Fiskars Group - Upgrading guidance once again

Pre-announcing Q1 figures Sales EUR 302m (Q1’20 256m) adj. EBITA 49m (19m) Second FY’21 guidance upgrade for the year Q1 adj. EBITA in line with Q4 This evening, Fiskars came with its second positive trading update for the year. This is after exceptionally strong Q1 trading, where the company posted an adj.

EBITA of 49m, a flattish development q-o-q and a 159% increase y-o-y. This is a very strong performance, as the company normally sees a large share of its FY earnings in the fourth quarter as an effect of the gifting season. Margins and demand continue to be at high levels.

While facing soft comps, we believe that all three segments are performing strongly. Vita is looking to continue its strong momentum from the Q4 report, where it has started to show organic growth again after a few years of negative development. All-in-all, sales grew by 18% y-o-y in Q1, with an adj.

EBITA margin of 16%. Q2 looking stellar The company also published its second FY guidance upgrade for the year. The company now expects an adj.

EBITA of EUR 130m-145m, from previously being EUR 120m-137m. With 2020 adj. EBITA coming in at EUR 137m, the company is now guiding for a flat adj.

EBITA development y-o-y in 2021. The mid-point of the new guidance is c. 20% above our FY’21 estimates after the Q4’20 report.

Our previous short-term concerns regarding raw mats and freight costs have now been proven wrong. Furthermore, we believe the timing of the guidance upgrade points to management being confident in its visibility in Q2, a strong sign for both Fiskars and the industry in general. Guidance upgrade of c.

7% for 2021 Using the mid-point of both the old and new guidance, we get to the FY guidance upgrade being a 7% raise for 2021. For ‘22e-‘23e, however, we expect consensus to make smaller changes on the back of the guidance hike. 2021 is looking to be a year on par with 2020, but we note that the cost base (restructuring programs aside) should normalise over time, which should le.