FISKARS - Net sales decreased by 1.6% to EUR 1,185.5M €
Fourth quarter 2017 in brief:
- Net sales decreased by 4.4% to EUR 319.2 million (Q4 2016: 334.1)
- Comparable net sales1) decreased by 0.2%
- Comparable2) EBITA decreased by 2% to EUR 35.4 million (36.3)
- EBITA increased to EUR 30.6 million (28.1)
- Cash flow from operating activities before financial items and taxes amounted to EUR 103.5 million (77.5)
- Earnings per share (EPS) were EUR -0.56 (0.51). Operative earnings per share3) totaled EUR 0.21 (0.23)
January–December 2017 in brief:
- Net sales decreased by 1.6% to EUR 1,185.5 million (2016: 1,204.6)
- Comparable net sales1) increased by 1.5%
- Comparable2) EBITA increased by 11% to EUR 119.0 million (107.1)
- EBITA increased to EUR 113.2 million (96.7)
- Cash flow from operating activities before financial items and taxes amounted to EUR 130.5 million (120.7)
- Earnings per share (EPS) were EUR 2.04 (0.78). Operative earnings per share3) totaled EUR 0.81 (0.56)
- The Board of Directors proposes a dividend of EUR 0.72 per share, to be paid in two installments of EUR 0.36 each, in March and September 2018
Outlook for 2018:
In 2018, Fiskars expects the Group’s comparable net sales1) and comparable2) EBITA to increase from 2017.
“President and CEO, Fiskars, Jaana Tuominen:
“The year 2017 was marked by many changes at Fiskars. We took a step forward towards fulfilling our global ambition and shifted from a region-based organization to form two global Strategic Business Units, Living and Functional, and a unified supply chain. We continued to improve our competitiveness with several initiatives, and the outcome of these initiatives supported our profitability already in 2017. Overall, I was pleased with our financial performance, as Fiskars Group increased its net sales, excluding net sales of businesses divested in 2016, and comparable EBITA during 2017. We made progress during the year, however we also experienced challenges in some markets.
Comparable net sales in the Living segment decreased year-on-year, impacted primarily by the negative development in the U.S. and Australia. The Scandinavian Living business consistently delivered during the year and improved its net sales and comparable EBITA also during the fourth quarter. The Scandinavian Living business exceeded our expectations and closed the year with a strong performance by the Iittala, Royal Copenhagen and Arabia brands. The English & Crystal Living business faced challenges throughout the year, especially as the transformation of the retail sector has continued mainly in the U.S. In addition, we have discontinued collaboration with select customers in the U.S., which has negatively affected our topline, however we expect this to positively contribute to our gross margin and brand value. With Ulla Lettijeff, the newly appointed President of SBU Living, and her team, we will continue to revitalize the positioning of our English & Crystal Living brands, including Waterford, Wedgwood, Royal Albert and Royal Doulton, while the improvement of operational excellence remains a high priority in 2018.
The Functional business made solid progress during the year, increasing the comparable net sales and comparable EBITA also during the fourth quarter. The performance in the fourth quarter was supported by increased sales to our existing customers as well as the scissors and hardware categories. Net sales decreased in the Outdoor business, primarily due to the challenges in the knife category and sporting goods sector.
We are gaining further traction from our transformation programs, and today, we operate more efficiently than before. We have focused on removing internal complexities, aligning our ways of working and consistently reducing the number of stock keeping units (SKUs), enabling us to better focus on our core offering and increasing the value of our brands. This work will continue in the future.
We have proceeded on our strategic journey, and are progressing towards our long-term financial targets having improved the EBITA margin in 2017. In 2018, we expect to continue the profitable growth and increase our comparable net sales and comparable EBITA from 2017.
Supported by the newly announced Fiskars Group Leadership Team, I look forward to driving Fiskars forward and creating value for our stakeholders. I’m proud of the Fiskars team, our passion for the brands and our commitment to meeting and exceeding consumers’ expectations – making the everyday extraordinary.”