Half year financial report
July 23, 2021 at 9.30 a.m. (EEST)
This is a summary of Tikkurila's half year financial report. The full report is attached to this stock exchange release and is available on Tikkurila's website.
April−June 2021 highlights
- Revenue increased by 7.4 percent to EUR 184.5 (171.8) million. Comparable revenue increased by 9.1 percent, excluding currency effects.
- Operating result (EBIT) decreased by 52.4 percent to EUR 15.8 (33.1) million and was 8.5 (19.3) percent of revenue. Operating profit was affected by costs related to PPG's tender offer, a total of EUR 11.4 million in the second quarter of 2021.
- Adjusted operating result decreased by 21.5 percent to EUR 27.2 (34.7) million and was 14.8 (20.2) percent of revenue.
- EPS decreased by 55.0 percent to EUR 0.28 (0.61).
- The voluntary recommended cash tender offer for all the shares in Tikkurila Oyj by PPG Industries, Inc. was completed on June 10, 2021. As of June 30, 2021, PPG Finland Oy, an indirectly wholly owned subsidiary of PPG Industries, Inc., owns 97.3 percent of all shares and votes in Tikkurila Oyj. The right and obligation of PPG Finland Oy to redeem minority shares have been registered with the Finnish Trade Register on June 14, 2021.
January−June 2021 highlights
- Revenue increased by 8.3 percent to EUR 329.9 (304.8) million. Comparable revenue increased by 10.7 percent, excluding currency effects.
- Operating result (EBIT) decreased by 23.5 percent to EUR 31.9 (41.7) million and was 9.7 (13.7) percent of revenue. Operating profit was affected by costs related to PPG's tender offer, a total of EUR 12.9 million in the first half of the year.
- Adjusted operating result increased by 3.7 percent to EUR 44.8 (43.2) million and was 13.6 (14.2) percent of revenue.
- EPS amounted to EUR 0.58 (0.70).
Guidance for 2021
- Due to the tender offer for all the shares in Tikkurila Oyj completed by PPG Industries, Inc. on June 10, 2021, Tikkurila will not give guidance for 2021. Consequently, the previous guidance given in the Q1 Business Review on April 28, 2021 is not in force.
Markus Melkko, Interim CEO & CFO:
During the second quarter Tikkurila's financial performance remained solid, and strong demand for our quality brands continued. Revenue increased by 7% and revenue without currency effect increased by 9%. The adjusted operating result decreased by -21% compared to the record high Q2/2020. The adjusted operating margin during the second quarter of 2021 was close to 15 percent.
During the first half of the year, the global paint industry has experienced an unprecedented raw material disruption, which has further escalated during the second quarter. The raw material and packaging inflation impacted our cost basis, and the simultaneous raw material supply issues impacted our ability to serve our customers.
In the first half of the year 2021, revenue increased by 8% (11% excluding currency effects) and adjusted operating result increased by 4% compared to the first half of 2020. Due to PPG's tender offer transaction operating result includes EUR 12.9 million costs, which are treated as items affecting comparability. These costs were advisory costs and costs related to employee incentives.
Tikkurila experienced good revenue growth in decorative paints in both interior and exterior paints. Revenue grew in all key geographies, except in Finland, where the second quarter revenue was slightly below the comparison period. Industrial paint revenue grew in both metal and wood paints against the comparison period.
Despite the varying Covid-19 restrictions in Tikkurila's operating countries, we have remained fully operational also during the second quarter.
We expect that raw material inflation and some supply constraints will continue during the second half of 2021. We will maintain focus on serving our customers to the best of our capabilities under the supply constraints, while maintaining our profitability with smart margin management and targeted pricing changes to offset inflation.
On June 10, 2021, PPG Industries, Inc. completed its voluntary cash tender offer. As of June 30, 2021, PPG Industries, Inc., through its wholly owned subsidiaries, owned 97.3% of Tikkurila Oyj shares and votes. PPG has commenced redemption proceedings, as defined under Finnish Companies Act, to redeem the minority shares.
Key figures for the Group
|Operating result (EBIT)
|Operating result (EBIT) margin, %
|Adjusted operating result
|Adjusted operating result margin, %
|Result before taxes
|Net result for the period
|Earnings per share (EPS), EUR
|Interest-bearing net liabilities (at period-end)
|Total equity (at period-end)
|Total assets (at period-end)
|Equity ratio, %
|ROCE, %, rolling
|Cash flow after capital expenditure
1) Comparable revenue excluding currency effects.
* Percentage points.
Tikkurila will not arrange a conference call for analysts and media regarding the company's half year financial report 2021.
Interim CEO, CFO
All contacts are handled via CEO Office, tel. +358 44 314 1381
Tikkurila IR & Communications
Attachment: Tikkurila Half year financial report 2021
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 seven countries and our 2,600 dedicated professionals share the joy of building a vivid future through surfaces that make a difference. In 2020, our revenue totaled EUR 582 million. The company is listed on Nasdaq Helsinki. Nordic quality from start to finish since 1862.
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