Fiskars Oyj Abp · OMXHEX:FSKRS
Fiskars Oyj Abp — Q1 2024 Earnings Presentation
29 slides from Fiskars Oyj Abp's earnings presentation, Apr 25, 2024
Slide 1: Interim Report Q1 2024
Interim Report Q1 2024 SOLID PERFORMANCE IN A CHALLENGING JANU ARY -MAR C H 2024 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
Highlights SOLID TRANSFORMATION INVESTMENTS GUIDANCE FOR PERFORMANCE CONTINUED AND CHANGES 2024 INTACT: IN A CHALLENGING TO DELIVER: PLANNED IN GLASS C O M P A R A BL E E B I T MARKET: PRODUCTION TO GM% EXPECTED TO BE BETTER CATER FOR C O M P A R A BL E N E T SLIGHTLY ABOVE E-COM PREMIUM AND SALES -
Slide 4: Q1 2024 Group key figures
Q1 2024 Group key figures GROSS MARGIN % 48.3 Q1/2023: 46.4 REPORTED NET SALES, EU Rm COMPARABLE EBIT (EUR m) AND COMPARABLE EBIT MARGIN, % FREE CASH FLOW EURm -20.1 EURm % +2.9% *-5.8% 60 20 350 333 46.6 51.8 Q1/2023: 12.9 302 50 15.6% 300 283 15.4% 275 256 15 250 40 31.2 COMPARABLE EPS 11.4% EUR 2
Slide 5: BA Vita Q1: Reported net sales increased as a result of the Georg Jensen acquisition
BA Vita Q1: Reported net sales increased as a result of the Georg Jensen acquisition, profitability burdened by lower volumes REPORTED NET SALES, EUR m COMPARABLE EBIT (EURm) AND COMPARABLE EBIT MARGIN, % +16.9% *-5.7% EURm % 140 12 10.6 10.7 15 • Reported net sales increased 126 121 10 through the
Slide 6: Investments and changes planned in glass production to better cater for premium and luxury products
Investments and changes planned in glass production to better cater for premium and luxury products • Elevating the Group profile more towards premium and luxury – focus on pioneering design and craftmanship • Planning for changes at the Rogaska and Iittala glass factories • Investing EUR 15 million
Slide 7: BA Fiskars Q1: Strong profitability despite a decline in net sales
BA Fiskars Q1: Strong profitability despite a decline in net sales REPORTED NET SALES, EUR m COMPARABLE EBIT (EURm) AND COMPARABLE EBIT MARGIN, % EURm % 220 211 -6.4% 50 25 • Comparable net sales 200 193 *-6.2% 39.3 43.6 decreased due to slow sell-out 20.4% 20.6% and retailers’ cautiousness in 180 1
Slide 8: Our clear Growth Strategy sets the framework for the choices we make
Our clear Growth Strategy sets the framework for the choices we make – we are increasingly value-driven Sharpened logic WE FOCUS ON WINNING: with active LOGIC portfolio Brands Channels Countries management Commercial excellence Direct-to-Consumer TRANSFORMATION Transformation LEVERS levers that deli
Slide 9: 3/4 of transformation levers delivering
3/4 of transformation levers delivering Q1 2024 Commercial • Gross margin +185 bps demonstrating the power of the brands excellence Direct to • Comparable DTC stable: e-commerce +12%, own retail network -6% mainly due to store closures consumer • DTC share of net sales 24% and >50% in BA Vita U.S. •
Slide 10: We continued making good progress in our ESG targets
We continued making good progress in our ESG targets ENVIRONMENTAL SOCIAL Target Nov Q1 2024 Target 2023 Q1 2024 Q1 2024 Q1 2024 1.8 0 80 15% -53% 49% 70 Base year 2021 50% Base year 2017 -60% Target set 2020 60% in 2030 in 2030 in 2024 Measured in connection to the employee engagement survey. Lates
Slide 11: Fiskars Group sets a long-term net-zero target
Fiskars Group sets a long-term net-zero target I Our plan is to reduce climate emissions to net zero by 2049, which also marks the Group’s 400th anniversary year.
Slide 12: Other highlights
Other highlights Surrounding consumers The Fiskars brand won Over 2/3 of cookware Reinforcing ownership in new ways – Gerber two Red Dot ‘Best of SKUs PFAS-free – All culture through expanded to camp the Best’ Product by the end of this year MyFiskars – Second cooking category and Design Awards plan
Slide 13: Guidance for 2024
Guidance for 2024 Assumptions behind the guidance - The operating + Savings from the environment is expected completed to remain challenging and organizational changes Fiskars Corporation expects impact demand in 2024 are expected to comparable EBIT to be slightly - Wage inflation to remain support
Slide 14: Q1 2024 Financials
Q1 2024 Financials APRIL 25, 2024
Slide 15: Q1 reported net sales increased, comparable net sales declined in a challenging market
Q1 reported net sales increased, comparable net sales declined in a challenging market Q1 2024 NET SALES BRIDGE, EURm Q1 2024 COMPARABLE NET SALES BY BUSINESS AREA, EURm 290 +2.9% BA Fiskars 156.0 -6.2% +27.4 282.9 280 -5.7% BA Vita (Org) 98.5 274.9 -3.7 -5.8% 271.2 -6.0 Other 1.0 270 -10.3 -5.8% 26
Slide 16: Q1 EBIT declined due to lower volumes, partially offset by higher gross margin and savings
Q1 EBIT declined due to lower volumes – partially offset by a higher gross margin and savings from organizational changes Q1 2024 EBIT BRIDGE BY COMPONENTS, EURm -6.1 35 -3.7 31.2 30.5 30 26.8 25.1 25 20 15 10 5 0 Q1 2023 FX Q1 2023 Sales/ Topline Marketing D&A Other Savings Savings Q1 2024 Georg Q1
Slide 17: Q1 Free cash flow declined, following its historical quarterly pattern
Q1 Free cash flow declined, following its historical quarterly pattern – inventory reduction continued EURm EURm 100 -33 250 Free cash flow -33 78 75 200 53 150 50 39 42 34 36 100 EURm compared 24 25 13 50 to Q1 2023 0 0 -3 -3 -25 -50 -20 Georg Jensen -100 -50 acquisition has -150 intensified the -7
Slide 18: Asset efficiency decreased temporarily due to the Georg Jensen acquisition
Asset efficiency decreased temporarily due to the Georg Jensen acquisition CAPITAL EMPLOYED EURm FINANCING, EURm Mar-24 Change Dec-23 Mar-24 Change Dec-23 GW and other intangible 595 3 592 Equity 759 -64 824 PPE and biological assets 214 -1 214 Interest-bearing debt 415 -8 423 Capitalised leases (RO
Slide 19: Challenging operating environment reflected in progress in sales and EBIT targets
Challenging operating environment reflected in progress in sales and EBIT targets FINANCIAL TARGETS TRACKING LTM LAST KPI TARGET 2021 2022 2023 Q1 2024 3 YEARS NET Organic, FX neutral Mid- CAGR. Single-Digit growth +14.2% +1.7% -9.7% -7.8% SALES -0.3% Mid-teen EBIT margin (excl. EBIT IAC) by end of
Slide 20: Highlights
Highlights SOLID TRANSFORMATION INVESTMENTS GUIDANCE FOR PERFORMANCE CONTINUED AND CHANGES 2024 INTACT: IN A CHALLENGING TO DELIVER: PLANNED IN GLASS C O M P A R A BL E E B I T MARKET: PRODUCTION TO GM% EXPECTED TO BE BETTER CATER FOR C O M P A R A BL E N E T SLIGHTLY ABOVE E-COM PREMIUM AND SALES -
Slide 21: Slide 21
Slide 22: Thank you!
Thank you! APRIL 25, 2024
Slide 23: Appendix
FISKARS ss. GROUP 0 Appendix
Slide 24: Consolidated Q1 Key Figures
Consolidated Q1 Key Figures Q1 P&L KEY FIGURES, EURm Q1 PER SHARE KEY FIGURES, EUR Q1 Q1 2024 2023 2024 2023 Net sales 282.9 274.9 Comparable Earnings per Share 0.19 0.27 Comparable gross profit 136.6 127.6 Earnings per Share 0.03 0.25 Sales and marketing -74.6 -60.7 Cash Earnings per Share -0.17 0.
Slide 25: Q1 Cash flow and change in cash
Q1 Cash flow and change in cash Q2 Q1 Cash and H1 Flow Cash vs.Flow LY (EURm) vs. LY and Plan (EURm) Q1 Change in Cash vs. LY (EURm) Q1 Q1 2024 vs. LY 2024 vs. LY EBITDA 27 - 17 Cash Balance period opening 127 + 12 Non-cash adjustments -11 -1 Translation difference -0 +0 Cash Flow from operations 16
Slide 26: Georg Jensen Purchase Price Allocation (PPA) breakdown
Georg Jensen Purchase Price Allocation (“PPA”) breakdown PPA EURm P&L Impacts of PPA (EURm) Comment Purchase Price, Equity (A) 124.7 Net Assets at Book Value 45.4 Q4-23 Q1-24 YTD 9/24 Q4-24 FY-25 => Fair Value adjs - Brand (trademark) + 61.0 - - - - - Fair Value adjs - Customer relationships + 20.0
Slide 27: Fiskars Group's quarterly development – last 3 years
Fiskars Group’s quarterly development – last 3 years NET SALES, EURm COMPARABLE EBIT (EURm) AND EBIT MARGIN, % EURm % +2.9% 60 20 *-5.8% 51.8 18 353 346 50 333 46.6 16 319 302 307 292 293 304 41.4 283 14 275 268 40 37.7 36.3 241 34.1 33.2 12 32.2 29.7 31.2 30 10 25.1 23.4 8 20 17.9 6 4 10 2 0 0 Q1 Q
Slide 28: BA Vita's quarterly development – last 3 years
BA Vita’s quarterly development – last 3 years NET SALES, EURm COMPARABLE EBIT (EURm) AND EBIT MARGIN, % +16.9% EURm % *-5.7% 250 40 25 35.9 34.7 215 31.9 20 200 187 30 15 176 24.5 24.6 10 150 134 140 20 16.9 121 127 126 14.4 5 119 108 116 108 114 10.6 12.2 10.7 0 100 10 7.8 3.0 -5 50 0 -10 -0.1 -15
Slide 29: BA Fiskars' quarterly development – last 3 years
BA Fiskars’ quarterly development – last 3 years NET SALES, EURm COMPARABLE EBIT (EURm) AND EBIT MARGIN, % EURm % 220 211 50 25 193 191 -6.4% 43.5 200 191 *-6.2% 39.3 180 40 20 165 167 157 151 153 156 160 30.6 29.5 30 28.7 15 140 130 26.7 127 121 24.7 120 20 17.7 10 100 15.2 11.1 80 10 7.4 5 60 2.4