fiskars group q1/2014 · page 2 fiskars q1 2014 net sales 184.1 meur,-3% net sales impact from...
TRANSCRIPT
Fiskars Group
Q1/2014 1.1. – 31.3.2014 Helsinki, May 6, 2014
Q1 2014: Challenging start to the year
Page 2 Fiskars Q1 2014
Net sales 184.1 MEUR,-3%
Net sales impact from currencies
– 4.9 MEUR
Outlook for 2014: FY sales at 2013
levels, EBIT excl. NRI at 2013 levels or
slightly below
EBIT excl. NRI 12.8 MEUR, -23 %
Soft performance in Outdoor
Net Sales and EBIT in Q1 2014 Fiskars Group
EBIT by quarter, MEUR
190,4
217,6
177,9
212,6
184,1
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
14,0%
0
25
50
75
100
125
150
175
200
225
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Net sales by quarter, MEUR
16,6
27,8
15,4 14,0 12,8
-2,1 -1,7
-6,6 -2,3
-4,6
-10
-5
0
5
10
15
20
25
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
EBIT excluding non-recurring items
Non-recurring items
EBIT excl.
NRI % 8,7% 12,8% 8,6% 6,6% 6,9%
- 3 %
Cn -1 %
Fiskars Q1 2014 Page 3
Net sales development bridge
Page 4
MEUR
Divested Garden
Business
190,4
Exchange
rate effect
Home
184,1
Outdoor
-4,9
Garden
Fiskars Q1 2014
Q1 2013 Q1 2014
Europe & Asia-Pacific and Americas in Q1 2014
134,7 149,6
119,8
160,1
133,7
0,0%
4,0%
8,0%
12,0%
16,0%
20,0%
0
40
80
120
160
200
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Europe & Asia Pacific Net sales and EBIT % by quarter, MEUR
EBIT excl. NRI %
7,5% 12,2% 8,4% 8,9% 7,0%
Europe & Asia Pacific
• Net sales 133.7 MEUR, -1 %, cn +1 %
• EBIT excl. NRI 9.4 MEUR, -7 %
• Sales impacted by currencies, sale of UK
pottery business and availability issues
• Increased marketing spending and
depreciation and amortization
Fiskars Q1 2014 Page 5
58,0 71,3
60,7 55,1 51,8
0,0%
4,0%
8,0%
12,0%
16,0%
20,0%
0
40
80
120
160
200
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Americas Net sales and EBIT % by quarter, MEUR
EBIT excl. NRI %
15,4% 16,5% 12,5% 5,8% 10,3%
Americas
• Net sales 51.8 MEUR, -11 %
• EBIT 5.3 MEUR, -41 %
• Decreased sales in Outdoor
Page 6 Fiskars Q1 2014
Q1 2014 Home
Home, Quarterly View
Fiskars Q1 2014 Page 7
• Net sales 79.3 MEUR, +2%, cn +4 %
• In Europe, product availability issues curbed growth
• Good performance for Royal Copenhagen continued
• Earlier, strong launches for license, good performance for core Fiskars kitchen products
• In the Americas, slow start for School, office and craft
62,8 65,1 78,0 79,3
0,0
20,0
40,0
60,0
80,0
100,0
120,0
140,0
Q1 2011
Q1 2012
Q1 2013
Q1 2014
Q2 2011
Q2 2012
Q2 2013
Q2 2014
Q3 2011
Q3 2012
Q3 2013
Q3 2014
Q4 2011
Q4 2012
Q4 2013
Q4 2014
Net Sales, MEUR
Page 8 Fiskars Q1 2014
Q1 2014 Garden
Garden Quarterly View
Fiskars Q1 2014 Page 9
• Net sales 80.0 MEUR, -3 %, cn -0 %
• In Europe, UK pottery business divested at the end of 2013, availability issues dampened
growth
• Good sell-in for European spring campaigns
• Cold weather and inventory management at trade impacted sales in the Americas
93,2 91,2 82,5 80,0
0,0
10,0
20,0
30,0
40,0
50,0
60,0
70,0
80,0
90,0
100,0
Q1 2011
Q1 2012
Q1 2013
Q1 2014
Q2 2011
Q2 2012
Q2 2013
Q2 2014
Q3 2011
Q3 2012
Q3 2013
Q3 2014
Q4 2011
Q4 2012
Q4 2013
Q4 2014
Net Sales, MEUR
Page 10 Fiskars Q1 2014
Q1 2014 Outdoor
Outdoor Quarterly View
Fiskars Q1 2014 Page 11
• Net sales 23.4 MEUR, -19.0 %, cn -17.0
• In Europe & Asia-Pacific, Gerber sales impacted by adjustments
• Boat sales shifted to smaller models
• In the Americas, weak Outdoor commercial sales
32,1 30,6 28,9 23,4
0,0
5,0
10,0
15,0
20,0
25,0
30,0
35,0
40,0
45,0
Q1 2011
Q1 2012
Q1 2013
Q1 2014
Q2 2011
Q2 2012
Q2 2013
Q2 2014
Q3 2011
Q3 2012
Q3 2013
Q3 2014
Q4 2011
Q4 2012
Q4 2013
Q4 2014
Net Sales, MEUR
Q1 Spotlight: EMEA transformation programs
Page 12 Fiskars Q1 2014
Two programs to build a solid platform for growth
5 year platform program
• Investments decreasing,
depreciations on the increase
• Largest single implementation in
September affected sales and
efficiency in Q4 2013
• Impacts on Home products
availability in Q1 2014
• To mitigate effects of future
implementations, implementation
period extended to 2016
EMEA 2015 restructuring program
• EUR 4.2 million of total EUR 25-
30 million restructuring costs
recorded in Q1 2014
• Planned restructuring of Fiskars
Italy
• Close local manufacturing and
warehousing
• Discontinue professional knife
business
• Consolidation of glass
manufacturing in Iittala completed
• Some projects moved to 2015
from 2014
Page 13 Fiskars Q1 2014
Q1 Financials:
Page 14 Fiskars Q1 2014
Cash flow and debt Q1 2014, MEUR
118 123
110
88
120
0
20
40
60
80
100
120
140
Working Capital
206
201
186
153
206
0
50
100
150
200
250
Net debt
Fiskars Q1 2014 Page 15
10,1 10,3
8,6 8,5
5,4
0,0
2,0
4,0
6,0
8,0
10,0
12,0
Capital expenditure
2
15
23
41
7
0
5
10
15
20
25
30
35
40
45
Cash flow from operating activities
Key ratios Q1 2014
7,06 7,28 7,42 7,71
7,20
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
9,0
Equity per Share
55 57
59 61
57
0
10
20
30
40
50
60
70
Equity ratio, %
36
34 31
24
35
0
5
10
15
20
25
30
35
40
Gearing, %
Fiskars Q1 2014 Page 16
0,25
0,33
0,16
0,40
0,14
0,00
0,05
0,10
0,15
0,20
0,25
0,30
0,35
0,40
0,45
EPS*
Outlook for 2014
• After a challenging first quarter, action plans are formulated to drive
sales and to adjust cost levels.
• During the rest of the year, currency rates could have a significant effect
on Fiskars full-year sales.
• To accelerate growth, the company plans to increase spending on brand
recognition, strengthening the newly established Asia-Pacific sales
region, and on new category expansion ventures.
• Annual investment related to the five-year platform program has started
to decrease, whereas depreciation and amortization are increasing.
• Group’s full-year net sales for 2014 are expected to be at 2013 levels
and operating profit excluding non-recurring items to be at or slightly
below 2013 levels.
Page 17 Fiskars Q1 2014
Fiskars 365 – celebrating centuries of
pride, passion and design. Every day.