The result of the consumer products company Fiskars clearly improved in July – September compared to the corresponding quarter last year.
The result was boosted by exceptionally good demand and the company's own cost-cutting measures.
- Fiskars Group's business developed well in the third quarter, and both net sales and comparable ebita clearly increased compared to the previous year.
Despite the challenging operating environment, our profitability improved especially towards the end of the quarter, Fiskars' interim CEO Sari Pohjonen said in the interim report.
In July – September, Fiskars' net sales increased to EUR 266.7 million from EUR 248.7 million a year ago.
At the same time, operating profit increased to EUR 35.6 million, compared to a profit of EUR 4.1 million a year earlier.
Comparable ebita increased from EUR 13.4 million to EUR 39.3 million.
- After a very volatile second quarter, we focused on improving performance, controlling costs and providing quality customer service, as well as providing an engaging experience for consumers.
We made good progress on our strategic priorities, as our own online store continued to grow in strong double-digit numbers in all business areas, Pohjonen said.
Profit before taxes increased to EUR 34.6 million from EUR 2.3 million.
Fiskars earned EUR 0.33 per share after EUR 0.04 a year ago.
This year, Fiskars implemented austerity measures aimed at proactively mitigating the impact of the coronavirus pandemic.
- Thanks to these quick and determined measures, our profitability has improved.
The majority of the austerity measures are temporary and as such cannot be extended for a longer period.
The difficult market situation for the Vita unit continued, as the number of customers in the stores remained low.
Net sales decreased by 5.6 per cent to EUR 111.0 million,
- Despite the wind, I am pleased that the online store grew and comparable EBITA rose.
The improvement in profitability was supported by cost savings and a more favorable product mix in sales.
The Terra business unit's net sales increased by 18.9 percent to EUR 113.1 million.
Comparable ebita increased from EUR 0.1 million to EUR 13.4 million.
Growth was supported by favorable weather conditions and a new distribution in the garden category.
The Crea business unit's net sales increased by 18.7 percent.
Comparable ebita increased from EUR 6.3 million to EUR 14.2 million.
Pohjonen said that the demand for the scissors and crafts category increased as people spent more time at home.
Uncertainty in demand towards the end of the year
On October 13, Fiskars announced the company's outlook for this year.
The company said it expects the Group's comparable ebita to grow from last year.
The last quarter of the year has typically been the most important for Fiskars, so there is still significant uncertainty towards the end of the year.
- The last quarter of the year has typically been the most seasonally important for the company, and the gift season in particular can bring risks and opportunities, depending on many factors such as movement restrictions, store closures and changes in consumer confidence.