Saga Furs Oyj : The global situation was reflected in Saga Furs' auction, the company issues a profit warning

Saga Furs Stock Exchange Release 27 April 2022

Saga Furs online mink auction concluded today. For a long time, Saga Furs has held four auctions per year, but due to the increased number of pelts, the company decided to hold a fifth auction, now organised, during this season.

"The auctions in March and April were planned as a single package, whereby certain types of mink were offered only in one of them. It was therefore decided to carry out the auction despite the difficult market situation and to allow fur garment manufacturers to purchase all types of mink. The ever-increasing strong corona restrictions in China are reflected in growing uncertainty. In addition, the war in Ukraine has further hampered the fashion and fur industries already affected by the COVID-19 pandemic as rising costs and logistical challenges. The impact of the world situation was already reflected in the Saga Furs March auction, so the sales of the April auction met modest expectations," says Juha Huttunen, Deputy Managing Director of Saga Furs.

Of the 1.6 million mink pelts offered at the auction 10 per cent were sold. The brokerage value of the auction was EUR 5 million.

In the current uncertain market situation, Saga Furs' result for the financial year is estimated to decrease significantly compared to the previous financial year and to become unprofitable unless there is a substantial improvement in the company's main market in China.

Saga Furs will organise the next auction in June, when mink, fox, and Finnraccoon pelts are on offer.