Fiskars Corporation
Financial Statement Release
February 6, 2025 at 8:30 a.m. (EET)
Fiskars Corporation's Financial Statement Release 2024
Strong finish to the year in challenging market conditions - Full-year comparable EBIT increased slightly, despite lower volumes
This release is a summary of Fiskars Corporation's Financial Statement Release 2024 published today. The complete Financial Statement Release with tables is attached to this release as a pdf-file. It is also available at https://fiskarsgroup.com/investors/reports-and-presentations/annual-and-interim-reports/ and on the Group's website at www.fiskarsgroup.com. Investors should not rely on summaries of financial reports only, but should review the complete reports with tables.
October-December 2024 in brief:
- Comparable net sales1 decreased by 2.4% to EUR 337.2 million (Q4 2023: 345.5). Reported net sales decreased by 2.5% to EUR 337.2 million (345.8).
- Comparable EBIT2 increased to EUR 42.9 million (37.7), or 12.7% (10.9%) of net sales. EBIT decreased to EUR 30.9 million (34.0).
- Cash flow from operating activities before financial items and taxes decreased to EUR 88.8 million (101.4).
- Free cash flow decreased to EUR 69.4 million (77.5).
- Comparable earnings per share were EUR 0.57 (0.40). Earnings per share (EPS) were EUR 0.45 (0.35).
January-December 2024 in brief:
- Comparable net sales1 decreased by 5.0% to EUR 1,018.1 million (2023: 1,071.4). Reported net sales increased by 2.4% to EUR 1,157.1 million (1,129.8).
- Comparable EBIT2 increased to EUR 111.4 million (110.3), or 9.6% (9.8%) of net sales. EBIT decreased to EUR 37.1 million (98.9).
- Cash flow from operating activities before financial items and taxes decreased to EUR 145.4 million (247.5).
- Free cash flow decreased to EUR 81.7 million (184.9).
- Comparable earnings per share were EUR 1.07 (0.99). Earnings per share (EPS) were EUR 0.33 (0.86).
1) Comparable net sales exclude the impact of exchange rates, acquisitions and divestments.
2) Items affecting comparability in EBIT include items such as restructuring costs, impairment or provisions charges and releases, acquisition-related costs, and gains and losses from the sale of businesses. Comparable EBIT is not adjusted to exclude the EBIT contribution of acquisitions/ divestments/ disposals.
Proposal for the distribution of dividend
The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.84 per share shall be paid for the financial period that ended on December 31, 2024. The dividend shall be paid in two instalments of EUR 0.42 per share each.
Guidance for 2025
Fiskars Corporation expects comparable EBIT to improve from the 2024 level (2024: EUR 111.4 million).
Assumptions behind the guidance
The operating environment is expected to remain challenging and impact demand in 2025. Visibility in the market remains limited, as uncertainties in the global economy persist.
Further gross margin improvement is expected to support EBIT in 2025. The savings from completed organizational changes are also expected to continue supporting EBIT improvement together with other further efficiency improvement actions.
The Group's EBIT generation is seasonally tilted towards the end of the year, highlighting the importance of the second half and especially the fourth quarter. During this period, the development of Business Area Vita's volumes will play a significant role.
President and CEO, Fiskars Group, Nathalie Ahlström:
"We had a strong finish to the year as we delivered an all-time high comparable EBIT for a fourth quarter, EUR 43 million. The increase was driven by a clear improvement in gross margin and continued prudent cost management. This is testament to our teams' resilience and hard work in a challenging operating environment globally. The full-year comparable EBIT was EUR 111 million, increasing slightly from the previous year. This increase was predominantly driven by Business Area Fiskars.
In 2024, our comparable net sales decreased by 5% as low consumer confidence affected demand. Our reported net sales, which include Georg Jensen, increased by 2%. We were able to deliver improved profitability despite lower volumes especially in the fourth quarter when we delivered an all-time high gross margin, increasing by 260 bps from the previous year. I am also happy to share that our full-year gross margin reached 48.8%, placing us more than well on track with our ambition of achieving a gross margin of over 49% in 2025.
Another highlight was the good work done regarding our leverage target. We ended the year with our net debt/EBITDA at 2.55x, which is just shy of our target level of 2.5x. This was supported by our systematic cash flow management and strong cash flow in the fourth quarter.
In the fourth quarter, we continued our transformation and announced plans to separate our Business Areas Fiskars and Vita into operationally independent companies to accelerate their different strategic growth opportunities and expedite serving their investment needs. These plans have been exceptionally well received. Internally, our employees have truly embraced the possibility to take ownership of market opportunities specific to their respective brands. Externally, this way of operating offers increased transparency and measurability, for example.
Looking at Business Area Vita, its comparable net sales in 2024 decreased by 6%, whereas its reported net sales increased by 9% to EUR 605 million. Denmark is now clearly the largest country for BA Vita and the second largest at the Group level after the U.S. following the Georg Jensen acquisition. As a highlight, the Royal Copenhagen and Moomin Arabia brands delivered good growth, driven by strong commercial execution, especially at the end of the year. BA Vita's comparable EBIT decreased to EUR 48 million due to lower volumes.
Business Area Fiskars' 2024 net sales decreased by 4% to EUR 547 million due to low consumer confidence and retailer customers' cautious inventory management. Despite the lower overall volumes, a great example of how we are taking growth into our own hands is how the Fiskars brand managed to expand its distribution in Germany - our teams delivered exceptionally strong growth in this flat market in the fourth quarter. BA Fiskars succeeded in increasing its comparable EBIT to EUR 77 million by improving its gross margin and executing prudent cost management, especially in the supply chain.
In line with our strategy, we continue building on growth fundamentals which will elevate us once the market environment improves. Our transformation levers - commercial excellence, Direct-to-Consumer (DTC), the U.S., and China, play an integral role in delivering our ambitions. Looking at 2024, our gross margin, which is our key performance indicator for commercial excellence, increased by 200 bps. Comparable DTC sales, comprising our approximately 500 stores and approximately 60 e-commerce sites, were flattish, decreasing by 1%, partially due to a decline in own e-commerce in China. Total comparable net sales in China were resilient, increasing by 1%. In the U.S., comparable net sales decreased by 7% as retailers' cautious inventory management continued to affect demand.
In 2024, we made good progress in sustainability. We were awarded multiple international and local recognitions for our ESG work, such as the Platinum level sustainability rating from EcoVadis. Another highlight was the progress we made in our circularity target - at the end of 2024, we were already at 26%, almost doubling from previous year's 14%.
I would like to thank all our employees, customers and partners for 2024, which marked the 375th anniversary of Fiskars. In 2025, we yet again get to celebrate other important milestones, as Royal Copenhagen turns 250 years, and Moomin celebrates its 80th anniversary. These celebrations will feature exciting consumer events and special anniversary collectibles.
Looking at 2025, the operating environment is expected to remain challenging and impact demand. We are expecting to improve comparable EBIT from the 2024 level with the Group's EBIT generation seasonally tilted towards the end of the year.
During the year, we will invest in demand creation to accelerate our distribution and category expansion. For example, Vita will continue to focus on surrounding the consumer through its product offering, while Fiskars will invest significantly in innovation.
Throughout 2024, we focused on making a difference with the actions in our own hands. By strengthening our foundation, we aim to reignite growth and improve our performance in the long run."
Group key figures
| EUR million (unless otherwise noted) | Q4 2024 | Q4 2023 | Change | 2024 | 2023 | Change |
| Net sales | 337.2 | 345.8 | -2.5% | 1,157.1 | 1,129.8 | 2.4% |
| Comparable net sales 1) | 337.2 | 345.5 | -2.4% | 1,018.1 | 1,071.4 | -5.0% |
| EBIT | 30.9 | 34.0 | -9.0% | 37.1 | 98.9 | -62.4% |
| Items affecting comparability in EBIT2) | 12.0 | 3.7 | 74.3 | 11.4 | ||
| Comparable EBIT3) | 42.9 | 37.7 | 13.9% | 111.4 | 110.3 | 1.1% |
| Comparable EBIT margin | 12.7% | 10.9% | 9.6% | 9.8% | ||
| EBITDA | 51.6 | 53.9 | -4.2% | 119.6 | 164.9 | -27.5% |
| Comparable EBITDA4) | 63.1 | 57.6 | 9.6% | 193.5 | 175.8 | 10.0% |
| Profit before taxes | 26.9 | 25.0 | 7.5% | 18.5 | 79.7 | -76.8% |
| Profit for the period | 36.8 | 28.0 | 31.5% | 27.3 | 70.0 | -61.0% |
| Earnings per share, EUR | 0.45 | 0.35 | 31.0% | 0.33 | 0.86 | -61.3% |
| Comparable earnings per share, EUR | 0.57 | 0.40 | 43.8% | 1.07 | 0.99 | 7.7% |
| Cash earnings per share (CEPS), EUR | 0.85 | 1.11 | -23.3% | 1.39 | 2.68 | -48.2% |
| Equity per share, EUR | 9.80 | 10.15 | -3.3% | |||
| Cash flow from operating activities before financial items and taxes | 88.8 | 101.4 | -12.4% | 145.4 | 247.5 | -41.3% |
| Free cash flow | 69.4 | 77.5 | -10.4% | 81.7 | 184.9 | -55.8% |
| Free cash flow/comparable net profit (LTM), % | 94.8% | 231.0% | ||||
| Net debt | 493.9 | 446.7 | 10.6% | |||
| Net debt/comparable EBITDA (LTM), ratio | 2.55 | 2.54 | 0.5% | |||
| Equity ratio, % | 47% | 47% | ||||
| Net gearing, % | 62% | 54% | ||||
| Capital expenditure | 15.2 | 18.4 | -17.1% | 52.5 | 50.8 | 3.4% |
| Personnel (FTE), average | 6,364 | 6,714 | -5.2% | 6,446 | 6,133 | 5.1% |
1) Comparable net sales exclude the impact of exchange rates, acquisitions and divestments.
2) In Q4 2024, items affecting comparability were mainly related to organizational changes.
3) EBIT excluding items affecting comparability. Comparable EBIT is not adjusted to exclude the EBIT contribution of acquisitions/divestments/disposals.
4) EBITDA excluding items affecting comparability. Comparable EBITDA is not adjusted to exclude the EBIT contribution of acquisitions/divestments/disposals.
FISKARS CORPORATION
Nathalie Ahlström
President and CEO
Webcast
A webcast on the fourth quarter and full year results will be held on February 6, 2025 at 11:00 a.m. (EET). It will be held in English and can be followed at https://fiskars.events.inderes.com/q4-2024.
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.
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. Since 1649, we have designed products of timeless, purposeful, and functional beauty, while driving innovation and sustainable growth. In 2024, Fiskars Group's global net sales were EUR 1.2 billion and we had close to 7,000 employees. We have two Business Areas (BA), Vita and Fiskars.
BA 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, Iittala and Waterford. In 2024, BA Vita's reported net sales were EUR 605 million. Already 50% of BA Vita's net sales comes from direct-to-consumer sales, comprising approximately 500 stores and approximately 60 e-commerce sites.
BA Fiskars consists of the gardening and outdoor categories, in addition to the scissors and creating, as well as cooking categories. The brands include Fiskars and Gerber. In 2024, BA Fiskars' net sales were EUR 547 million.
Read more: fiskarsgroup.com
