Tikkurila Oyj
Stock Exchange Release
April 29, 2016 at 9:00 a.m. (CET+1)
Tikkurila's Business Review for January-March 2016
Tikkurila's revenue for the first quarter decreased by 2.1 percent to EUR 130.4 million (1-3/2015: EUR 133.2 million). Operative EBIT* totaled EUR 12.5 (15.3) million, i.e. 9.6 (11.5) percent of revenue.
"The slight decline in revenue was due to weak foreign exchange rates and lower pre-season deliveries of outdoor paints in the western operating area. The importance of pre-season orders seems to be diminishing and the deliveries take place closer to start of the actual outdoor painting season in the Nordic countries as well. In the east, the favorable development of our Chinese operations kept SBU East's revenue at the comparison period level. Group profitability was decreased by the decline in revenue and higher raw material expenses in the east, caused by the weak ruble. In 2015, our market share strengthened or remained stable in all key markets with the exception of Russia where our market share decreased by one percentage point," says Erkki Järvinen, President and CEO.
Key figures
| (EUR million) | 1-3/2016 | 1-3/2015 | Change % |
| Group data | | | |
| Revenue | 130.4 | 133.2 | -2.1% |
| Operative EBIT* | 12.5 | 15.3 | -18.3% |
| Operative EBIT margin, % | 9.6% | 11.5% | |
| EPS, EUR | 0.23 | 0.30 | -25.4% |
| Net Interest-bearing liabilities (at period-end) | 75.5 | 57.3 | 31.7% |
| Total equity (at period-end) | 205.5 | 174.6 | 17.7% |
| Total assets (at period-end) | 452.6 | 443.8 | 2.0% |
| Segment data | | | |
| SBU West revenue | 99.6 | 102.2 | -2.5% |
| SBU West operative EBIT | 14.3 | 16.9 | -15.6% |
| SBU East revenue | 30.8 | 31.0 | -0.6% |
| SBU East operative EBIT | -0.6 | 0.1 | |
| Revenue by country | | | |
| Sweden | 38.4 | 39.2 | -1.9% |
| Russia | 18.5 | 20.3 | -8.8% |
| Finland | 28.3 | 30.7 | -7.8% |
| Poland | 16.9 | 15.4 | 9.4% |
*"Operative EBIT" corresponds to "operating profit (EBIT) excl. non-recurring items"
Financial development in January-March 2016
Tikkurila Group's revenue decreased in the first quarter of 2016 due to weak foreign exchange rates and lower sales volumes. 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 clearly higher sales and marketing expenses in Sweden.
The increase in net interest-bearing liabilities was due to the termination of factoring financing, which has led to an intra-year timing difference.
Tikkurila Oyj
Erkki Järvinen, President and CEO
For further information, please contact:
Erkki Järvinen, President and CEO
Mobile +358 400 455 913, erkki.jarvinen@tikkurila.com
Jukka Havia, CFO
Mobile +358 50 355 3757, jukka.havia@tikkurila.com
Minna Avellan, Director, Investor Relations and Brand Concept Development
Mobile +358 40 533 7932, minna.avellan@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 OMX Corporate Solutions on behalf of NASDAQ OMX 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
HUG#2008149