Fiskars Oyj Abp · OMXHEX:FSKRS
Fiskars Oyj Abp — Q1 2023 Earnings Presentation
30 slides from Fiskars Oyj Abp's earnings presentation, Apr 27, 2023
Slide 1: Interim Report Q1 2023
Interim Report Q1 2023 FOCUS ON CASH FLOW AND PROFIT PROTECTION DELIVERED JANU ARY – MARC H 2023 RESULTS IN A CHALLENGING OPERATING ENVIRONMENT
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although Fiskars Group believes that the expectations reflected in such forward-looking statements are reasonable, no as
Slide 3: Highlights of Q1 2023
Highlights of Q1 2023 FO C U S O N S A LE S D E C LI N E D D T C O U T G R EW 2 0 2 3 G U I D AN CE C A S H FLO W D U E T O LO W O TH E R C H A N NE LS R E I TE R A TED : A N D PR O FI T C O N S U M ER – S T R A T E GI C PR O T E C T I ON C O N FI DEN CE A N D FO C U S PA Y S O FF C O M PA RABLE D E
Slide 4: Q1 2023 Group key figures
Q1 2023 Group key figures GROSS MARGIN % NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) -17.4% -13.4%* AND EBIT MARGIN (%) 46.4 Q1/2022: 45.6, like-for-like 46.6 333 60 20 15.4% 51.8 302 15.6% 15 275 50 46.6 11.4% FREE CASH FLOW 269 256 8.5% 10 EUR MILLION 6.0% 12.9 40 5 31.2 30 0 22.7 Q1/2022
Slide 5: Vita Q1: Sales decreased in the retailer channel, own e-commerce continued to develop positively
Vita Q1: Sales decreased in the retailer channel, own e-commerce continued to develop positively NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) AND COMPARABLE EBIT MARGIN, % -10.8% 140 -8.9%* 12 15 • E-commerce developed 10.6 10.7 positively in several key 121 9.8% 7.8 120 110 8.8% 7.2% 10 mar
Slide 6: Terra Q1: Clearly lower shipments at the start of the gardening season
Terra Q1: Clearly lower shipments at the start of the gardening season NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) AND -25.2% COMPARABLE EBIT MARGIN, % -19.2%* 180 173 40 35.5 25 • Clearly lower shipments at the 157 19.9% 20.5% start of the gardening season 160 17.6% 20 16.3% 31.2 due to in
Slide 7: Crea Q1: Rather stable development supported by timing of shipments in the U.S.
Crea Q1: Rather stable development supported by timing of shipments in the U.S. NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) AND -2.1% COMPARABLE EBIT MARGIN, % -2.8%* 40 10 22.5% 25 • In the U.S., the Creating 38 37 21.2% 36 21.0% category was supported by 35 20 32 16.2% 8.1 8.1 7.8 timing
Slide 8: Our focus is firmly on our Growth Strategy
Our focus is firmly on our Growth Strategy WE FOCUS ON WINNING: LOGIC Brands Channels Countries Commercial excellence Direct to consumer TRANSFORMATION LEVERS U.S. China INNOVATION ENABLERS PEOPLE DIGITAL SUSTAINABILITY & DESIGN APRIL 27, 2023
Slide 9: 3/4 of transformation levers delivering
3/4 of transformation levers delivering Q1 2023 Commercial • Gross margin +90 bps (-20 bps organically) driven by successful actions to excellence mitigate cost inflation Direct to • DTC: 4% growth; and 20% of net sales consumer • E-commerce +12%; physical retail +1% • Net sales -21% U.S. • Decline
Slide 10: We are making good progress in our ESG targets
We are making good progress in our ESG targets Environmental Social DEI index Q1 2023 Target to be set Q1 2023 Q1 2023 Q1 2023 Q1 2023 7.2 0 during 2023 9% -47% -15% 30% Base year 2021 50% Base year 2017 -60% Base year 2018 -30% Target set 2020 60% in 2030 in 2030 in 2030 in 2024 Net sales from Emis
Slide 11: Other highlights of the first quarter
Other highlights of the first quarter Fiskars Group’s first Red Dot awards for Fiskars All Aamir Shaukat appointed as employee share savings plan Steel cookware range and the Chief Supply Chain Officer “MyFiskars” launched Fiskars 5th generation axes APRIL 27, 2023
Slide 12: Organizational changes are progressing
Organizational changes are progressing What Why Expected outcome Progress during Q1: • Organizational • To drive continued • Reduction of ~100 • Implementation of changes especially in transformation of the roles globally changes started in the the business areas company BAs + in Sales to reflect (B
Slide 13: Guidance for 2023
Guidence for 2023 Assumptions behind the guidance (unchanged) - expected continued + savings from the volatility of the market targeted organizational environment and weaker changes from H2 onwards Fiskars expects comparable EBIT demand especially in H1 and prudent cost management to be slightly bel
Slide 14: Q1 2023 Financials
Q1 2023 Financials APRIL 27, 2023
Slide 15: Q1 Net sales decline driven by the U.S. and Terra
Q1 Net sales decline driven by the U.S. and Terra Q1 2023 NET SALES BRIDGE BY BUSINESS AREAS, Q1 2023 NET SALES BRIDGE BY GEOGRAPHICAL EUR MILLION AREAS, EUR MILLION -17.4% -13.4%* -17.4% -13.4%* 340 340 332.6 -15.3 332.6 -15.3 330 330 320 +0.2 317.5 -10.5 320 +0.2 317.5 -14.6 310 -30.8 310 -24.9 30
Slide 16: Q1 Comparable EBIT declined due to volumes, like-for-like gross margin stable
Q1 Comparable EBIT declined due to volumes, like-for-like gross margin stable Q1 2023 EBIT BRIDGE BY BUSINESS AREAS, Q1 2023 EBIT BRIDGE BY COMPONENTS, EUR MILLION EUR MILLION -20.5 -18.9 -20.5 -18.9 55 55 51.8 -1.9 51.8 -1.9 +0.3 50.2 -2.5 +0.3 50.2 50 50 -11.3 45 45 40 40 -0.4 -4.7 35 35 31.2 31.2
Slide 17: Q1 Cash flow improved significantly driven by actions taken to decrease inventories
Q1 Cash flow improved significantly driven by actions taken to decrease inventories EUR MILLION EUR MILLION 99 100 250 75 200 75 68 49 150 50 +83 36 39 36 34 100 24 25 13 50 0 0 0 -3 -3 -50 -25 -100 -50 -44 -49 -150 -75 -64 -70 -200 -100 -250 Q1-22 Q1-23 Q1-19 Q2-19 Q2-22 Q3-19 Q4-19 Q3-22 Q4-22 Q1-
Slide 18: Trade working capital reduced by EUR 10 million vs. year-end
Trade working capital reduced by EUR 10 million vs. year-end driven by Terra inventories EUR MILLION % 40% 600 37% 38% 40 550 34% 34% 34% 514 33% 32% 33% 35 500 31% 31% 466 29% 29% 30% 456 450 29% 28% 426 439 30 26% 400 367 358 361 366 373 373 346 336 349 25 350 313 310 300 291 20 250 15 200 150 10
Slide 19: Net debt increased, but remained well below the 2.5X threshold
Net debt increased, but remained still well below the 2.5X threshold NET DEBT DEVELOPMENT BALANCE SHEET KPIS EUR MILLION 400 3.5 370 350 344 323 332 325 3.0 318 300 279 290 102 134 107 2.5 101 262 115 117 250 107 222 104 215 2.0 207 200 111 180 95 105 1.5 144 146 145 107 150 137 95 242 236 1.0 218 2
Slide 20: Challenging operating environment is reflected in progress towards financial targets
Challenging operating environment is reflected in the progress towards our financial targets FINANCIAL TARGETS TRACKING FY FY LTM MARCH KPI TARGET 2021 2022 2023 NET SALES Organic, FX neutral Mid-Single-Digit growth 14.2% 1.7% -4.7% EBIT Mid-teen EBIT margin (excl. IAC) by end of 2025 12.3% z 12.1%
Slide 21: Highlights of Q1 2023
Highlights of Q1 2023 FO C U S O N S A LE S D E C LI N E D D T C O U T G R EW 2 0 2 3 G U I D AN CE C A S H FLO W D U E T O LO W O TH E R C H A N NE LS R E I TE R A TED : A N D PR O FI T C O N S U M ER – S T R A T E GI C PR O T E C T I ON C O N FI DEN CE A N D FO C U S PA Y S O FF C O M PA RABLE D E
Slide 22: Thank you!
Fiskars Gro up 202 3 Thank you! APRIL 27, 2023
Slide 23: Appendix
FISKARS ss. GROUP 0 ° Appendix APRIL 27, 2023
Slide 24: Consolidated Q1 2023 income statement
Consolidated Q1 2023 income statement Q1 P&L KEY FIGURES, EUR MILLION Key Takeaways Gross margin +90bps • Organic GM -20bps Operational expenses down EUR 3.4m • Sales and marketing down 3.1m • SG&A at last year’s level Comparable Q1 EBIT down EUR 20.6m APRIL 27, 2023
Slide 25: Q1 2023 Cash flow
Q1 2023 Cash flow Key Takeaways Q1 Free Cash Flow vs. LY (EURm) Q1 Change in Cash vs. LY (EURm) • Inventories down EUR Q1-23 vs. LY Q1-23 vs. LY 18.4m mainly driven by EBITDA 45.1 - 10.1 Cash Balance period opening 115.8 + 84.2 Terra Change in provisions -10.0 - 2.9 Translation difference -0.3 - 0.8
Slide 26: Balance sheet
Balance sheet Capital Employed (EURm) Funding (EURm) Mar-23 Dec-22 Mar-22 Mar-23 Dec-22 Mar-22 GW and other intangible 499.9 499.8 489.9 Equity 789.1 835.6 787.4 PPE and biological assets 193.7 192.8 190.3 Interest-bearing debt 312.4 325.6 148.5 Capitalised leases (ROU) 127.9 110.6 102.0 Lease liabi
Slide 27: Fiskars Group's quarterly development – last 3 years
Fiskars Group’s quarterly development – last 3 years NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) AND EBIT MARGIN, % 60 20 -17.4% 51.8 18 -13.4%* 353 50 333 46.6 16 313 319 302 307 292 293 304 41.4 280 14 267 275 40 256 35.7 36.0 36.3 34.1 33.2 12 32.2 29.7 31.2 30 10 21.9 8 20 15.4 6 4 10 2
Slide 28: BA Vita's quarterly development – last 3 years
BA Vita’s quarterly development – last 3 years NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) AND EBIT MARGIN, % -10.8% -8.9%* 200 187 40 35.9 25 171 176 31.9 20 30 24.9 24.5 24.6 15 150 140 134 116 121 127 20 14.4 10 111 108 108 12.4 10.6 12.2 10.7 5 100 94 10 7.8 81 0 0 -5 50 -10 -10 -6.1 -1
Slide 29: BA Terra's quarterly development – last 3 years
BA Terra’s quarterly development – last 3 years NET SALES, EUR MILLION COMPARABLE EBIT (EUR MILLION) AND EBIT MARGIN, % -25.2% -19.2%* 180 173 40 25 35.5 160 154 157 149 31.2 20 139 30 140 129 130 26.1 118 22.8 15 120 113 111 108 20 18.8 17.4 98 10 100 87 15.0 12.4 80 5 10 6.8 6.2 5.2 60 0 40 0 -5 2
Slide 30: BA Crea's quarterly development – last 3 years
BA Crea’s quarterly development – last 3 years NET SALES, EUR MILLION -2.1% COMPARABLE EBIT (EUR MILLION) AND EBIT MARGIN, % -2.8%* 55 52 50 15 35 47 13.9 45 46 45 44 42 43 42 40 30 11.6 11.3 11.4 11.7 40 38 37 36 35 10.0 25 32 10 30 8.3 8.1 8.1 20 7.8 25 5.7 15 20 5.2 5 4.5 15 10 10 5 5 0 0 0 Q1 Q2