Marimekko Corporation, Stock Exchange Release, 1 November 2018 at 8 a.m.
MARIMEKKO SEEKS TO ACCELERATE PROFITABLE GROWTH AND TO IMPROVE CAPITAL EFFICIENCY, PROPOSES DISTRIBUTION OF AN ADDITIONAL DIVIDEND OF EUR 1.25 PER SHARE, AS WELL AS REVISES ITS FINANCIAL GOALS
The sale of Marimekko’s head office in April 2018 strengthened the company’s financial position. In its half-year financial report published on 9 August 2018, Marimekko stated that, in the autumn, the company’s Board of Directors will examine various options to use the funds obtained from the transaction. In this evaluation, the Board has focused on accelerating profitable growth and improving capital efficiency.
The Board of Directors has decided that part of the funds will be used for development of strategically important business areas and that a proposal for the payment of an additional dividend will be made to the Annual General Meeting to be held in spring 2019. At the same time, the Board has examined the company’s long-term financial goals and decided to revise the goals related to profitability and capital structure.
Part of the funds to be used for accelerating profitable growth
Marimekko sold and leased back its head office in spring 2018 to be able to focus on the development of the company’s core business. The company has also announced that, in the coming years, it will seek clearly stronger growth than before. As part of its evaluation, the Board of Directors has now decided that part of the funds obtained from the sale of the head office will be used for development of strategically important business areas. The aim of these initiatives is to accelerate customer base expansion by continuing the development of the brand and the collections and by investing in digital business, omnichannel operations, IT systems and growth in Asia.
The Board will propose to the Annual General Meeting distribution of an additional dividend
In the view of Marimekko’s Board of Directors, the company’s strong financial position allows the distribution of an additional dividend. Furthermore, the Board has paid special attention to improving capital efficiency. Thus, the Board will propose to the Annual General Meeting to be held in spring 2019 that an extra dividend of EUR 1.25 per share be paid. The Annual General Meeting is planned to be held on Wednesday 17 April 2019. The Board will publish a notice of the Annual General Meeting and the proposals to the Meeting (including a proposal for the regular annual dividend) according to the normal schedule in early 2019.
The company revises its long-term financial goals
As part of its evaluation, Marimekko’s Board of Directors has also decided to revise the long-term goals related to the company’s profitability and capital structure. The updated financials goals are as follows:
Further information:
Tiina Alahuhta-Kasko, President and CEO, tel. +358 9 758 71
Elina Anckar, CFO, tel. +358 9 758 7261
MARIMEKKO CORPORATION
Board of Directors
DISTRIBUTION:
Nasdaq Helsinki Ltd
Key media
Marimekko is a Finnish design company renowned for its original prints and colours. The company’s product portfolio includes high-quality clothing, bags and accessories as well as home décor items ranging from textiles to tableware. When Marimekko was founded in 1951, its unparalleled printed fabrics gave it a strong and unique identity. Marimekko products are sold in about 40 countries. In 2017, brand sales of the products worldwide amounted to EUR 193 million and the company's net sales were EUR 102 million. Roughly 150 Marimekko stores serve customers around the globe. The key markets are Northern Europe, North America and the Asia-Pacific region. The Group employs about 450 people. The company’s share is quoted on Nasdaq Helsinki Ltd. www.marimekko.com