Fiskars - Interim report (Q1 and Q3)

Fiskars third quarter 2015: Strong sales growth and solid underlying business performance, updated outlook for the full-year 2015

Fiskars Corporation
Interim Report
October 28, 2015 at 8.30 a.m. EET

Fiskars third quarter 2015: Strong sales growth and solid underlying business
performance, updated outlook for the full-year 2015 

This release is a summary of the Fiskars Corporation's third quarter of 2015
and Interim Report January-September 2015 published today. The complete
January-September 2015 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 our interim reports only, but should review the complete interim
reports with tables. 

Quarterly highlights

  -- Net sales in Q3 2015 increased by 62% to EUR 288.8 million (Q3 2014:
     178.4).
  -- Using comparable exchange rates and excluding the acquired watering and
     WWRD businesses, net sales increased by 4%.
  -- Operating profit decreased in Q3 2015 to EUR -1.6 million (13.7), mainly
     due to non-recurring items.
  -- Operating profit excluding non-recurring items decreased in Q3 2015 by 38%
     to EUR 10.4 million (16.8). WWRD had a net negative impact of EUR 7.8
     million, mainly due to purchase price allocation charges and other WWRD
     acquisition related costs, which impact the result in 2015 only.
  -- Operative earnings per share were EUR -0.18 (0.27). Reported earnings per
     share (EPS), which includes changes in the fair value of the investment
     portfolio, amounted to EUR -0.83 (0.27).
  -- Fiskars completed the acquisition of WWRD on July 1, 2015 and extended its
     portfolio with iconic luxury home and lifestyle brands.
  -- Outlook for 2015 updated: full-year 2015 net sales are expected to increase
     from 2014 levels and operating profit excluding non-recurring items to be
     above 2014 levels. Previously, full-year net sales were expected to
     increase from 2014 levels and operating profit excluding non-recurring
     items to be at 2014 levels.

Fiskars President and CEO, Kari Kauniskangas:

“Fiskars performed well during the third quarter, with both the Europe &
Asia-Pacific and Americas segments demonstrating solid growth. Despite the
challenging economic climate in Europe and Asia, particularly in Finland and
Japan, Fiskars demonstrated continued growth in net sales in the regions,
supported by the recently acquired WWRD business, which performed according to
our expectations. Had WWRD been consolidated from January 1, 2015, the
consolidated income statement would show pro forma revenue of EUR 929 million
during the first nine months of the year. 

Even if our reported results declined due to one-time items, I'm very pleased
with our operative performance, given the tough market climate in some
countries. As a result of the solid quarter, we updated our full-year outlook
for 2015. We increased our expectations for the operating profit excluding
non-recurring items and now expect it to be above 2014 levels. 

The results were primarily driven by the strong performance of the Living
business in Europe and the Functional business across all regions. Our business
also grew in the Asia-Pacific region despite the difficult environment in
Japan. As previously communicated, our operating profit was impacted by the
amortization of acquisition related items such as inventory revaluation and
other transaction costs. 

We remain focused on improving our competitiveness and continuously developing
the company, while keeping our sales engine running at full speed. The
integration planning with WWRD has started well and there are several areas
where we have confirmed opportunities and identified new possibilities for
value creation. We will focus on developing the brands and embracing their
unique strengths, while pursuing common success factors, such as company
culture, in-store excellence, omni-channel presence as well as common platforms
and processes.” 

Group key figures

EUR million                  Q3      Q3  Change    Q1-Q3    Q1-Q3  Change   2014
                           2015    2014             2015     2014               
--------------------------------------------------------------------------------
Net sales                 288.8   178.4     62%    772.2    563.5     37%  767.5
--------------------------------------------------------------------------------
Operating profit (EBIT)    -1.6    13.7             33.5     40.4    -17%   42.7
--------------------------------------------------------------------------------
Non-recurring items1)     -12.0    -3.1    291%    -14.8     -8.5     73%  -17.0
--------------------------------------------------------------------------------
EBIT excl.                 10.4    16.8    -38%     48.3     48.9     -1%   59.6
 non-recurring items                                                            
--------------------------------------------------------------------------------
Share of profit from               11.3                      30.0           30.0
 associated company                                                             
--------------------------------------------------------------------------------
Net change in the fair    -67.2                    -16.6                    27.9
 value of investment                                                            
 portfolio                                                                      
--------------------------------------------------------------------------------
Profit before taxes2)     -76.9    26.2             42.4     70.1    -40%  768.7
--------------------------------------------------------------------------------
Profit for the period2)   -67.7    21.8             24.1     55.1    -56%  773.3
--------------------------------------------------------------------------------
Operative                 -0.18    0.27             0.31     0.67    -54%   0.76
 earnings/share, EUR3)                                                          
--------------------------------------------------------------------------------
Earnings/share, EUR4)     -0.83    0.27             0.28     0.67    -58%   9.44
--------------------------------------------------------------------------------
Equity per share, EUR                              13.74     7.84     75%  14.06
--------------------------------------------------------------------------------
Cash flow from             -0.1    26.1            -14.0     39.1           87.0
 operating activities5)                                                         
--------------------------------------------------------------------------------
Equity ratio, %                                      63%      60%            73%
--------------------------------------------------------------------------------
Net gearing, %                                       28%      30%            11%
--------------------------------------------------------------------------------
Capital expenditure        12.6    15.7    -19%     24.5     27.7    -11%   35.0
--------------------------------------------------------------------------------
Personnel (FTE),          7,784   4,199     85%    5,626    4,177     35%  4,243
 average                                                                        
--------------------------------------------------------------------------------

1) In Q3 2015, mainly goodwill impairment related to the planned
rationalization of a non-core product range in Americas and items related to
the Supply Chain 2017 program. In 2014, the EMEA 2015 restructuring program
costs, write-downs and bargain purchase gain (badwill) related to the
acquisition of the watering business. 
2)FY 2014 includes a non-recurring gain from the sale and revaluation of
Wärtsilä shares of EUR 676.0 million on October 9, 2014. 
3)Excluding net change in the fair value of the investment portfolio and
dividends received. In FY 2014, excluding also the non-recurring gain from the
sale and revaluation of Wärtsilä shares on October 9, 2014. 
4)FY 2014 includes EUR 8.25 from the sale and revaluation of Wärtsilä shares on
October 9, 2014. 
5) Including Wärtsilä dividend of EUR 26.9 million in Q1 2014.



Analysts and media conference:
An analysts and media conference will be held at 10 a.m. on October 28, 2015,
at the company's headquarters, Fiskars Campus, Hämeentie 135 A, Helsinki.
Presentation material will be available at www.fiskarsgroup.com. 

FISKARS CORPORATION

Kari Kauniskangas
President and CEO

Further information:

  -- President and CEO Kari Kauniskangas, tel. +358 204 39 5500
  -- COO and CFO Teemu Kangas-Kärki, tel. +358 204 39 5703
  -- Corporate Communications, tel. +358 204 39 5031, communications@fiskars.com


Fiskars - celebrating centuries of pride, passion and design. Every day.
Established in 1649 as an ironworks in a small Finnish village, Fiskars has
grown to be a leading consumer goods company with globally recognized brands
including Fiskars, Iittala, Gerber, Wedgwood and Waterford. With iconic
products, strong brands and global ambitions, Fiskars' mission is to enrich
people's lives in home, garden and outdoor. Fiskars' products are available in
more than 100 countries and the company employs around 8,600 people in 30
countries. Fiskars is listed on Nasdaq Helsinki. www.fiskarsgroup.com

Attachments:

Fiskars Q3 2015 ENG.pdf