This summary of the Fiskars Corporation’s second quarter of 2017 and half year financial report January–June is also available at http://fiskarsgroup.com/investors/reports-presentations/interim-reports and on the company website at www.fiskarsgroup.com.
Second quarter 2017 in brief:
Net sales decreased by 1.2% to EUR 290.0 million (Q2 2016: 293.5)
Comparable net sales increased by 0.6%
Comparable EBITA increased by 7% to EUR 22.4 million (20.9)
EBITA increased to EUR 21.3 million (18.4)
Cash flow from operating activities before financial items and taxes amounted to EUR 48.6 million (39.1)
Earnings per share (EPS) were EUR 0.31 (-0.26). Operative earnings per share totalled EUR 0.14 (0.08)
January–June 2017 in brief:
Net sales increased by 1.1% to EUR 596.1 million (Q1–Q2 2016: 589.7)
Comparable net sales increased by 2.7%
Comparable EBITA increased by 18% to EUR 54.4 million (45.9)
EBITA increased to EUR 52.2 million (45.2)
Cash flow from operating activities before financial items and taxes amounted to EUR 2.2 million (2.9)
Earnings per share (EPS) were EUR 1.39 (-0.25). Operative earnings per share totalled EUR 0.34 (0.19)
Outlook for 2017 unchanged:
Fiskars expects the Group’s net sales, excluding the net sales of businesses divested in 2016 (2016: EUR 1,180 million) and comparable EBITA (2016: EUR 107 million) to increase from the previous year.
Interim President and CEO, Fiskars, Teemu Kangas-Kärki:
”Fiskars Group had a good first half of 2017, with comparable net sales and comparable EBITA growing clearly. Despite the tough market conditions in some of our key markets, we have grown our business and taken market share with several of our brands, including Fiskars, Iittala, Royal Copenhagen, Royal Doulton, Rörstrand, and Arabia. After the strong first quarter, we continued to grow our comparable net sales and comparable EBITA during the second quarter of 2017. While the second quarter got off to a slow start due to weather conditions and the challenging trade environment, Fiskars Group made good progress during the quarter.
The growth of comparable net sales was excellent in Europe and Asia-Pacific during the first half of the year. I was particularly pleased to see that the strong performance of the Scandinavian Living business continued and the business demonstrated robust growth during the second quarter, supported by the Finland 100 anniversary products by Arabia and Iittala brands as well as the Royal Copenhagen and Rörstrand brands. Despite the tough weather conditions, the comparable net sales grew in the Functional business during the first half of the year.
The comparable net sales grew in the Functional Americas business during the first half of the year, whereas the comparable net sales in the entire Americas region was adversely impacted by two factors. The premium sales channels in the Living business continued to face headwind in the US and the market for outdoor knives has not recovered in the region. We do not expect the conditions in the premium sales channels for the living products in the US to improve in the short term. Therefore, we continued to invest in brand development in the English & Crystal Living business, supporting future growth opportunities. Furthermore, we are focused on developing our omnichannel approach across the businesses to succeed in the changing business environment.
Fiskars operates globally with a considerable part of the business in the US. The US dollar has weakened during the first half of the year, and should the weakening continue, the translation exposure may have a material impact on our reported financial figures. We continue to focus on driving profitable growth and strengthen our capabilities to progress in all the markets where we operate. We are determined to grow our core businesses, build iconic lifestyle brands, and create high quality consumer experiences – by making the everyday extraordinary.”