Fiskars Oyj Abp · OMXHEX:FSKRS
Fiskars Oyj Abp — Q2 2024 Earnings Presentation
31 slides from Fiskars Oyj Abp's earnings presentation, Jul 18, 2024
Slide 1: Half-year Financial Report 2024
Half-year Financial Report 2024 ANOTHER SOLID QUARTER IN CHALLENGING MARKET J A NUARY -JUNE 2 02 4 CONDITIONS – ACCELERATING EFFICIENCY IMPROVEMENTS
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 ANOTHER SOLID DELIVERING GUIDANCE FOR GEORG JENSEN QUARTER IN A SAVINGS FROM 2024 INTACT: INTEGRATION CHALLENGING COMPLETED NEARLY MARKET: EFFICIENCY COMPARABLE EBIT COMPLETED – PROGRAMS EXPECTED TO BE ALL-TIME HIGH SLIGHTLY ABOVE ON TRACK WITH • GM% DRIVEN SIMPLIFIED WAY THE 2023 LEVEL E
Slide 4: Q2 2024 Group key figures
Q2 2024 Group key figures GROSS MARGIN % 49.1 Q2/2023: 46.8 REPORTED NET SALES, EURm COMPARABLE EBIT (EURm) AND COMPARABLE EBIT MARGIN, % FREE CASH FLOW EURm 49.3 EURm % +4.9% 50 15 *-5.3% 13.5% 350 307 319 41.4 36.3 Q2/2023: 41.6 300 280 281 40 11.4% 268 250 10 COMPARABLE EPS 8.7% 30 7.8% EUR 200 0
Slide 5: BA Vita Q2: All-time high gross margin
BA Vita Q2: All-time high gross margin, improving both organically and driven by Georg Jensen REPORTED NET SALES, EUR m COMPARABLE EBIT (EURm) AND • Reported net sales increased COMPARABLE EBIT MARGIN, % +14.3% through the acquisition of Georg -8.7%* EURm % Jensen 140 15 14.4 15 127 130 12.2 11.4% 1
Slide 6: BA Fiskars Q2: Softness in sell-out partially offset
BA Fiskars Q2: Softness in sell-out partially offset by strong spring season in the Nordics and Gerber’s good growth REPORTED NET SALES, EUR m COMPARABLE EBIT (EURm) AND • Comparable net sales decreased COMPARABLE EBIT MARGIN, % due to both the U.S. and EURm 37.7 % Continental Europe 198 200 191 191
Slide 7: Our clear Growth Strategy sets the framework for the choices we make
Our clear Growth Strategy sets the framework for the choices we make Sharpened logic WE FOCUS ON WINNING: with active LOGIC portfolio Brands Channels Countries management Commercial excellence Direct-to-Consumer TRANSFORMATION Transformation LEVERS levers that deliver U.S. China INNOVATION Simplifie
Slide 8: Transformation levers are making our foundation stronger
Transformation levers are making our foundation stronger for future growth Q2 2024 1-6/2024 Commercial • Gross margin +230 bps and all-time high at • Gross margin +210 bps excellence 49.1% • Comparable DTC -5%: e-commerce -9%, • Comparable DTC –3%: e-commerce stable, Direct to own retail network -2%
Slide 9: Simplified way of operating, brands-first approach
We are rigorously driving forward a simplified way of operating, “brands-first” approach, and accelerating efficiency improvements OUR CURRENT OPERATIONAL SETUP RECENT TRANSFORMATION EXAMPLES: Key drivers ▪ New leadership and capabilities – systematic Clear business improvement mindset in place Busi
Slide 10: Georg Jensen integration is nearly completed and synergy realization on track
Georg Jensen integration is nearly completed and synergy realization on track Acquisition rationale – supports All significant operations such as sales and our Growth Strategy and its sourcing fully integrated – only IT integration transformation levers ongoing Big brand: moves the needle Anticipati
Slide 11: Excellent progress in the circularity and inclusion experience ESG targets
Excellent progress in the circularity and inclusion experience ESG targets ENVIRONMENTAL SOCIAL Target May 1-6/2024 Target 2024 At the end 2.8 0 81 1-6/2024 1-6/2024 of 06/2024 77 24% -54% 58% Base year 2021 50% Base year 2017 -60% Target set 2020 60% in 2030 in 2030 in 2024 Measured in connection t
Slide 12: Other highlights
Other highlights Moomin Arabia Gerber delivers Iittala – clearly Wedgwood MyFiskars – expands offering growth driven by increased consumer collaboration by already over 10% and DTC – 8 brand distribution expansion engagement, e.g. Dame Magdalene of employees are stores opened H1 and strong Camp +9%
Slide 13: Guidance for 2024 (unchanged)
Guidance for 2024 Assumptions and actions behind the guidance (unchanged) - The operating environment expected to + Savings from the completed efficiency remain challenging and programs expected to impact demand support EBIT Fiskars Corporation expects - Wage inflation to remain comparable EBIT to b
Slide 14: Q2 2024 Financials
Q2 2024 Financials JULY 18, 2024
Slide 15: Q2 reported net sales increased through the acquisition of Georg Jensen
Q2 reported net sales increased through the acquisition of Georg Jensen, comparable net sales declined in a challenging market Q2 2024 NET SALES BRIDGE, EURm Q2 2024 COMPARABLE NET SALES BY BUSINESS AREA, EURm 290 +4.9% BA Fiskars 150.1 -2.7% +28.1 281.0 280 BA Vita (Org) 101.8 -8.7% -5.3% 270 267.9
Slide 16: Q2 EBIT EUR -4.2m from previous year
Q2 EBIT EUR -4.2m (EUR -7.8m excl. Georg Jensen) from previous year – savings partially offset the negative volume impact Q2 2024 EBIT EXCL. IAC BRIDGE, EURm EURm -4.2 25 -7.8 23.4 -0.1 23.3 20 +3.7 19.2 15.5 15 Emp l oy ee c osts SG&A 10 COGS 5 0 Q2-2023 FX Q2-2023 Sales/ Topline Marketing D&A Empl
Slide 17: H1 EBIT EUR -10.4m from previous year
H1 EBIT EUR -10.4m (EUR -11.5m excl. Georg Jensen) from previous year – savings offset the negative volume impact H1 2024 EBIT EXCL. IAC BRIDGE, EURm -10.5 EURm -11.5 54.7 -0.9 53.8 55 50 Emp l oy ee 45 +2.0 44.2 c osts 42.2 Emp l oy ee 40 c osts 35 SG&A 30 25 COGS 20 15 10 5 0 H1-2023 FX H1-2023 Sa
Slide 18: All-Time-High Q2 Free cash flow driven by Net Working Capital Reduction
All-Time-High Q2 Free cash flow driven by Net Working Capital Reduction QUARTERLY FREE CASH FLOW, EURm Q2 FREE CASH FLOW, EURm EURm EURm +8 Q2-24 vs. LY 100 250 EBITDA 21.5 - 15.6 78 Change in provisions -2.6 - 16.2 75 200 Non-cash adjustments -0.0 + 0.1 53 49 150 50 42 Cash Flow from operations 18.
Slide 19: 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 June-24 Jun-23 Dec-23 June-24 Jun-23 Dec-23 GW and other intangible 596 502 592 Equity 758 789 824 PPE and biological assets 216 196 214 Interest-bearing debt 414 251 423 Capitalised leas
Slide 20: Net Debt gradually declining post Georg Jensen acquisition
Net Debt gradually declining post Georg Jensen acquisition - Net Debt/ LTM EBITDA (excl. IAC) down to 2.7x NET DEBT (EURm) AND NET DEBT / LTM EBITDA (EXCL IAC) EURm Multiple 600 3.0x • Net Debt / EBITDA is 510 500 Max Target 2.5x expected to decline 478 447 towards the end of the year, provided the
Slide 21: 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 Q2 2024 3 YEARS NET Organic, FX neutral Mid- CAGR. Single-Digit growth +14.2% +1.7% -9.7% -5.8% SALES -2.0% Mid-teen EBIT margin (excl. EBIT IAC) by end of
Slide 22: Highlights
Highlights ANOTHER SOLID DELIVERING GUIDANCE FOR GEORG JENSEN QUARTER IN A SAVINGS FROM 2024 INTACT: INTEGRATION CHALLENGING COMPLETED NEARLY MARKET: EFFICIENCY COMPARABLE EBIT COMPLETED – PROGRAMS EXPECTED TO BE ALL-TIME HIGH SLIGHTLY ABOVE ON TRACK WITH • GM% DRIVEN SIMPLIFIED WAY THE 2023 LEVEL E
Slide 23: Gs —_ ae
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Slide 24: Thank you!
Thank you! JULY 18, 2024
Slide 25: Appendix
FISKARS ss. GROUP 1 Appendix
Slide 26: Consolidated Q2 and H1 Key Figures
Consolidated Q2 and H1 Key Figures Q2 AND H1 2024 P&L KEY FIGURES, EURm Q2 AND H1 2024 PER SHARE KEY FIGURES, EUR Q2 H1 Q2 H1 2024 2023 2024 2023 2024 2023 2024 2023 Net sales 281.0 267.9 564.0 542.8 Comparable Earnings per Share 0.10 0.17 0.35 0.44 Comparable gross profit 137.9 125.4 274.6 253.0 Ea
Slide 27: Q2 and H1 Cash flow and change in cash
Q2 and H1 Cash flow and change in cash Q2 AND H1 CASH FLOW VS. LY, EURm Q2 AND H1 CHANGE IN CASH VS. LY, EURm Q2-24 vs. LY H1-24 vs. LY Q2-24 vs. LY H1-24 vs. LY EBITDA 21.5 - 15.6 47.9 - 33.2 Cash Balance period opening 53.7 - 22.6 127.3 + 11.5 Change in provisions -2.6 - 16.2 -12.7 - 16.3 Translat
Slide 28: Georg Jensen Purchase Price Allocation 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 Q2-24 H1-24 Q3-24 Q4-24 FY-25 => Fair Value adjs - Brand (trademark) + 61.0 - - - - - - Fair Value adjs - Customer relationships +
Slide 29: 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 % +4.9% 60 20 *-5.3% 51.8 18 353 346 50 333 16 319 307 304 41.4 292 293 283 281 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 19.2 6 4 10 2 0 0 Q2 Q
Slide 30: 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, % +14.3% *-8.7% EURm % 220 215 40 25 200 35.9 34.7 187 176 31.9 20 180 30 15 160 24.5 24.6 134 140 140 126 130 10 116 121 127 119 20 16.9 120 108 114 14.4 5 100 12.2 10.7 0 80 10 7.8 3.0 -5 60 1.6
Slide 31: 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 -1.9% 43.5 200 191 191 *-2.7% 180 40 20 165 167 157 151 153 156 150 160 30.6 29.5 30 28.7 15 140 130 26.7 127 121 24.7 22.3 120 20 17.7 10 100 15.2 11.1 80 10 7.4 5 60 2.4