Fiskars Oyj Abp · OMXHEX:FSKRS
Fiskars Oyj Abp — Q4 2024 Earnings Presentation
37 slides from Fiskars Oyj Abp's earnings presentation, Feb 26, 2025
Slide 1: Financial Statement Release 2024
Financial Statement Release 2024 STRONG FINISH TO THE YEAR IN CHALLENGING MARKET JANU ARY -DE CEM BE R 2024 CONDITIONS – FULL-YEAR COMPARABLE EBIT INCREASED SLIGHTLY, DESPITE LOWER VOLUMES
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 STRONG FINISH TO TRANSFORMATION THE BOARD GUIDANCE FOR THE YEAR: DELIVERING: PROPOSES AN 2025: INCREASING FULL-YEAR COMP. ALL-TIME-HIGH FY DIVIDEND: EBIT INCREASED GROSS MARGIN SLIGHTLY FROM 48.8% +200 BPS C O M P A R A BL E E B I T 2023 EXPECTED TO ALL-TIME HIGH Q4 EUR 0.84 PER IMPROVE F
Slide 4: Q4 2024 Group key figures – Record EBIT driven by gross margin and cost efficiency
Q4 2024 Group key figures – Record EBIT COMPARABLE EBIT, EURm 42.9 driven by gross margin and cost efficiency Q4/2023: 37.7 GROSS MARGIN, % NET SALES, EURm COMPARABLE EBIT (EUR m) AND COMPARABLE EBIT MARGIN, % 49.4 Q4/2023: 46.8 EURm % -2.5% *-2.4% 50 15 FREE CASH FLOW, EURm 69.4 400 42.9 353 346 35
Slide 5: FY 2024 Group key figures – comp. EBIT of EUR 111m, up EUR 1.1m from 2023
FY 2024 Group key figures – comp. EBIT of COMPARABLE EBIT, EURm 111.4 EUR 111m, up EUR 1.1m from 2023 2023: 110.3 GROSS MARGIN, % REPORTED NET SALES, EURm COMPARABLE EBIT (EUR m) AND 48.8 COMPARABLE EBIT MARGIN, % 2023: 46.8 EURm % +2.4% FREE CASH FLOW, EURm 81.7 *-5.0% 160 154.2 151.0 15 1,400 1,25
Slide 6: Savings fully compensated impact of declining volumes, supply chain efficiency improvement to continue
Savings fully compensated impact of declining volumes, supply chain efficiency improvement to continue 2024 EBIT EXCL. IAC BRIDGE, EURm +1.1 120 -1.6 +110.3 +109.2 +3.9 +111.4 +107.6 100 SG&A 80 COGS 60 40 20 0 FY-23 Reported FX FY-23 Sales/ Marketing D&A Other Net savings FY-24 Georg FY-24 Comparab
Slide 7: U.S. tariffs expected to have minor impacts – mostly absorbed by price increases
U.S. tariffs expected to have minor impacts – mostly absorbed by price increases • The U.S. government imposes tariffs on foreign goods across industries – the final extent remains unknown, and the situation is continuously evolving • The U.S. accounts for approximately 30% of Fiskars Group's net sa
Slide 8: Strong Free Cash Flow rebound in Q4 – Full-year cash flow back to historical levels
Strong Free Cash Flow rebound in Q4 – Full-year cash flow back to historical levels QUARTERLY FREE CASH FLOW, EURm Q4 FREE CASH FLOW, EURm EURm EURm Q4-24 Q4 vs. Q3 Q4 vs. LY EBITDA 51.6 + 31.5 - 2.3 100 -8 +86 200 Change in provisions 2.3 - 6.2 + 2.3 78 Non-cash adjustments 0.1 + 1.1 + 33.1 75 69 1
Slide 9: Net Debt / EBITDA for 2024 slightly above 2.5x target level at 2.55x
Net Debt / EBITDA for 2024 slightly above 2.5x target level at 2.55x NET DEBT (EURm) AND NET DEBT / LTM EBITDA (EXCL IAC) EURm Multiple 600 3.0x 529 Max Target 510 494 500 478 2.5x 447 400 2.0x 370 344 342 336 187 325 Jensen Georg 300 1.5x 222 207 200 1.0x 145 260 100 0.5x 0 0.0x Q4-21 Q1-22 Q2-22 Q
Slide 10: Solid cash position enables an increasing dividend: Board's proposal EUR 0.84 per share
Solid cash position enables an increasing dividend: Board’s proposal EUR 0.84 per share COMP. EPS AND DPS 2019-2023 CEPS AND DPS 2019-2023 2.4%* EUR EUR Dividend growth 2.68 2023-2024 1.37 2.46 1.19 1.16 5.2%** 0.99 1.07 1.51 Dividend yield 0.80 0.82 0.84* 0.76 1.39 0.60 79%* 0.60 0.76 0.80 0.82 0.8
Slide 11: Business Area performance and strategic topics
Business Area performance and strategic topics 11 FEBRUARY 6, 2025 FISKARS GROUP FINANCIAL STATEMENT RELEASE 2024
Slide 12: Vita BA: Net sales decreased in a challenging market, good growth with Royal Copenhagen and Moomin Arabia
Vita BA: Net sales decreased in a challenging market, good growth with Royal Copenhagen and Moomin Arabia NET SALES, EURm COMPARABLE EBIT (EURm) AND -2.1% MARGIN, % -2.1%* EURm % 250 215 40 35.9 25 210 34.7 200 187 31.9 33.3 • Q4 comparable net sales -2.1% 171 176 30 16.2% 20 24.9 20.4% 15.9% sharpl
Slide 13: Planned organizational changes to enable growth via clarified structure and strategic reinvestments
Planned organizational changes to enable growth via clarified structure and strategic reinvestments PLANNED IMPACT RE-INVESTMENT -10 EURm cost reduction +12 EURm +12m EUR -10m EUR 2025 marketing The planned changes in 4 EURm one-off cost reduction 2025increase spend marketing Vita will clarify brand
Slide 14: Business Area Vita highlights
Business Area Vita highlights DTC focus: ~500 Vita Wedgwood category Vita U.S. e-commerce: First full year of Georg stores in 2024, 50 expansion achieves high single-digit in Q4 Jensen – moving the stores more than early success in China driven by Waterford needle: share of luxury previous year pres
Slide 15: Royal Copenhagen 250 years Moomin 80 years
Royal Copenhagen 250 years Moomin 80 years 15 FEBRUARY 6, 2025 FISKARS GROUP FINANCIAL STATEMENT RELEASE 2024 Designed by HM Queen Margrethe II
Slide 16: BA Fiskars Q4: Comparable EBIT improved driven by GM uplift and cost management, despite lower volumes
BA Fiskars Q4: Comparable EBIT improved driven by GM uplift and cost management, despite lower volumes NET SALES, EURm COMPARABLE EBIT (EURm) AND MARGIN, % -3.3% EURm % -3.0%* 200 20 15 • Comparable net sales -3.0% in Q4, 165 15.1 11.9 150 141 127 130 126 10 improvement over Q3 (-4.9%) Q4 10 10.7% 7
Slide 17: Business Area Fiskars highlights
Business Area Fiskars highlights Fiskars U.S. focus on Fiskars 375 – testament Winning in a tough Starting 2025 all Fiskars to enduring brand market – case Fiskars third party e-commerce cookware manufactured strength Germany delivering results is PFAS-free 17 FEBRUARY 6, 2025 FISKARS GROUP FINANCIA
Slide 18: Winning in a tough market – Case Fiskars Germany
Winning in a tough market Case Fiskars Germany • Germany now second largest country for BA Fiskars • Fiskars the strong #2 in the DIY market • Taking share & performing in continued tough market environment • Distribution gains - new customers, increased shelf space • Brand strength with convincing
Slide 19: Vita and Fiskars: Operationally independent companies to accelerate their different strategic growth opportunities
Vita and Fiskars: Operationally independent companies to accelerate their different strategic growth opportunities BUSINESS AREA FISKARS (Net sales: EUR 550m) BUSINESS AREA VITA (Net sales: EUR 610m) CHANNELS BY NET SALES CHANNELS BY NET SALES • A market leader in • Unique portfolio of Direct its ca
Slide 20: New organization in force ahead of time – allows for speed of execution
New organization in force ahead of time – allows for speed of execution, and is a key enabler for future growth Organization in force Feb 1, two months ahead of schedule Full business Fiskars Vita Dedication accountability Accelerate differing Enabled by End-to-end responsible growth opportunities –
Slide 21: Net sales from circular products almost doubled from previous year, supplier target reached
Net sales from circular products almost doubled from previous year, supplier target reached – We remain committed to ESG ENVIRONMENTAL SOCIAL Target May 2024 Target 2024 2024 At the end 2.5 0 80 2024 2024 -44% * of 2024 77 26% -54% 64% Base year 2021 50% Base year 2017 -60% Base year 2018 -30% Targe
Slide 22: Guidance for 2025
Guidance for 2025 Assumptions and actions behind the guidance - The operating + Further gross margin environment expected to improvement is expected remain challenging and to support EBIT impact demand Fiskars Corporation expects + The savings from comparable EBIT improve from the completed organiza
Slide 23: Highlights
Highlights STRONG FINISH TO TRANSFORMATION THE BOARD GUIDANCE FOR THE YEAR: DELIVERING: PROPOSES AN 2025: INCREASING FULL-YEAR COMP. ALL-TIME-HIGH FY DIVIDEND: EBIT INCREASED GROSS MARGIN SLIGHTLY FROM 48.8% +200 BPS C O M P A R A BL E E B I T 2023 EXPECTED TO ALL-TIME HIGH Q4 EUR 0.84 PER IMPROVE F
Slide 24: Thank you!
Thank you! 24 FEBRUARY 6, 2025 FISKARS GROUP FINANCIAL STATEMENT RELEASE 2024
Slide 25: Appendix
FISKARS ss. GROUP 0 Appendix
Slide 26: Consolidated Q4 and 2024 Key Figures
Consolidated Q4 and 2024 Key Figures Q 4 AN D 2 0 2 4 P & L K E Y F I G U R E S , E U R m Q 4 AN D 2 0 2 4 P E R S H AR E K E Y F I G U R E S , E U R Q4 FY-24 Q4 FY-24 2024 2023 2024 2023 2024 2023 2024 2023 Net Sales 337.2 345.8 1,157.1 1,129.8 Comparable Earnings per Share 0.57 0.40 1.07 0.99 Comp
Slide 27: Items Affecting Comparability Q4 and FY 2024
Items Affecting Comparability Q4 and FY 2024 Q4-2024 FY-2024 IFRS IAC Excl IAC IFRS IAC Excl IAC Net Sales 337.2 - 337.2 1,157.1 - 1,157.1 COGS -174.5 + 3.8 -170.7 -640.0 + 47.0 -593.0 Gross Profit 162.7 + 3.8 166.5 517.1 + 47.0 564.1 Sales&Marketing expenses -94.2 + 2.6 -91.5 -324.4 + 8.3 -316.1 Ad
Slide 28: Transformation levers are making our foundation stronger for future growth
Transformation levers are making our foundation stronger for future growth Q4 2024 1-12/2024 Commercial • Gross margin +260 bps and all-time high at • Gross margin +200 bps excellence 49.4% • Comparable DTC -2%: e-commerce -4%, • Comparable DTC –1%: e-commerce -3%, Direct to own retail network -1% o
Slide 29: 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 LAST KPI TARGET 2021 2022 2023 2024 3 YEARS NET Organic, FX neutral Mid- CAGR. Single-Digit growth +14.2% +1.7% -9.7% -5.0% SALES -4.3% Mid-teen EBIT margin (excl. EBIT IAC) by end of 2025 12
Slide 30: Record Q4 comparable EBIT of EUR 43 million enhanced by gross margin and cost efficiency
Record Q4 comparable EBIT of EUR 43 million enhanced by gross margin and cost efficiency Q4 2024 EBIT EXCL. IAC BRIDGE, EURm 60 +5.2 42.9 40 37.7 20 0 Q4-23 Sales/ Marketing D&A Other Net Savings Q4-24 Production Income volume 30 FEBRUARY 6, 2025 FISKARS GROUP FINANCIAL STATEMENT RELEASE 2024
Slide 31: Free Cash Flow amounted to EUR 82 million driven by effective working capital management
Free Cash Flow amounted to EUR 82 million driven by effective working capital management Free Cash Flow 2020-2024 (EURm) Free Cash Flow 2020-2024 (EURm) FY-20 FY-21 FY-22 FY-23 FY-24 EBITDA 174.7 205.1 194.3 167.9 119.6 184.9 174.6 Change in provisions 3.7 17.3 -11.2 -27.9 -1.8 Non-cash adjustments
Slide 32: Full year 2024 free cash flow and changes in net debt
Full year 2024 free cash flow and changes in net debt FY-24 Free Cash Flow (EURm) Change in Net Debt (EURm) +47.3 +40.6 +3.5 493.9 150 +28.6 -51.5 500 446.7 -81.7 +21.0 450 +63.9 +116.7 400 350 100 -12.1 +81.7 300 250 200 50 150 100 50 0 0 Cash Flow Change Capex Cash Tax Free Cash Net Debt Free Divi
Slide 33: Net Debt / EBITDA slightly above target level of 2.5x at 2.55x
Net Debt / EBITDA slightly above target level of 2.5x at 2.55x CAPITAL EMPLOYED EURm FINANCING, EURm Dec-24 Dec-23 Dec-24 Dec-23 Equity 796.5 823.7 GW and other intangible 604.2 591.8 Interest-bearing debt 407.1 423.1 PPE and biological assets 225.2 214.5 Lease liabilities 147.6 150.8 Capitalised le
Slide 34: 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 YTD Sep Q4-24 FY-24 FY-25 => Fair Value adjs - Brand (trademark) + 61.0 - - - - - Fair Value adjs - Customer relationships + 20.0 -
Slide 35: 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 % 60 20 -2.5% 51.8 18 -2.4%* 353 346 50 333 337 16 319 42.9 304 293 283 281 14 275 268 40 37.7 256 36.3 241 33.2 12 32.2 29.7 31.2 30 10 25.1 24.3 23.4 8 20 17.9 19.2 6 4 10 2 0 0 Q4 Q
Slide 36: 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, % -2.1% -2.1%* EURm % 220 215 210 40 25 200 35.9 34.7 187 33.3 176 31.9 20 180 30 15 160 24.6 140 139 140 126 130 10 121 127 119 20 16.9 120 108 114 14.4 5 100 12.7 10.7 0 80 10 7.8 3.0 -5 60 1.6 0
Slide 37: 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 -3.3% 43.5 200 191 -3.0%* 180 40 20 165 167 160 151 153 156 150 30.6 29.5 140 30 26.7 15 127 130 126 24.7 121 115 22.3 120 20 10 100 15.2 13.6 11.9 11.1 80 10 7.4 5 60 2.4