Tikkurila's financial targets remain unchanged, schedule extended
Tikkurila Oyj
Stock Exchange Release
June 14, 2016 at 8:00 (CET+1)
Tikkurila's financial targets remain unchanged, schedule extended
Tikkurila's Board of Directors has decided to adhere to the financial targets defined for the Group in 2012 but extend the period of time over which their realization is measured. The primary underlying reason for this decision is the Russian market situation which took a turn for the worse soon after the targets were set. The realization of the targets were initially going to be assessed after a five-year period (2013-2017) in 2018. The targets are now set for a longer period, which will be specified in closer detail, if necessary, after market outlooks have become clearer.
Tikkurila's long-term financial targets are the following:
Revenue: Revenue EUR 1 billion
Relative profitability: Operative EBIT margin over 12 percent
Return on capital: Operative return on capital employed (ROCE) over 20 percent
Balance Sheet structure: Gearing less than 70 percent
"Tikkurila is a profitable company with a good financial standing, and the execution schedule of our financial goals is extended specifically because of the challenging nature of our growth target. Russia is such an important market for Tikkurila that good developments in other markets or ongoing growth projects have not been sufficient to compensate for the quick downturn taken by our Russian revenue, primarily caused by the depreciation of the local currency. However, the search for growth in all customer segments remains high on our list of priorities, and we continue to make an effort towards this goal," says Erkki Järvinen, President and CEO.
Tikkurila Oyj
Erkki Järvinen
For further information, please contact:
Tikkurila Oyj
Erkki Järvinen, President and CEO
Mobile +358 400 455 913, erkki.jarvinen@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.