Fiskars sees increased net sales
Fiskars Corporation releases its first quarter 2016 report, delivering news of increased net sales and operating profit
The Fiskars Corporation has released its Q1 2016 report showing net sales has increased by 29 per cent to EU 296.2 million, up by 1.5 per cent on a comparable basis.
Operating profit has also increased to EUR 23.7 million even within such a mixed market environment.
“Fiskars achieved a good start to the year, as both net sales and operating profit grew. Comparable net sales also increased despite the challenging market conditions in some of our key markets, namely Finland and Japan,” says Kari Kauniskangas, president and CEO of Fiskars.
Fiskars demonstrated strong development in net sales and profit, driven by the Scandinavian Living business in Europe and Functional business across all regions.
Kari says: “I was particularly pleased with our progress in the Scandinavian Living business in Europe, driven by the Royal Copenhagen and Rörstrand brands. In addition, Iittala launched a unique collaboration collection, Iittala X Issey Miyake, with the aim of further increasing brand awareness in major cities around the world. The launch was implemented with a true omni-channel approach and attracted a significant amount of attention among current and new consumers across the globe.”
Led by the Fiskars brand, the Functional business performed very well in the Americas, with increased operating profit year-on-year. Net sales in the watering business were down due to exits from several unfavorable sales agreements. The turnaround of the watering business is progressing according to plan, and we are leveraging our expertise in the garden category.
Kari continues: “As expected, English & Crystal Living net sales decreased from the comparison period. We are progressing with the integration of the business, where we will benefit from our successful integration track record with Iittala and Royal Copenhagen. Building on the iconic brands – Waterford, Wedgwood, Royal Albert and Royal Doulton – as well as our key Scandinavian Living brands – Iittala, Royal Copenhagen and Rörstrand – we will focus on creating a world-leading luxury and premium Living business delivering sustained profitable growth.
During the first quarter, we completed the divestments of the boats and the U.S. container gardening businesses, allowing us to better focus on our world-leading consumer brands.”
The outlook for 2016 stays unchanged with Fiskars expecting the Group’s 2016 net sales and adjusted operating profit to increase from the previous year.
“We expect the business environment to remain challenging especially in Asia and some European countries. Our trade customers continue to face structural changes across the globe. We are meeting these challenges head-on and will focus on leveraging the home and garden trend currently gaining momentum in several markets, targeting profitable growth in an omni-channel environment, working together with our trade customers and building consistent consumer experiences at every touchpoint,” concludes Kari.