Frequently asked questions

This page contains questions that are frequently asked about Tikkurila.

Market position

What is Tikkurila’s market share?

Tikkurila is a leading decorative paint company in Finland (market share in decorative paints: more than 50%), Sweden (approximately 37%), Russia (approximately 15%), and the Baltic countries (approximately 20%). In Poland, Tikkurila is the fourth largest player (approximately 15%). More than 80% of Tikkurila’s revenue is generated by decorative paints.

What are Tikkurila’s largest countries in terms of revenue?

Russia (revenue in 2018 EUR 143 million, 24%), Sweden ( EUR 133 million, 23% of Group's revenue), Finland (EUR 93 million, 16%) and Poland (EUR 77 million, 13%).

Who are Tikkurila’s major competitors?

On one hand, Tikkurila’s competitors include global corporations in the industry, such as AkzoNobel and PPG, and, on the other, mid-size companies focusing on certain product areas or geographical regions, such as Teknos, Flügger, Jotun, Caparol, Empils and Lakra-Sintez.

What are Tikkurila’s growth objectives?

Tikkurila’s goal is to be the leading paint company in the Nordic countries and Russia. Then new strategy will be introduced during Q2 2019.

Revenue and distribution channels

Who are Tikkurila’s customers?

Consumers and professionals (incl. industry). Tikkurila sells decorative paints to consumers and professionals mainly through retailers (e.g. hardware stores). The professional segment includes contractors, designers, house managers, construction companies, developers and influencers. On the industry side, Tikkurila sells paints and coatings to customers within the wood and metal industry.

How does Tikkurila sell paints?

Tikkurila sells decorative paints primarily to DIY retailers (hardware stores), paint retail store chains, and independent paint retailers, who in turn sell paint to consumers. In Scandinavia, Tikkurila also has its own paint stores. In Central Eastern Europe and Russia, distribution routes are more complex (e.g. wholesalers). Tikkurila sells industrial paints directly to customers or through the Temaspeed sales network.

How does Tikkurila’s revenue break down between industry, professionals, and consumers?

In 2017, the share of professionals and consumers was 82% of revenue (decorative paints), and the share of industry was 18% (industrial coatings).

How does Tikkurila’s revenue break down between new construction and renovation?

Renovation has a greater impact on the demand for decorative paints than new construction. According to Tikkurila’s estimate, the share of renovation is, on average, approximately 2/3 and that of new construction about 1/3.

The development of Tikkurila’s revenue is attributable to, among others, changes in sales prices and in the sales mix. What does the sales mix mean?

The sales mix means the whole of products sold by Tikkurila within a certain time period, and, in particular, the share of each product group and products of the total sales of the period in question. The proportionate share of different products in the sales varies depending on, among others, economic trends and seasons. A downward economic trend usually has more effect on the demand of industrial paints than decorative paints. In addition, for example as construction recovers, demand for the larger container sizes grows as the professionals’ activity increases. Certain longer-term trends such as switching to higher price and quality grade products in the developing markets and increased demand for more environmentally-friendly product groups also affect the sales mix.

Raw materials

What are Tikkurila’s most important raw materials?

Tikkurila’s most important raw materials include pigments (e.g. titanium oxide), binders, solvents and additives. In addition to the raw materials, packaging materials, metal and plastic containers in particular, are a significant expense item.

How do changes in raw material prices affect Tikkurila?

Raw materials are Tikkurila’s greatest individual expense item, and thus changes in raw material prices have a significant effect on Tikkurila’s operations. Traditionally, Tikkurila’s pricing power has been good, and the company has been able to cover the increase in raw material prices well by raising its own prices, although sales price changes do not necessarily coincide with the changes in the cost basis.

How does the price of oil affect Tikkurila’s operations?

The development of oil prices impacts Tikkurila’s operations through raw materials and also through the operations in Russia. The importance of oil-based raw materials has decreased on the long term as waterborne paints have gained popularity. In all, increases in the price of oil usually have a positive effect on Tikkurila's business since there has been a trend of positive correlation between increased oil prices and the development of Russia’s national economy. The overall economic development has a significant impact on demand for paints.

Cost structure

What is Tikkurila’s cost structure like?

Raw material and packaging material costs are Tikkurila's largest expense item, accounting for approximately a half of revenue in total. Sales and marketing costs amounted to approximately 17% of revenue in 2018. Research and development costs are approximately 2% of revenue annually.

Capital expenditure

What is Tikkurila’s capital expenditure need?

In 2018, gross capital expenditure excluding acquisitions amounted to EUR 14.6 (23.3) million. Over a longer term, the volume of replacement investments and reinvestments, excluding significant new construction sites, can be expected to be reasonably close to the depreciation level of the income statement. Paint manufacturing does not require as much capital as the chemical industry in general.

What is Tikkurila’s acquisition policy?

Tikkurila seeks growth both organically and through acquisitions. Significant acquisitions include, among others, the purchase of the Swedish Alcro-Beckers in 2001 (revenue of approximately EUR 190 million) and of the Russian Kraski Teks in 2006 (revenue of approximately EUR 80 million). The acquisitions will focus on companies that have a good market position in the target market, known and strong brands as well as an extensive distribution and customer network.

Corporate responsibility

Does Tikkurila apply Sustainable Development Indices?

Tikkurila’s share does not belong to Sustainable Development Indices. As part of its Annual Report, Tikkurila publishes a Corporate Responsibility Report, verified by a third party, which is compiled in accordance of the international GRI guidelines and which also presents Tikkurila’s measures to promote sustainable development.

What kind of environmental effects do Tikkurila’s operations have?

According to life cycle surveys, the most significant environmental effects of paints include, among others, the energy consumed in the production of raw materials, packaging materials, and solvents emitted when applying paints. Tikkurila aims to make its processes as eco-friendly as possible and to increase the share of waterborne paints in production (in 2018, the share of waterborne paints of the entire production was 75.2%).

Exchange rate effect

What are Tikkurila’s invoicing currencies? How do exchange rate fluctuations impact Tikkurila’s business?

Tikkurila’s subsidiaries invoice their customers in the currency of their home market. For the Group, the most significant of these currencies are Russian ruble, Swedish krona, and Polish zloty. Exchange rate fluctuations have an effect on the Group’s key figures reported in euro through the income statement, balance sheet and cash flow statement.  The company’s equity is subject to currency risk when subsidiaries’ foreign currency equity items are translated into euro. Tikkurila hedges against currency risks with forward exchange agreements.

Shares and dividend

What is Tikkurila’s policy in terms of dividend payments?

Tikkurila's dividend history:


2010 dividend per share EUR 0.70

2011 dividend per share EUR 0.73

2012 dividend per share EUR 0.76

2013 dividend per share EUR 0.80

2014 dividend per share EUR 0.80

2015 dividend per share EUR 0.80

2016 dividend per share EUR 0.80

2017 dividend per share EUR 0.80

2018 dividend per share EUR 0.33

Historical dividends have corresponded to 69–331% of the operative net income. In accordance with Tikkurila’s dividend policy, Tikkurila aims to distribute a dividend that is no less than 40 percent of its annual operative net income. Operative net income is the net profit for the period excluding non-recurring items and adjusted with tax effects.

Does Tikkurila’s Management Board own the company’s shares or have options?

Tikkurila's CEO and CFO do not own Tikkurila shares (April 30, 2019). In early 2012 and 2016, Tikkurila announced a share-based commitment and incentive plan for key personnel.

What is the taxation value of the share received in connection with Tikkurila's listing?

The taxation value and purchase price of Tikkurila’s share received as share dividend is EUR 15.80 (the  volume weighted average price of the first trading date, or March 26, 2010).