and sustainable growth.

Read more: fiskarsgroup.com

Attachments:

04257711.pdf