Fiskars - Interim report (Q1 and Q3)

Fiskars Q1 2016: Increased net sales and operating profit in a mixed market environment

Fiskars Corporation
Interim Report
May 4, 2016 at 8.30 a.m. EET

Fiskars Q1 2016: Increased net sales and operating profit in a mixed market
environment 

This release is a summary of the Fiskars Corporation’s first quarter of 2016
and Interim Report January-March 2016 published today. The complete
January–March 2016 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. 



First quarter 2016 in brief:

  -- Net sales increased by 29% to EUR 296.2 million (Q1 2015: 230.1)
  -- Net sales increased by 1.5% on a comparable basis1) 
  -- Operating profit increased to EUR 23.7 million (15.7)
  -- Adjusted operating profit2) increased by 29% to EUR 21.9 million (17.0) 
  -- Earnings per share (EPS) were EUR 0.01 (0.95). Operative earnings per
     share3) amounted to EUR 0.10 (0.14).
  -- Outlook for 2016 unchanged: Fiskars expects the Group’s 2016 net sales and
     adjusted operating profit to increase from the previous year



1) Using comparable exchange rates, excluding the acquired English & Crystal
Living (WWRD) business and divested boats and container gardening businesses 
2)Adjustments in Q1 2016 include a gain from the sale of the boats business and
the container gardening business in the Americas, and net costs related to the
Supply Chain 2017 program and integration activities. In Q1 2015, costs related
to EMEA restructuring 
3) Operative earnings per share do not include changes in the fair value of the
investment portfolio and dividends received 



President and CEO, Fiskars, Kari Kauniskangas:

“Fiskars achieved a good start to the year, as both net sales and operating
profit grew. Comparable net sales also increased despite the challenging market
conditions in some of our key markets, namely Finland and Japan. We
demonstrated strong development in net sales and profit, driven by the
Scandinavian Living business in Europe and Functional business across all
regions. 

I was particularly pleased with our progress in the Scandinavian Living
business in Europe, driven by the Royal Copenhagen and Rörstrand brands. In
addition, Iittala launched a unique collaboration collection, Iittala X Issey
Miyake, with the aim of further increasing brand awareness in major cities
around the world. The launch was implemented with a true omni-channel approach
and attracted a significant amount of attention among current and new consumers
across the globe. 

Led by the Fiskars brand, the Functional business performed very well in the
Americas, with increased operating profit year-on-year. Net sales in the
watering business were down due to exits from several unfavorable sales
agreements. The turnaround of the watering business is progressing according to
plan, and we are leveraging our expertise in the garden category. 

As expected, English & Crystal Living net sales decreased from the comparison
period. We are progressing with the integration of the business, where we will
benefit from our successful integration track record with Iittala and Royal
Copenhagen. Building on the iconic brands – Waterford, Wedgwood, Royal Albert
and Royal Doulton – as well as our key Scandinavian Living brands – Iittala,
Royal Copenhagen and Rörstrand – we will focus on creating a world-leading
luxury and premium Living business delivering sustained profitable growth. 

During the first quarter, we completed the divestments of the boats and the
U.S. container gardening businesses, allowing us to better focus on our
world-leading consumer brands. 

We expect the business environment to remain challenging especially in Asia and
some European countries. Our trade customers continue to face structural
changes across the globe. We are meeting these challenges head-on and will
focus on leveraging the home and garden trend currently gaining momentum in
several markets, targeting profitable growth in an omni-channel environment,
working together with our trade customers and building consistent consumer
experiences at every touchpoint.” 



Group key figures

EUR million                                    Q1 2016  Q1 2015  Change     2015
--------------------------------------------------------------------------------
Net sales                                        296.2    230.1     29%  1,107.1
Operating profit (EBIT)                           23.7     15.7     51%     46.5
Adjustments to operating profit1)                 -1.8      1.3             18.6
Adjusted operating profit                         21.9     17.0     29%     65.1
Adjusted EBITA                                    25.0     18.9     32%     75.7
Net change in the fair value of investment       -25.7     42.2             56.1
 portfolio                                                                      
Profit before taxes                                3.2     97.6    -97%    125.5
Profit for the period                              1.5     78.0    -98%     86.4
Operative earnings/share, EUR2)                   0.10     0.14    -26%     0.16
Earnings/share, EUR                               0.01     0.95    -99%     1.04
Equity per share, EUR                            13.83    14.46     -4%    14.54
Cash flow from operating activities before       -36.2    -51.9    -30%     50.2
 financial items and taxes                                                      
Equity ratio, %                                    64%      71%              65%
Net gearing, %                                     27%      18%              21%
Capital expenditure                                8.2      5.7     43%     32.4
Personnel (FTE), average                         8,092    4,617     75%    6,303
--------------------------------------------------------------------------------

1) In Q1 2016, a gain from the sale of the boats business and the container
gardening business in the Americas, and net costs related to the Supply Chain
2017 program and integration activities. In Q1 2015, costs related to EMEA
restructuring 
2) Excluding net change in the fair value of the investment portfolio and
dividends received. The comparison period has been restated to also exclude the
exchange rate gains related to the investment portfolio 



Analysts and media conference:
An analysts and media conference will be held at 10 a.m. on May 4, 2016, at the
company’s headquarters, Fiskars Campus, Hämeentie 135 A, Helsinki. Presentation
material will be available after the conference 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 9,000 people in 30
countries. Fiskars is listed on Nasdaq Helsinki. www.fiskarsgroup.com

Attachments:

Fiskars Q1 2016_eng.pdf