Fiskars Corporation
Inside information
October 24, 2024 at 08.35 a.m. EEST
Inside information: Fiskars Group plans to separate its two Business Areas into independent operations and legal entities, completing 'brands first' approach
In line with its strategy, Fiskars Group plans to separate its Business Areas Fiskars and Vita to accelerate their different strategic growth opportunities and investment needs. Fiskars and Vita will become two separate, fully accountable businesses and independent legal entities.
After the planned split, Fiskars Group will consist of two operationally independent companies, Fiskars and Vita, each headed by its own CEO and jointly comprising over 95% of Fiskars Group's total headcount. A lean group organization will focus on portfolio and performance management as well as stock listed company requirements.
The new organization is expected to be effective starting on 1 April 2025, with the legal entity structure completed by the end of the first quarter of 2026.
Once completed, the new structure together with other simplification actions initiated by Fiskars Group are expected to generate annual, run-rate cost savings of approximately EUR 12 million, the majority of which will be realized in 2025. The expected one-off transition expenses, reported as items affecting comparability, of approximately EUR 8 million will be recorded gradually as actions are completed.
"Since we started our transformation journey in 2021, we have focused on transformation levers to strengthen our foundation for growth and have significantly improved our cost efficiency. We have moved from a centralized, matrix structure into a 'brands first' approach where the Business Areas have accountability for their performance. Separating the Business Areas into operationally independent companies is a key step on this transformation journey," says Fiskars Group's President & CEO, Nathalie Ahlström.
"The two Business Areas have different strategic growth opportunities and investment needs. This new decentralized structure will improve our flexibility and speed of execution. Critically, it will bring us closer to the consumer - a fundamental requirement for our innovative, design-driven brands. This move will further enable us to build the key capabilities, strengthen motivation and the engagement of our employees in each brand."
The planned changes are expected to result in changes in employee roles and reporting lines globally. Processes and timelines will vary from one country to another. Fiskars Group will work closely with its employees and their representatives to ensure that they are fully consulted about the proposals.
Business Area Fiskars and Business Area Vita in short
Business Area Fiskars consists of the gardening and outdoor categories, as well as the scissors and creating, and cooking categories. The brands include Fiskars and Gerber.
Business Area Vita offers premium and luxury products for the tableware, drinkware, jewelry and interior categories. Its well-known brands include Georg Jensen, Royal Copenhagen, Wedgwood, Moomin Arabia and Iittala.
Webcast
Fiskars Group will hold a Q3 2024 related webcast on October 24, 2024 at 11:00 a.m. (EEST). It will be held in English and can be followed at https://fiskars.videosync.fi/q3-2024.
Presentation materials will be available at www.fiskarsgroup.com. An on-demand version of the webcast will be available on the Group's website. Personal details gathered during the event will not be used for any other purpose.
FISKARS CORPORATION
Nathalie Ahlström
President & CEO
Media and investor contacts:
Sanna Hellstedt, Director, Investor Relations (interim) and External Communications, tel. +358 40 553 3151
Fiskars Group in brief
Fiskars Group (FSKRS, Nasdaq Helsinki) is the global home of design-driven brands for indoor and outdoor living. Our brands include Fiskars, Georg Jensen, Gerber, Iittala, Moomin Arabia, Royal Copenhagen, Waterford, and Wedgwood. Our brands are present in more than 100 countries and we have close to 450 own stores. We have approximately 7,000 employees and our global net sales in 2023 were EUR 1.1 billion.
We are driven by our common purpose: Pioneering design to make the everyday extraordinary. In 2024, we are celebrating our 375th anniversary. Since 1649, we have designed products of timeless, purposeful, and functional beauty, while driving innovation and sustainable growth.
Read more: fiskarsgroup.com
