Copyright © Inderes 2011 - present. All rights reserved.
  • Latest
  • Markets
    • Stock Comparison
    • Financial Calendar
    • Dividends Calendar
    • Research
    • Articles
  • inderesTV
  • Portfolio
  • Forum
  • Q&A
  • About Us
    • Our Coverage
    • Team
Third party research

Fiskars: Simplification of organisational structure continues - Nordea

Fiskars

This is a third party research report and does not necessarily reflect our views or values

Download report (PDF)
This morning, Fiskars announced its plans to simplify its organizational structure to speed up the continued transformation of the company and to increase efficiency. The company aims to combine Business areas Terra and Crea into one business area, Fiskars. Current business area Vita would continue to be organized as it is.

Furthermore, the company aims to simplify its global supply chain organization to increase efficiency and ensure competitiveness. The planned changes are expected to lead to a net reduction of approximately 400 roles (~7% of workforce) globally while Fiskars targets approximately EUR 25m cost savings, of which majority would realize during 2024. One-off costs related to planned changes are expected to be around EUR 6m, recorded in Q4 2023. Now announced cost savings come on top of the EUR 30m cost savings announced in January 2023. Following the planned change, Fiskars plans to revise its reporting structure. As of Q4 2023, reporting segments would be Business areas Vita and Fiskars and segment Other.

In addition, the company makes changes to its leadership team as Executive Vice President for Business area Terra, will leave the company, and Chief Sales officer Americas and President Americas, is stepping out of the Leadership Team.

Furthermore, Fiskars will continue to have direct-to-consumer organization within Business area Vita, which we view as logical step as majority of the DTC sales are generated in Vita, and as we believe DTC sales to be more challenging to ramp-up within other business areas due to the product range.

We view simplification as a logical step which should improve Fiskars brand recognition and improve efficiency as sourcing and sales channels of Terra and Crea are similar. In addition, given the challenging market conditions, we believe the company has been running behind its ambitions regarding both top line and profitability. We have anticipated market conditions to improve in 2024, while now announced cost savings should reduce estimate risks related to 2024.

Fiskars will host a CMD event on 2 November, where we expect it to present more tangible bridge towards targeted mid-teens EBIT margin by 2025. Refinitiv consensus has been expecting 12.6% EBIT margin by 2025. We have been 3% below consensus on adjusted EBIT for 2023E, while we have been 8% above consensus for 2024E and 3% above for 2025E.
Find us on social media
  • Inderes Forum
  • Youtube
  • Instagram
  • Facebook
  • X (Twitter)
Get in touch
  • info@inderes.se
  • +46 8 411 43 80
  • Vattugatan 17, 5tr
    111 52 Stockholm
Inderes
  • About us
  • Our team
  • Careers
  • Inderes as an investment
  • Services for listed companies
Our platform
  • FAQ
  • Terms of service
  • Privacy policy
  • Disclaimer
Inderes’ Disclaimer can be found here. Detailed information about each share actively monitored by Inderes is available on the company-specific pages on Inderes’ website. © Inderes Oyj. All rights reserved.