Fiskars Corporation Financial Statement Release February 8, 2017 at 8:30 a.m. EET
FISKARS FINANCIAL STATEMENT RELEASE 2016: Significant increase in net sales and operating profit
This release is a summary of the Fiskars Corporation’s fourth quarter of 2016 and Financial Statement Release 2016 published today. The complete Financial Statement Release 2016 with tables is attached to this release as a pdf-file. It is also available at http://fiskarsgroup.com/investors/reports-pre...im-reports and on the company website at www.fiskarsgroup.com . Investors should not rely on summaries of our financial reports only, but should review the complete Financial Statement Release with tables.
Fourth quarter 2016 in brief:
- Net sales in line with the previous year at EUR 334.1 million (Q4 2015: 333.8) - Net sales increased by 5.1% on a comparable basis 1) - Operating profit increased to EUR 24.1 million (13.0) - Adjusted operating profit 2) increased by 96% to EUR 33.0 million (16.8) - Cash flow from operating activities before financial items and taxes increased to EUR 77.5 million (64.6) - Earnings per share (EPS) were EUR 0.51 (0.76). Operative earnings per share 3) amounted to EUR 0.23 (0.05)
January 1–December 31, 2016 in brief:
- Net sales increased by 8.8% to EUR 1,204.6 million (2015: 1,107.1) - Net sales increased by 1.6% on a comparable basis 4) - Operating profit increased to EUR 82.7 million (46.5) - Adjusted operating profit 2) increased by 44% to EUR 93.8 million (65.1) - Cash flow from operating activities before financial items and taxes increased to EUR 120.7 million (50.2) - Earnings per share (EPS) were EUR 0.78 (1.04). Operative earnings per share 3) amounted to EUR 0.56 (0.16) - Fiskars is transitioning to a biannual dividend distribution policy. The Board of Directors proposes a normal dividend of EUR 0.71 per share be paid in March 2017. To facilitate the transition to the new policy, the Board of Directors proposes a dividend of EUR 0.35 per share be paid in September 2017 - Outlook for 2017: Fiskars expects the Group’s net sales, excl. net sales of businesses divested in 2016 (2016: EUR 1,180 million) and adjusted EBITA (2016: EUR 107 million) to increase from the previous year - Fiskars has announced its long-term financial targets after the financial reporting period. The targets cover four areas: growth, profitability, capital structure, and dividend
President and CEO, Fiskars, Kari Kauniskangas: “The year 2016 was marked by strong progress on our strategic journey, with all-time high net sales and adjusted operating profit. This was a major achievement, especially as the integration of the watering business and the English & Crystal Living business are both on-going. I’m particularly proud of the performance in the fourth quarter, driven by the Scandinavian Living and Functional businesses. While our team was going through many changes, including the introduction of a new organizational structure, new leadership teams and plans to increase efficiencies, our net sales was in line with the previous year despite divestments, and the adjusted operating profit nearly doubled, amounting to EUR 33.0 million during the fourth quarter.
The turnaround of the watering business has progressed faster than originally planned and the business contributed positively to our earnings already in 2016. The English & Crystal Living business is being managed with a strong focus on improving working capital and operational efficiency. We continued to strengthen all of the key international brands and increase our consumer focus.
During 2016, we took several steps in developing Fiskars into a world-class consumer goods company with a family of iconic lifestyle brands. Fiskars is focusing on building businesses and brands that have the potential to grow globally, and in line with this target, we have divested businesses that do not fit into our strategy. In addition, we are continuously seeking ways to operate with more efficiency and agility, and we saw our efforts begin to generate results during the year.
I am pleased with our performance in 2016, and we will continue our strategic journey in 2017 towards our newly launched long-term financial targets. Our new structure will help us to leverage the full potential of our strong brands, build company-wide capabilities and increase speed and alignment. Above all, our focus will be in meeting and surpassing consumer expectations – making the everyday extraordinary – as we continue to invest in our key brands, Fiskars, Gerber, Iittala, Royal Copenhagen, Waterford, and Wedgwood.”
_________________________________
1) Using comparable exchange rates, excluding the divested boats business, the U.S. container gardening business and Spring USA 2) Adjustments include items such as restructuring costs, impairment or provisions charges and releases, integration related costs, and gain and loss from the sale of businesses 3) Operative earnings per share do not include net changes in the fair value of the investment portfolio and dividends received 4) Using comparable exchange rates, excluding the divested boats business, the U.S. container gardening business, the English & Crystal Living business in the first half of 2016 and Spring USA in Q4 2015
Group key figures
| EUR million | Q4 2016 | Q4 2015 | Change | 2016 | 2015 | Change | ||
| Net sales | 334.1 | 333.8 | 0.1% | 1,204.6 | 1,107.1 | 8.8% | ||
| Operating profit (EBIT) | 24.1 | 13.0 | 86% | 82.7 | 46.5 | 78% | ||
| Adjustments to operating profit 1) | -8.9 | -3.8 | -11.1 | -18.6 | ||||
| Adjusted operating profit | 33.0 | 16.8 | 96% | 93.8 | 65.1 | 44% | ||
| Adjusted EBITA | 36.3 | 20.0 | 82% | 107.1 | 75.7 | 42% | ||
| Net change in the fair value of investment portfolio | 28.4 | 72.7 | -61% | 6.1 | 56.1 | -89% | ||
| Profit before taxes | 55.6 | 83.2 | -33% | 92.8 | 125.5 | -26% | ||
| Profit for the period | 41.7 | 62.2 | -33% | 65.4 | 86.4 | -24% | ||
| Operative earnings/share, EUR 2) | 0.23 | 0.05 | 409% | 0.56 | 0.16 | 248% | ||
| Earnings/share, EUR | 0.51 | 0.76 | -33% | 0.78 | 1.04 | -25% | ||
| Equity per share, EUR | 14.91 | 14.54 | 3% | |||||
| Cash flow from operating activities before financial items and taxes | 77.5 | 64.6 | 20% | 120.7 | 50.2 | 141% | ||
| Equity ratio, % | 69% | 65% | ||||||
| Net gearing, % | 12% | 21% | ||||||
| Capital expenditure | 9.6 | 7.8 | 23% | 37.6 | 32.4 | 16% | ||
| Personnel (FTE), average | 7,933 | 8,334 | -5% | 8,000 | 6,416 | 25% | ||
1) The adjustments in Q4 2015 and Q4 2016, full year 2015 and 2016 are listed in a table on page 19 of this interim report. 2) Excluding net change in the fair value of the investment portfolio and dividends received. The comparison period has been restated to also exclude the exchange rate gains related to the investment portfolio
IMPACT OF NEW ESMA GUIDELINES
In accordance with the new guidelines on alternative performance measures issued by the European Securities and Markets Authority (ESMA) Fiskars Corporation has revised the terminology used in its financial reporting. Alternative Performance Measures (APM) are used to better reflect the operational business performance and to facilitate comparisons between financial periods. APMs should not be considered substitutes for measures of performance in accordance with the IFRS. As of Q1 2016, the term “non-recurring items” (NRI) has been changed to the term “adjustments to operating profit”, however the definition remains the same. As before, adjustments are transactions that are not related to recurring business operations, such as restructuring costs, impairment charges, integration related costs, and the gain or loss from the sale of businesses. Correspondingly, “adjusted EBITA” is calculated from adjusted EBIT by adding back amortization. The adjustments are listed in a table on page 19 of this interim report. Fiskars also uses the APM “operative EPS”, which is earnings per share (EPS) excluding the effects of the dividends from and the change in the fair value of the investment portfolio.
FISKARS CORPORATION Kari Kauniskangas President and CEO
Further information:
- President and CEO Kari Kauniskangas, tel. +358 204 39 5500
- COO and CFO Teemu Kangas-Kärki, tel. +358 204 39 5703
- Corporate Communications, tel. +358 204 39 5031, communications@fiskars.com
Analyst and media conference A presentation for analysts and media on the fourth quarter and full year results will be held on February 8, 2017 at 10:00 a.m. at the company’s headquarters, Fiskars Campus, Hämeentie 135 A, Helsinki. Presentation materials will be available at www.fiskarsgroup.com .
A conference call and live web cast for analysts and investors will be held on the same day at 11:30 a.m. (EET). The conference call will be held in English. To participate in the conference call please dial 5-10 minutes prior to the start of the conference. Questions can be asked in English after the presentation only through conference call connection.
International dial-in number: +44(0)1452555566 Denmark: 32727625 Finland: 09 23195187 France: 0176742428 Germany: 06922224918 Norway: 21563013 Sweden: 08 50336434 USA: 16315107498 Conference ID: 59278687 The presentation can be followed as a live webcast at: https://engage.vevent.com/rt/fiskars/index.jsp?seid=11
An on-demand version of the webcast will be available on the company website later the same day. Personal details gathered during the event will not be used for any other purpose.
Fiskars – Making the everyday extraordinary Fiskars serves consumers and customers around the world with a brand portfolio of globally recognized brands including Fiskars, Gerber, Iittala, Royal Copenhagen, Waterford, and Wedgwood.Building on our mission to create a family of iconic lifestyle brands, Fiskars’ vision is to create a positive, lasting impact on our quality of life. Please visit www.fiskarsgroup.com for more information.
