Fiskars (FSKRS) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered improved profitability and an all-time high gross margin of 48.1%, despite lower volumes and challenging market conditions; comparable EBIT rose 35.6% to €24.3M.

• The Brands First transformation was completed, splitting operations into two independent companies, each with its own CEO, to drive speed and impact.

• Guidance for 2024 remains unchanged, with comparable EBIT expected slightly above 2023 (€110.3M), as market headwinds and wage inflation persist.

Financial highlights

• Q3 2024 reported net sales rose 6.1% to €255.9M, driven by the Georg Jensen acquisition, while comparable net sales declined 7.3% to €223.9M.

• Comparable EBIT increased to €24.3M (9.5% margin), up from €17.9M (7.4% margin) in Q3 2023.

• Gross margin reached a Q3 record of 48.1% (up from 47.2% last year); year-to-date gross margin at 48.5%.

• Free cash flow was negative €16.9M, mainly due to trade payables phasing.

• Comparable EPS was €0.16 (up from €0.15); reported EPS was €-0.07 (down from €0.11).

Outlook and guidance

• 2024 comparable EBIT expected slightly above 2023 (€110.3M), with EBIT generation weighted toward Q4 due to Georg Jensen acquisition and seasonal patterns.

• Q4 is expected to be the seasonally strongest for cash flow; net debt/EBITDA anticipated to return to target level.

• Efficiency program savings and further cost improvements are expected to support EBIT, partially offset by wage inflation.

• Market uncertainty and limited visibility persist, with demand risks in key markets.

• Vita's Q4 volumes are crucial due to seasonal patterns.