Despite facing tough comps, Fiskars grew its group sales by 10% y-o-y, to EUR 333m. The growth was broad based among the business segments (Vita +12%, Terra +10%, Crea +6%). Terra was the shining star, however: adj. growth after the divestment of the North American business was 20%, supported by double-digit growth in Gardening and Landscaping. The gross margin remains a strength for Fiskars: gross profit showed higher growth than net sales (12% vs 10%). We think this is clear evidence of the company’s resilience against surging cost inflation, which increases our confidence. The positive trend was further reflected in adj. EBIT, which grew by 11% y-o-y. Reported EBIT was weighed down by one-offs from write-downs and provisions related to the cessation of the Russian operations (EUR ~10m), however. Although adj. EBIT increased among all segments the main contributor on the group level was Terra, which increased its adj. EBIT by 14% y-o-y, for an impressive margin of 21%.
FY’22 outlook unchanged
Fiskars’ FY’22 guidance is unchanged: the company expects adj. EBIT of >EUR 154m. Although visibility remains somewhat limited, Q1 improved our confidence in management’s ability to deliver on this. As such, we expect Fiskars to continue successfully executing on its transformation levers (commercial excellence, DTC, the U.S., and China), although short-term volatility could occur. On the back of the above and the Q1 deviations, coupled with strong demand and Fiskars being able to meet it, we raise our ’22e-’24e sales and adj. EBIT estimates by 4% and 10%, respectively.
Share trading at 10.8x-9x adj. EV/EBIT for ’22e-’24e
Following our estimate revisions we raise our fair value range to EUR 20-32 (19-29) per share.
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