FISKARS Q2 2018 - Net sales decreased by 6.0%
HALF-YEAR FINANCIAL REPORT JANUARY-JUNE 2018: Comparable net sales and comparable EBITA decreased, full-year outlook for comparable EBITA unchanged
Second quarter 2018 in brief:
- Net sales decreased by 6.0% to EUR 272.6 million (Q2 2017: 290.0)
- Comparable net sales1) decreased by 0.8%
- Comparable2) EBITA remained at last year’s level at EUR 22.3 million (22.4)
- EBITA decreased to EUR 20.2 million (21.3)
- Cash flow from operating activities before financial items and taxes was EUR 42.7 million (48.6)
- Earnings per share (EPS) were EUR 0.13 (0.31, comparable figure 0.14)
January–June 2018 in brief:
- Net sales decreased by 9.6% to EUR 538.7 million (Q1–Q2 2017: 596.1)
- Comparable net sales1) decreased by 3.5%
- Comparable2) EBITA decreased by 16% to EUR 45.9 million (54.4)
- EBITA decreased to EUR 42.2 million (52.2)
- Cash flow from operating activities before financial items and taxes was EUR 3.5 million (2.2)
- Earnings per share (EPS) were EUR 0.33 (1.39, comparable figure 0.43)
Outlook for 2018
In 2018, Fiskars expects the Group's comparable net sales to be slightly below the previous year and comparable EBITA to increase from 2017. The fourth quarter of the year is significant both in terms of net sales and profitability. Previously, Fiskars expected the Group's comparable net sales and comparable EBITA to increase from 2017. • The comparable net sales excludes the impact of exchange rates, acquisitions and divestments • Items affecting comparability in EBITA includes restructuring costs, impairment or provision charges, integration related costs, acquisitions and divestments, and gain and loss from the sale of businesses
“President and CEO, Fiskars, Jaana Tuominen: ”We have made good progress in improving our operational efficiency during the second quarter. We are working in a more disciplined manner to leverage the opportunities available to our strong brands. We focus in building a unified company with capabilities to deliver growth and solid stakeholder value.
The delayed spring season in the first quarter shifted gardening deliveries to the second quarter, and the Functional Americas business recovered well from the slow start to the year as weather conditions improved. Gardening sales also increased in the Nordic countries, however this increase did not offset the soft development in other European countries.
Comparable net sales decreased in the Living segment. Lower traffic to stores in some markets and a continued transformation of the retail sector impacted demand. We aim to fuel growth and continue to develop our channel strategy, including direct e-commerce, where the net sales continued to increase. We are making progress in terms of operational efficiency in the English & Crystal Living business, however the topline development remains a challenge. The Scandinavian Living business is progressing according to our expectations.
I was pleased to see that despite the decrease in net sales, comparable EBITA improved in the Functional segment, driven by the Functional EMEA and the Outdoor businesses, where our actions to increase efficiency are gaining ground.
Fiskars Group lowered its guidance for comparable net sales for the full year 2018. We now expect comparable net sales to be slightly below the previous year. We continue to expect that in 2018, the comparable EBITA will increase from 2017.
We are taking determined action to address the issues that are impacting our business. We are focusing on driving sales, as especially the fourth quarter is important for the Living segment, both in terms of net sales and profitability. In addition, we continue to manage our costs prudently.
Fiskars will organize a Capital Markets Day in November 2018, where we will discuss our strategy and its execution in further detail.” ”