Tikkurila's Financial Statement Release 2019
Tikkurila Oyj
Financial Statement Release
February 12, 2020 at 9:00 a.m. (CET+1)
Tikkurila Financial Statement Release for January−December 2019
Tikkurila’s adjusted operating result increased by 19.5% from the previous year in 2019
This is a summary of Tikkurila's Financial Statement Release. The full report is attached to this stock exchange release and is available on Tikkurila's website.
Full year 2019 highlights
- Revenue increased by 0.4 percent to EUR 563.8 (561.5) million. Comparable revenue increased by 1.4 percent, excluding currency effects, divestments and closures.
- Adjusted operating result increased by 19.5 percent to EUR 46.4 (38.8) million and was 8.2 (6.9) percent of revenue. The comparison period (2018) included a EUR 6 million insurance compensation regarding a fire at a supplier’s titanium dioxide plant.
- Operating result (EBIT) increased to EUR 43.9 (26.5) million and was 7.8 (4.7) percent of revenue.
- EPS increased by 127.9 percent to EUR 0.75 (0.33).
October−December 2019 highlights
- Revenue increased by 2.4 percent to EUR 107.9 (105.5) million. Comparable revenue increased by 1.3 percent, excluding currency effects, divestments and closures.
- Adjusted operating result decreased by 38.3 percent to EUR -7.6 (-5.5) million and was -7.1 (-5.2) percent of revenue. The comparison period (Q4/18) included a EUR 4.75 million insurance compensation
- Operating result (EBIT) was EUR -7.7 (-8.6) million, and -7.1 (-8.2) percent of revenue.
- EPS was EUR -0.17 (-0.19).
Dividend proposal
- The Board proposes a dividend of EUR 0.50 (0.33) per share, which corresponds to 66 (100) percent of the Group’s 2019 earnings per share. It is proposed that the dividend will be paid in two equal tranches.
Guidance for 2020
- Adjusted operating result will continue to improve (2019: EUR 46.4 million)
- Revenue is expected to remain at previous year’s level (2019: EUR 563.8 million), excluding currency effects
Elisa Markula, CEO
During the full year 2019, our adjusted operating result increased by 19.5 percent compared to the previous year. Cash flow was strong driven by good development in profitability. ROCE improved to 15.4%. The full impact of the restructuring measures executed in 2018 was now visible in our fixed costs.
Tikkurila focused on profitability, and our revenue remained stable despite a challenging year in the market. Comparable revenue, excluding the impact from currencies, divestments and closures, increased by 1.4 % during 2019. Regionally our performance was mixed. In Russia and Poland, strong performance continued in growing markets. In Finland and Sweden, revenue declined in a soft market driven by lower levels of pre-season sales of exterior paints. In 2020, improving sales performance in these two mature markets remains a key priority for Tikkurila.
Since 2017, Tikkurila has increased its adjusted EBIT by EUR 18 million – tripled our EPS – and decreased fixed costs by EUR 35 million. Our financial turnaround has been driven by the increased sales of our premium brands, continued price increases to offset high raw material costs and the strict cost control. We continue to decisively execute the strategy action plan announced in June to further improve performance in key areas, with special focus on improving operational and commercial excellence further in all markets, as well as generating new growth.
With our premium brands – and close to 160 years of expertise – as the company’s strongest asset, Tikkurila is well-positioned to provide its customers with high-quality goods and services. Tikkurila is the market leader for decorative paints in Russia, Sweden, Finland and the Baltics, and we are currently heading determinately towards being the third largest paint producer in Poland, in which four paint producers currently compete for leadership evenly. There is much more potential in this company, and the full impact of all actions will be visible in the longer run.
Key figures
IFRS16 standard has been applied as of January 1, 2019. Historical figures have not been adjusted.
| EUR million | 1-12/2019 | 1-12/2018 | Change % | 10-12/2019 | 10-12/2018 | Change % |
| Revenue | 563.8 | 561.5 | +0.4% | 107.9 | 105.5 | +2.4% |
| Excl. FX, divestments, and closures | +1.4% | +1.3% | ||||
| Adjusted operating result | 46.4 | 38.81) | +19.5% | -7.6 | -5.52) | -38.3% |
| Adjusted operating result margin, % | 8.2% | 6.9% | +1.3%-p | -7.1% | -5.2% | -1.9%-p |
| Operating result (EBIT) | 43.9 | 26.5 | +65.5% | -7.7 | -8.6 | +11.0% |
| Operating result (EBIT) margin, % | 7.8% | 4.7% | +3.1%-p | -7.1% | -8.2% | +1.1%-p |
| Profit before taxes | 44.2 | 21.0 | +109.9% | -8.1 | -9.9 | +18.2 |
| Net result for the period | 33.2 | 14.6 | +127.9% | -7.4 | -8.4 | +12.1% |
| Earnings per share (EPS), EUR | 0.75 | 0.33 | +127.9% | -0.17 | -0.19 | +12.1% |
| Net interest-bearing liabilities (at period-end) | 78.4 | 85.5 | -8.4% | |||
| Total equity (at period-end) | 171.9 | 150.1 | +14.5% | |||
| Total assets (at period-end) | 437.1 | 400.0 | +9.3% | |||
| Equity ratio, % | 39.3% | 37.6% | ||||
| Gearing | 45.6% | 57.0% | ||||
| ROCE, %, rolling | 15.4% | 9.3% | ||||
| Cash flow after capital expenditure | 52.7 | 36.3 | +45.4% |
1) In the comparison period (2018), adjusted operating result included a EUR 6 million insurance compensation.
2) In the comparison period (Q4/18), adjusted operating result included a EUR 4.75 million insurance compensation.
Press conference and live webcast
CEO Elisa Markula and CFO Markus Melkko will present Tikkurila’s full year results for 2019 in English for the media, institutional investors and analysts at Hotel Kämp’s cabinet Symposion (Pohjoisesplanadi 29, Helsinki) today February 12, 2020 at 1 pm (CET +1). Lunch will be served at the event at 12.30 pm.
The event can also be followed as a live webcast. To participate, please click on the link:
Dial-in details (PIN: 96974060#)
- FI: +358981710310
- SE: +46 856642651
- UK: +44 3333000804
- US: +18558570686
An on-demand version of the webcast will be available on our webpage later the same day. The report and related presentation material will be available before the press conference at http://www.tikkurilagroup.com/investors.
For further information, please contact:
Elisa Markula, CEO
+358 50 596 0978 elisa.markula@tikkurila.com
Markus Melkko, CFO
+358 40 531 1135 markus.melkko@tikkurila.com
Tapio Pesola, Director, Communication & IR
+358 44 373 4693 ir.tikkurila@tikkurila.com
Sustainable Nordicness
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 eleven countries and our 2,600 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.