Fiskars Corporation’s interim report shows positive development in comparable EBITA and cash flow due to the company’s investments in growth initiatives
Fiskars Corporation has released its January-March 2019 interim report. For the first quarter of 2019, the report states, net sales increased by 1 per cent to EUR 268.6 million, though comparable net sales saw a decrease by 1.4 per cent. The report shows positive development in comparable EBITA, with an increase of 9.9 per cent.
The outlook for Fiskars Group for 2019, therefore, states the report, expects the comparable net sales and comparable EBITA to be at the same level as in 2018.
This outlook is influenced by the company’s investments in growth initiatives that are expected to add sustainable value in the long-term.
In addition, there are material risks relating to changes in the operating environment, for example, Brexit and the US tariffs. An unfavourable outcome of these risks might have a significant impact on the comparable net sales and comparable EBITA. Furthermore, fluctuations in currency rates might also have a considerable impact on comparable EBITA.
President and CEO, Fiskars Group, Jaana Tuominen, says: “Solid net sales development in Europe in the Functional segment drove our improvements in performance during the first quarter of 2019. I was also pleased with the Living segment’s net sales growth in Asia. The unfavourable weather conditions and slow start to the gardening season in the US adversely impacted our net sales.”
Regarding Fiskars Living, Jaana says: “We are making progress with the Living transformation programme, in line with the plans. I am confident that we can strengthen our brands, increase efficiency, and accelerate long-term strategic development as we execute the programme. We continued to deliver on our strategy to focus on branded consumer goods and announced the sale of the Leborgne business, which has not been part of our core portfolio.”
Jaana adds: “As we have said earlier, we are investing in growth initiatives that are expected to add sustainable value in the long-term. Net sales in the direct e-commerce channel has grown during the past few quarters and this growth also continued in the first quarter. Ecommerce is one of the areas where we will improve our competitiveness, both in terms of our direct ecommerce as well as in supporting our trade partners.
“Looking forward to the rest of 2019, we see good momentum as we move into the important quarters to come. I expect our sales performance to improve as we leverage the pockets of growth that are available in our markets. Our pursuit of growth is supported by our strong brands, trade relationships and presence across the globe.”