Fiskars Group - Raising guidance after strong Q2

Yet another guidance upgrade Q2 trading has been strong Guidance raised by ~9%, new midpoint ~5% above cons. 2021 continues to be a strong home improvement year On 23 June, Fiskars Group upgraded its full-year guidance for adj. EBITA. This is due to strong trading during Q2, which is stated to have been above expectations.

On the back of this, the company raises its adj. EBITA guidance from the previous EUR 130-145m to EUR 140-160m, lifting the mid-point of guidance by some 9%. We note that the company has increased the range of the guidance from EUR 15m to EUR 20m, pointing towards a greater uncertainty for H2’21.

Continuing to mitigate cost and supply chain issues Fiskars continues to mention the ongoing issues with increasing raw material costs and supply chain difficulties. The company states that while these factors have been mitigated, they continue to have an impact. Fiskars continues to show the pricing power of its strong brands, showing the continuous relevance of the brand portfolio.

While the circumstances in terms of strong end-markets likely have been a supporting factor to the ability of pricing initiatives, we view this as a strong sign going forward as the turnaround story continues. Mid-point of guidance ~5% above cons. We have now seen both Fiskars and Kesko upgrade guidance during the last weeks, strengthening the view that 2021 will continue to be a strong home improvement year.

However, in terms of estimates, we note that cons. already was in the high-end of the previous guidance. The mid-point of the new guidance is c.

5% above cons., and we expect estimates to come up by low single-digits for ‘22e-‘23e..