Tikkurila withdraws guidance for 2020, weakened visibility to the impacts of the Covid-19 pandemic

Tikkurila Oyj, Inside information, March 27, 2020 at 5.15 p.m. (EET)

Tikkurila withdraws guidance for 2020, weakened visibility to the impacts of the Covid-19 pandemic

  • Tikkurila has performed according to plan during the first quarter
  • New regulatory measures by local governments are rapidly changing the operating environment, especially in Russia
  • Tikkurila withdraws the previously given guidance for 2020

The global coronavirus pandemic (Covid-19) and the related local regulation and restrictions are changing Tikkurila's business environment.

"During the first quarter Tikkurila has performed as planned, despite the challenging operating environment. We are managing the situation both locally, and on the Group-level and following the instructions from the local governments and health authorities. Today, Tikkurila’s production and sales are operating normally. We are in constant contact with our customers, raw material suppliers and other partners, and have adapted our operations to the changing situation”, says CEO Elisa Markula.

However, Tikkurila expects that new regulations by authorities may rapidly change the operating environment in different countries.

“For Tikkurila, uncertainties related to the pandemic are mainly related to the timing, extent and duration of the impacts which local regulations may have on mobility of people, customer demand, production and suppliers. So far, the direct impacts have been limited, but we anticipate these impacts may increase. Following the recent regulations by Russian authorities all our local employees will be on paid holiday for next week. Similar rules apply to all companies operating in Russia”, states Markula. Russia accounts for approximately one fourth of Tikkurila’s total revenue.

Tikkurila withdraws guidance for 2020

Due to increased uncertainty and weakened visibility, Tikkurila withdraws the previously given guidance for 2020. The company's long-term financial targets remain unchanged.

"We strive to continue to operate and serve our customers as normally as possible. However, it is currently very difficult to assess the short-term impacts of the pandemic. We continue to closely monitor the situation and will update our outlook as soon as reliable estimates on the financial impacts can be made ", says Markula.

Previous guidance for 2020 (published on February 12, 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

Tikkurila will publish the Q1/2020 business review on April 29, 2020 at approximately 09.00. am (EET).

 

Additional information:

Elisa Markula, CEO, Tikkurila Oyj
+358 50 596 0978
elisa.markula@tikkurila.com

Tapio Pesola, Director, Investor Relations & Communications
+358 44 373 4693
tapio.pesola@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 around ten 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. 

www.tikkurilagroup.com

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