Guidance for 2018 as updated with a stock exchange release on 14 December 2018.
The development of the Group’s business operations and profitability are affected by factors such as the market situation and competitive environment, economic outlook, imports by consumers and changes in the alcohol taxation. The uncertainty in the eurozone and changes in customers’ buying behaviour are continuing. There is still significant uncertainty related to the development of consumer demand. Raw material prices and currencies are expected to remain volatile.
Sales in the sector are seasonal, with net sales and operating profit generally being significantly higher in the fourth quarter of the year compared to other quarters.
Altia estimates that its comparable EBITDA is expected to be below last year’s level.
Underlying sales is developing according to expectations. However, the earlier reported challenging operating environment has put some additional pressure on Altia’s fourth quarter and impacted profitability more than anticipated.
Additionally, based on a preliminary outcome of a tax audit in Finland Altia is making a provision of EUR 0.5 million on excise tax class revision of two products. Altia is considering measures to contest the outcome.
To improve profitability, Altia has decided to take steps with further price adjustments on top of ongoing revenue management at the beginning of the year in consumer products according to the pricing windows in the monopolies. Further, Altia has already initiated measures to improve cost efficiency.
Updated guidance for 2018 (update on 14 December 2018):
The comparable EBITDA for 2018 is expected to be below last year’s level.
The comparable EBITDA for 2017 was EUR 42.4 million.
Earlier guidance from 23 February 2018:
The Group’s comparable EBITDA is expected to improve or be at the 2017 level.