The Q2 report was an underlying beat in the teens

We raise our adj. EBITA estimates by 5-3% for ‘21e-‘23e

Value range increased to EUR 14-23 per share

Earnings growth momentum continuing
Fiskars’ Q2 report was strong, with adj. EBITA coming in 28% ahead of our expectations and 25% above consensus. Sales grew 14% organically to EUR 307m, 6% ahead of our expectations and 4% ahead of consensus. On a segment level Vita was the shining star, growing 42% organically y-o-y and 14% vs. 2019, with a significantly improved margin of 12%. However, there were a lot of moving parts. Whereas Vita’s adj. EBITA was more than double our expectations, Terra came in below our expectations. We furthermore note that the Other segment delivered a positive adj. EBITA, compared to the usual negative EUR 3-4m per quarter. The company said that this is a timing difference during the year and explains almost half of the Q2’21 beat. On the back of the outperformance for Vita, we raise our ‘21e-‘23e sales and adj. EBITA estimates by 2-1% and 5-3%, respectively. The company also gave an update on its savings programmes, expecting the Vita-related programme to be finished on time (Q4’21) at a cost of EUR 5m less than expected, while the other programme could see a one-quarter delay to Q1’22.

More upside than downside risk to the guidance
After the strong Q2 report, especially for Vita, the downside risk to the full-year guidance seems to be limited. With Vita being the segment with the momentum, earnings look set to hold up well during H2. While both Terra and Crea are likely to be more hampered by raw material inflation and freight cost increases, aspects that are worrying for the performance in H2, Vita’s earnings contribution will increase during the second part of the year. At EUR 157m, we are currently in the top end of the adj. EBITA guidance range for 2021 of EUR 140-160m, which suggests that the risk is on the upside.

Value range lifted to EUR 14-23 (13-22) per share
On our updated estimates,
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