Tikkurila''s Business Review for January-September 2016
(Thomson Reuters ONE) -
Tikkurila Oyj
Stock Exchange Release
October 28, 2016 at 9:00 a.m. (CET+1)
Tikkurila''s Business Review for January-September 2016
Tikkurila''s revenue for the third quarter decreased by 5.9 percent to EUR 158.0
million (7-9/2015: EUR 168.0 million). Adjusted operating profit totaled EUR
23.7 (26.0) million, i.e. 15.0 (15.5) percent of revenue.
"The third quarter was disappointing after the strong second quarter. Sales
volumes decreased in Russia and Finland during the third quarter. In Russia, the
markets were weighed down by low purchasing power among consumers, while the wet
summer reduced demand for paint in Finland. In addition, unfavorable changes in
the exchange rates and divestments had a negative impact on revenue.
Profitability was weakened throughout the Group by the decline in revenue and by
higher sales and marketing investments in SBU West. In SBU East, profitability
improved compared to the comparison period due to the more favorable development
of the ruble.
Our goal is to increase our presence in the new building market and industrial
coatings business. We will adjust costs to reflect the market conditions.
However, we will continue our strong efforts in sales and marketing activities,
and also boost product development," says Erkki Järvinen, President and CEO.
Revenue for January-September decreased by 2.7 percent to EUR 467.8 million (1-
9/2015: EUR 480.7 million). Adjusted operating profit totaled EUR 64.6 (70.0)
million, i.e. 13.8 (14.6) percent of revenue.
Key figures
(EUR million) 7-9/2016 7-9/2015 Change % 1-9/2016 1-9/2015 Change %
--------------------------------------------------------------------------------
Group data
Revenue 158.0 168.0 -5.9% 467.8 480.7 -2.7%
Adjusted operating profit 23.7 26.0 -9.1% 64.6 70.0 -7.7%
Adjusted operating profit 15.0% 15.5%
margin, % 13.8% 14.6%
EPS, EUR 0.43 0.37 16.3% 1.19 1.19 0.3%
Net Interest-bearing
liabilities 64.1 46.8 37.0%
(at period-end) 64.1 46.8 37.0%
Total equity (at period- 211.5 208.3 1.5% 211.5 208.3
end) 1.5%
Total assets (at period- 451.0 452.5 -0.3% 451.0 452.5
end) -0.3%
Segment data
SBU West revenue 104.9 108.7 -3.5% 328.0 327.2 0.2%
SBU West adjusted 18.5 21.8 -15.2%
operating profit 55.0 59.0 -6.8%
SBU East revenue 53.2 59.3 -10.3% 139.8 153.5 -8.9%
SBU East adjusted 6.1 5.0 21.3%
operating profit 13.1 14.9 -12.7%
Revenue by country
Sweden 39.4 41.5 -5.0% 124.2 123.5 0.6%
Russia 37.5 40.6 -7.6% 94.6 105.5 -10.4%
Finland 23.2 25.3 -8.4% 85.3 86.0 -0.7%
Poland 20.8 20.1 3.7% 57.1 56.0 1.9%
Financial development in July-September 2016
Tikkurila Group''s revenue decreased in the third quarter of 2016 due to
divestments, weak foreign exchange rates and lower sales volumes. Lower sales
volumes decreased revenue by 2 percent. Sales price increases that were
conducted in Russia at the beginning of the year had a positive effect on
revenue.
Profitability was weakened by the decrease in revenue and higher sales and
marketing expenses in the west.
A reduction in net financial expenses, due to realized and unrealized exchange
rate differences, improved the result for the period. The most significant
improvement was related to the ruble denominated items.
Financial development in January-September 2016
Tikkurila Group''s revenue decreased in January-September 2016 due to weak
foreign exchange rates and divestments. Higher sales volumes increased revenue
by one percent. Sales price increases had a positive effect on revenue.
Profitability was weakened by the decrease in revenue, raw material costs that
were higher in Russia due to the weak ruble, as well as sales and marketing
expenses that were higher than in the comparison period.
Guidance for 2016 intact
Tikkurila expects its revenue for the financial year 2016, with exchange rates
as of the publication date of the financial statement release, to be at the same
level as in 2015. Adjusted operating profit is expected to stay at 2015 level.
Tikkurila Oyj
Erkki Järvinen, President and CEO
For further information, please contact:
Erkki Järvinen, President and CEO
Mobile +358 400 455 913, erkki.jarvinen(at)tikkurila.com
Jukka Havia, CFO
Mobile +358 50 355 3757, jukka.havia(at)tikkurila.com
Minna Avellan, Director, Investor Relations and Brand Concept Development
Mobile +358 40 533 7932, minna.avellan(at)tikkurila.com
Tikkurila is the leading paints and coatings professional in the Nordic region
and Russia. With our roots in Finland, we now operate in 16 countries. Our high-
quality products and extensive services ensure the best possible user experience
in the market. Sustainable beauty since 1862.
www.tikkurilagroup.com
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Tikkurila Oyj via GlobeNewswire
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Datum: 28.10.2016 - 02:00 Uhr
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