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Business units

Tikkurila’s business operations are organized in four reporting segments, or Strategic business units (SBU). As of January 1, 2014, Tikkurila’s reporting segments are SBU West and SBU East.

The new reporting structure better supports developing Tikkurila's business operations, implementing the growth strategy, and taking EU legislation into consideration. Legislation is one of the key factors affecting the product development, production, and logistics function.

 

TIKKURILA

SBU WEST

Sweden

Denmark

Norway

Finland

Poland

Estonia

Latvia

Lithuania

Germany

SBU EAST

Russia

Central Asia

China

Export

SBU West's operating area is Northern and Central Europe. SBU West focuses on the development, manufacture and sales of premium products. Customers are offered extensive services related to painting planning and implementation.

Operating area

  • Sweden, Denmark, Norway, Finland, Poland, Germany, Estonia, Latvia, and Lithuania
  • Production sites: Nykvarn, Sweden; Vantaa, Finland; Debica, Poland; Tallinn, Estonia; Lunderskov, Denmark
  • Largest market: Sweden (revenue EUR 133 million in 2017, 23% of Group), Finland (EUR 93 million, 16% of Group), Poland (EUR 77 million, 13% of Group)

Key figures 2017 (EUR million)

  • Revenue: 379.8 (2016: 395.2)
  • Adjusted operating profit: 18.1 (45.3)
  • Adjusted operating profit, %: 4.8% (11.5%)
  • Operating profit: 16.2 (45.1)
  • Personnel: 1,605 (1,649)

 Market position

  • The leading supplier of decorative paints in Sweden with a market share of approximately 37 percent (value)
  • The leading supplier of decorative paints in Finland with a market share of over 50 percent (value
  • No. 4 in decorative paints in Poland with a market share of approximately 15 percent (volume)
  • The leading supplier of decorative paints in the Baltic countries with a market share of approximately 20 percent (Tikkurila’s estimate)

Markets: Sweden, Denmark, Norway, Finland, Poland, Germany, Estonia, Latvia, and Lithuania.

Main brands: Tikkurila, Beckers, Alcro, Vivacolor

Customers: Retail, wholesale, consumers, construction professionals, influencers such as architects and interior designers, metal and wood industry customers

Distribution: building supply stores, independent paint retailers, wholesalers, Tikkurila's professional stores, direct sales

Introductions to the main paint markets of SBU West are presented below:

SWEDISH PAINT MARKET
  • The value of the paint market some EUR 450 million
  • Paint consumption per capita some 12 liters
  • Low average yearly growth 

Demand structure: Premium and medium price and quality segment products

Brands: Alcro, Beckers, Tikkurila

Distribution channels:

  • Decorative paints: DIY retailers, Alcro-Beckers professional stores, Happy Homes chain and Colorama retail chain
  • Industrial coatings: direct sales, Tikkurila Industrial Paint Service 

Competitors: AkzoNobel, Flügger, Jotun, Sherwin-Williams, Teknos, a large number of local suppliers

FINNISH PAINT MARKET
  • The value of the paint market some EUR 230 million
  • Paint consumption per capita some 11 liters
  • Low average yearly growth 

Demand structure: Premium and medium price and quality segment products

Brands: Tikkurila

Distribution structure:

  • Decorative paints: DIY retailers, independent retailers
  • Industrial coatings: direct sales, Tikkurila Industrial Paint Service

Competitors: Teknos, NorMaali, Sherwin-Williams, a large number of local suppliers

POLISH PAINT MARKET
  • The value of the Polish decorative paint market some EUR 600 million
  • Paint consumption per capita some 11 liters in Poland
  • The average yearly growth of the value of the Polish decorative paint market some 5 percent in the past years

Demand structure

  • Medium and economy price and quality segment products
  • Premium price and quality segment products expected to rise the fastest along with improving standards of living and higher quality standards

Brands: Tikkurila, Beckers, Jedynka, Polifarb Debica

Distribution channels:

  • Decorative paints: DIY retailers, independent retailers, wholesalers
  • Industrial coatings: direct sales, Tikkurila Industrial Paint Service

Competitors: AkzoNobel, PPG, Sniezka, Caparol, Meffert, Teknos, Jotun, Hempel, Flügger, Benjamin Moore, a large number of local and regional suppliers

 

SBU East's operating area is Russia, Central Asian countries and China. SBU East mainly focuses on developing and manufacturing economy products; premium products are mainly imported to the area from SBU West. Customers are increasingly offered extensive services related to painting planning and implementation.

Operating area

  • Operating area: Russia, Central Asian countries and China. Furthermore, this SBU is responsible for the exports to more than 20 countries.
  • Production sites: St. Petersburg (3) and Stary Oskol, Russia; Almaty, Kazkhstan
  • Largest market: Russia (revenue EUR 143 million in 2017, 25% of Group) 

Key figures 2017 (EUR million)

  • Revenue: 202.6 (176.8)
  • Adjusted operating profit: 15.2 (13.4)
  • Adjusted operating profit, %: 7.5 % (7.6%)
  • Adjusted operating profit: 8.2 (12.6)
  • Personnel: 1,409 (1,353)

Market position

The leading supplier of decorative paints in Russia with a market share of approximately 15% (volume)

Markets: Russia, Central Asian countries and China; SBU East is also in charge of imports to more than 20 countries.

Main brands: Tikkurila, Teks

Customers: Retail, wholesale, consumers, construction professionals, influencers such as architects and interior designers, metal and wood industry customers

Distribution: building supply stores, independent paint retailers, wholesalers, direct sales

RUSSIAN PAINT MARKET
  • The value of the Russian paint market approximately EUR 1.5 billion
  • Paint consumption per capita approximately 6 liters
  • The average yearly volume growth of the Russian decorative paints market approximately 6% between 2004–2013, the market has been declining in recent years

Demand structure:

  • Economy price and quality category products
  • Premium price and quality category products expected to rise the fastest along with improving standards of living and higher quality standards

Brands: Tikkurila, Teks, Finncolor

Distribution channels:

  • Deco: DIY retailers, independent retailers, wholesalers
  • Industry: direct sales, Tikkurila Industrial Paint Service 

Competitors: AkzoNobel, Lakra-Sintez, Empils, ABC-Farben, Meffert, Caparol, a large number of local suppliers

Revenue by segment

 

Personnel by segment