Tikkurila provides information on its profitability targets and the Vantaa site development plan, retains its guidance for 2020
18 December 2020 at 9.01
Other information disclosed according to the rules of the Exchange
During the last three years, Tikkurila Oyj has made a successful turnaround and improved its performance due to its clear strategic action plan and committed employees. Furthermore, the company has increased sales of its premium brands, improved its operational and commercial excellence and focused on efficiency of all operations. Tikkurila has recently updated its mid-term strategic plan 2021-2023 and restated its previously communicated strategic financial targets: faster than home market growth and an EBIT margin of 12%. Based on the updated strategy Tikkurila plans to invest in growth during 2021-2022 and to reach the targeted EBIT margin towards the end of the period.
As communicated in its press release on 27 November 2020, Tikkurila Oyj plans to relocate its Finnish business operations and to develop the land area of the company’s current facilities. The centre and the residential settlement of the Tikkurila area in Vantaa have been expanding over the years to reach the proximity of the company’s facilities, and the current location is no longer considered optimal for industrial activities. The city planning by the city of Vantaa and the design and construction process of a potential new production plant will take several years, during which manufacture will continue in the current units. Tikkurila Oyj envisages that the land area encompassing the current operations could be sold in phases by year 2035. The company further expects that the proceeds from the sale of the land area will be sufficient to clearly cover the cost of the relocation from the current site.
Tikkurila retains its guidance for 2020. The full-year adjusted operating result is expected to continue to improve (2019: EUR 46.4 million). Tikkurila will not give guidance for the revenue for 2020 due to expected fluctuations in demand in all segments.
For more information, please contact:
Elisa Markula, CEO, +358 50 596 0978, email@example.com
Markus Melkko, CFO, +358 40 531 1135, firstname.lastname@example.org
Nasdaq Helsinki Ltd
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Tikkurila is a leading Nordic paint company with expertise that spans decades. We develop premium products and services that provide our customers with quality that will stand the test of time and weather. We operate in seven countries and our 2,700 dedicated professionals share the joy of building a vivid future through surfaces that make a difference. In 2019, our revenue totaled EUR 564 million. The company is listed on Nasdaq Helsinki. Nordic quality from start to finish since 1862.