Fiskars Oyj Abp · OMXHEX:FSKRS
Fiskars Oyj Abp — Q3 2023 Earnings Presentation
32 slides from Fiskars Oyj Abp's earnings presentation, Oct 26, 2023
Slide 1: Interim Report Q3 2023
Interim Report Q3 2023 SALES AND EBIT DECLINED IN A CHALLENGING OPERATING JANU ARY – SEPTEM BE R 2023 ENVIRONMENT,CASH FLOW AND GROSS MARGIN IMPROVED
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 Q3 2023
Highlights of Q3 2023 SAFO LECSUA S NODNE BI T SADLET CS CDOEN CTLII NUE N E DD DATC CCOEU T GAT LER R EW I NG 20 2203 2 3G G UUI DI D AN CE AN CE CE D AC S LI HN FLO ED WIN A D TOU EGT ROOW LOW WI T H O THOEURRCG HRAONWNET LS H RE I TE R A TED U PD A T ED O N : A CNHD PR ONFI A LLE GITNG S TCROONNS
Slide 4: Q3 2023 Group key figures
Q3 2023 Group key figures GROSS MARGIN % NET SALES, EURm COMPARABLE EBIT (EUR m) AND EBIT -17.6% *-12.7% MARGIN (%) 47.2 37.7 Q3/2022: 44.9 292 293 40 13.4% 15 11.7% 33.2 267 34.1 11.4% 249 10 241 FREE CASH FLOW 7.4% 30 4.2% EURm 5 20 17.9 0 52.9 -5 Q3/2022: -64.2 10.4 -10 10 EARNINGS PER -15 SHARE
Slide 5: Vita Q3: Own e-commerce continued to develop positively
Vita Q3: Own e-commerce continued to develop positively, sales decreased in the retailer channel NET SALES, EURm COMPARABLE EBIT (EURm) AND COMPARABLE EBIT MARGIN, % -14.9% *-9.7% 24.5 150 25 18.3% 24.6 20 • E-commerce growth driven 140 17.5% 134 especially by Moomin Arabia 14.1% 15 118 119 11.2% 11
Slide 6: Terra Q3: Retailers' focus on inventories continued to have a negative impact
Terra Q3: Retailers’ focus on inventories continued to have a negative impact NET SALES, EURm COMPARABLE EBIT (EURm) AND COMPARABLE EBIT MARGIN, % -19.9% *-14.9% 120 20 15 • Net sales decreased 113 112 108 11.0% especially in Europe; In the 100 95 10 U.S., Gerber’s sales were 87 12.4 5.6% 4.8% suppo
Slide 7: Crea Q3: Strong EBIT margin despite lower volumes
Crea Q3: Strong EBIT margin despite lower volumes NET SALES, EURm COMPARABLE EBIT (EURm) AND COMPARABLE EBIT MARGIN, % -21.2% 13.9 50 *-17.3% 14 33.5% 35 • Sales decreased in Europe as 46 11.4 30 well as in the U.S., where the 45 43 26.3% 42 12 25.0% 23.2% timing of shipments between 40 25 35 10.0 Q
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 FOCUS ON WINNING: LOGIC Brands Channels Countries Commercial excellence Direct to consumer TRANSFORMATION LEVERS U.S. China INNOVATION ENABLERS PEOPLE DIGITAL SUSTAINABILITY & DESIGN OCTOBER 26, 2023
Slide 9: 3/4 of transformation levers delivering
3/4 of transformation levers delivering Q3 2023 1-9/2023 Commercial • Gross margin +240 bps • Gross margin +220 bps excellence demonstrating power of the brands Direct to • DTC: 6% growth; and 25% of net sales • DTC: 6% growth; and 22% of net sales consumer • E-commerce +16%; own retail network +2%
Slide 10: Continued good progress in our ESG strategy
Continued good progress in our ESG strategy ENVIRONMENTAL SOCIAL Q3 Q2 2023 Target 2023 Target Q3 2023 Q3 2023 Q3 2023 4.6 0 72 80** 8% -53% 46% 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. Latest survey
Slide 11: Georg Jensen acquisition: Expanding our portfolio of luxury brands
Georg Jensen acquisition: Expanding our portfolio of luxury brands • Renowned Danish lifestyle brand, offering Home and Jewellery products • Acquisition completed on Oct 1, 2023 for EV of USD 165m (EUR 155m) • 9.5x EV/EBITDA* (LTM) on a stand-alone basis • 4.7x EV/EBITDA (LTM) with cost synergies, n
Slide 12: Organizational changes: speeding up our transformation and increasing efficiency
Organizational changes: speeding up our transformation and increasing efficiency CHANGES ANNOUNCED IN SEPTEMBER 2023 Continuation to organizational What Expected outcome changes announced and • BAs Terra and Crea combined into • Reduction of ~400 roles completed in spring 2023 the new BA Fiskars – e
Slide 13: Guidance for 2023
Guidance for 2023 Assumptions behind the guidance (updated on October 12, 2023) - continued volatility of the + savings from the market environment; low targeted organizational consumer confidence and changes from H2 onward Fiskars expects comparable EBIT retailer focus on inventory and prudent cost
Slide 14: Q3 2023 Financials
Q3 2023 Financials OCTOBER 26, 2023
Slide 15: Q3 Net sales declined as low consumer confidence and retailer focus on inventories continued
Q3 Net sales declined as low consumer confidence and retailer focus on inventories continued to have an impact Q3 2023 NET SALES BRIDGE BY BUSINESS AREAS, Q3 2023 NET SALES BRIDGE BY GEOGRAPHICAL EURm AREAS, EURm -17.6% -12.7%* -17.6% -12.7%* 300 300 292.6 -2.2 -14.2 292.6 -2.2 -14.2 290 290 280 276
Slide 16: Q3 Gross margin improved clearly, comparable EBIT declined due to volumes
Q3 Gross margin improved clearly, comparable EBIT declined due to volumes Q3 2023 EBIT BRIDGE BY BUSINESS AREAS, Q3 2023 EBIT BRIDGE BY COMPONENTS, EURm EURm -15.3 -10.6 -15.3 -10.6 34 33.2 -0.9 35 -3.8 33.2 -0.9 -3.8 32 30 28.5 -5.5 30 28.5 28 26 25 24 -1.3 -0.4 -3.4 22 20 17.9 20 17.9 18 15 16 14
Slide 17: Q3 Cash flow increased significantly driven by continued actions to adjust supply volumes
Q3 Cash flow increased significantly driven by continued actions to adjust supply volumes EURm EURm 99 100 250 75 75 +117 53 200 150 +117 50 39 42 EURm compared 34 36 100 25 24 to Q3 2022 13 50 +245 0 0 -3 -3 -25 -50 -100 EURm compared -50 -150 to 1-9/2022 -75 -64 -70 -200 -100 -250 Q3-20 Q2-22 Q3-2
Slide 18: Trade Working Capital reduced by EUR 121 million vs. year-end
Trade Working Capital reduced by EUR 121 million vs. year-end driven by Terra inventories EURm % 40% 600 38% 38% 40 36% 36% 550 33% 34% 514 35 -121 500 31% 29% 30% 451 456 450 29% 426 439 428 30 28% 26% 393 400 373 373 350 336 349 25 EURm compared 310 291 to 30.9.2022 300 20 250 -58 15 200 150 10 10
Slide 19: Net debt decreased in Q3 but still above the year-end level
Net debt decreased in Q3 but still above the year-end level due to increased lease liabilities EURm 400 2.4 370 2.2 Senior Net Debt -44 350 344 342 336 325 2.0 300 134 1.8 102 115 133 138 1.6 EURm compared 250 to 30.9.2022 215 222 1.4 207 200 180 1.2 95 144 146 145 107 105 1.0 Senior Net Debt 150 -1
Slide 20: Capital Employed slightly down from the year-end
Capital Employed slightly down from the year-end driven by Trade Working Capital reduction Capital Employed (EURm) Funding (EURm) 30.09.22 31.12.22 30.09.23 30.09.22 31.12.22 30.09.23 GW and other intangible 506 500 506 Equity 846 824 802 PPE and biological assets 1 94 1 93 1 98 Interest-bearing deb
Slide 21: Free cash flow delivering, challenging operating environment reflected in sales and EBIT
Free cash flow delivering, challenging operating environment reflected in progress in sales and EBIT FINANCIAL TARGETS TRACKING FY FY LTM SEPT KPI TARGET 2021 2022 2023 NET SALES Organic, FX neutral Mid-Single-Digit growth 14.2% 1.7% -12.7% EBIT Mid-teen EBIT margin (excl. IAC) by end of 2025 12.3%
Slide 22: Expected comparable EBIT and IAC impacts from Georg Jensen acquisition
Expected comparable EBIT and IAC impacts from Georg Jensen acquisition GEORG JENSEN HISTORICAL Q4 EBIT*, EURm Expected acquisition impact on comparable EBIT in Q4 16 Positive organic EBIT contribution 13 Negative impact from amortization of intangible assets not material (low single digits on annual
Slide 23: Highlights of Q3 2023
Highlights of Q3 2023 SAFO LECSUA S NODNE BI T SADLET CS CDOEN CTLII NUE N E DD DATC CCOEU T GAT LER R EW I NG 20 2203 2 3G G UUI DI D AN CE AN CE CE D AC S LI HN FLO ED WIN A D TOU EGT ROOW LOW WI T H O THOEURRCG HRAONWNET LS H RE I TE R A TED U PD A T ED O N : A CNHD PR ONFI A LLE GITNG S TCROONNS
Slide 24: Fiskars Group's Capital Markets Day 2023
Fiskars Group’s Capital Markets Day 2023 Date: November 2, 2023 at 14:00- 16:00 EET Place: At Fiskars Group’s headquarters in Espoo + the event will also be webcasted Agenda: To present an update on the progress of the Growth Strategy and our value creation model More information and a registration
Slide 25: Thank you!
Fiskars Gro up 202 3 Thank you! OCTOBER 26, 2023
Slide 26: Appendix
FISKARS ss. GROUP 0 Appendix
Slide 27: Consolidated Q3/YTD September 2023 income statement
Consolidated Q3/YTD September 2023 income statement Q3/YTD September P&L KEY FIGURES, EURm Key Takeaways Q3 YTD September Gross margin +240bps (Q3), and +220bps (YTD) vs. 2023 2022 2023 2022 LY Net sales 241.3 292.6 784.0 944.3 Comparable gross profit 113.9 131.2 366.8 421.4 Operational expenses dow
Slide 28: Q3/YTD September 2023 Cash flow
Q3/YTD September 2023 Cash flow Q2 Q3 and and H1 YTDCash CashFlow Flow vs.vs. LYLY and (EURm) Plan (EURm) Q3 and YTD Change in Cash vs. LY (EURm) Q3 YTD Q3 YTD 2023 vs. LY 2023 vs. LY 2023 vs. LY 2023 vs. LY EBITDA 31 - 15 114 - 41 Cash Balance period opening 42 - 32 116 + 84 Non-cash adjustments 0
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, % 60 20 -17.6% 51.8 18 353 *-12.7% 50 333 46.6 16 313 319 302 307 292 293 304 41.4 14 267 275 268 40 35.7 36.0 36.3 241 34.1 33.2 12 32.2 29.7 31.2 30 10 23.4 8 20 17.9 6 4 10 2 0 0 Q3 Q4 Q1 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, % -14.9% *-9.7% 200 187 40 25 176 35.9 171 20 31.9 150 140 30 15 134 116 121 127 119 24.9 24.5 24.6 10 111 108 108 114 5 100 20 16.9 0 14.4 12.4 12.2 -5 10.6 10.7 50 10 7.8 -10 3.0 -15 0 0 -20 Q3 Q
Slide 31: BA Terra's quarterly development – last 3 years
BA Terra’s quarterly development – last 3 years NET SALES, EURm COMPARABLE EBIT (EURm) AND EBIT MARGIN, % 180 173 40 25 -19.9% 35.5 160 157 *-14.9% 149 31.2 20 139 30 140 130 118 22.8 15 120 113 111 108 106 98 20 17.4 10 100 87 87 15.0 12.4 11.8 80 5 10 6.8 6.2 5.2 60 2.1 0 40 0 -5 20 -3.3 0 -10 -7.
Slide 32: BA Crea's quarterly development – last 3 years
BA Crea’s quarterly development – last 3 years NET SALES, EURm COMPARABLE EBIT (EURm) AND EBIT MARGIN, % -21.2% 55 *-17.3% 15 35 52 13.9 50 47 47 12.8 46 30 45 44 42 43 11.7 42 40 11.3 11.4 40 38 37 10.0 25 36 10 35 34 8.9 8.3 8.1 8.1 20 30 7.8 25 15 5.7 20 4.5 5 15 10 10 5 5 0 0 0 Q3 Q4 Q1 Q2 Q3 Q4