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Aspo Investor Event: Telko aims to double its operating profit by the end of 2020

Published Nov 22, 2017 9:31:02 AM

ASPO PLC             STOCK EXCHANGE RELEASE  November 22, 2017 at 9:30 a.m.     
 

ASPO INVESTOR EVENT: TELKO AIMS TO DOUBLE ITS OPERATING PROFIT BY THE END OF 2020

The Aspo conglomerate will hold an investor event in Helsinki today on November 22, 2017, at 11:00 a.m. Aki Ojanen, CEO of Aspo Group, will give a presentation about leading and developing Aspo's subsidiaries to meet the Groups's long-term financial targets.


After this, the focus will be shifted to Telko, one of Aspo's subsidiaries. Telko is the leading expert and supplier of plastic raw materials and industrial chemicals in Finland and its neighboring areas. Telko acts as a link between raw material producers and users of chemicals, and provides expert services to small and medium-sized subcontractors that manufacture plastic components. Kalle Kettunen, Managing Director of Telko, will present Telko's long-term financial targets, based upon its business, operational environment and strategic work, which support the realization of Aspo Group's targets.
 
The presentation material for the event is available today at 11:00 a.m. on Aspo's website, at www.aspo.com.

Telko estimates its net sales to be at EUR 300-350 million and operating profit at 6-7 percent by the end of 2020

Telko's market environment drives growth. In the third-party distribution business, volume typically correlates with GDP growth, and a significant part of Telko's sales are in rapidly growing emerging economies. The company's growth is further supported by positive development in the distribution market and an increasing demand for tailored services and products. Telko is continuously developing new value-added services, and aims for higher profitability through unifying and optimizing its operations. In addition to the estimated growth that is mainly organic, the market offers good M&A opportunities for speeding up growth.

Aspo's guidance for 2017 and financial targets remain unchanged

Aspo's operating profit will be EUR 23-26 (20.4) million in 2017.

Aspo's financial targets remain unchanged. Aspo's objective is to reach an average return on equity of over 20%, gearing of up to 100% and an operating profit of 7% with current structure by 2020.

ASPO PLC

Aki Ojanen
CEO

Further information:
Aki Ojanen, CEO, Aspo Plc, tel. +358 400 106 592, aki.ojanen(a)aspo.com and Kalle Kettunen, CEO Telko Ltd, tel. +358 40 558 5478, kalle.kettunen(a)telko.com

Aspo is a conglomerate that owns and develops business operations in Northern Europe and growth markets, focusing on demanding B2B customers. Our strong business brands - ESL Shipping, Leipurin, Telko and Kauko - aim to be the market leaders in their sectors. They are responsible for their own operations, customer relationships, and their development. Together they generate Aspo's goodwill. Aspo Group's structure and business operations are continually developed without any predefined schedule.

Telko is a leading expert and supplier of plastic raw materials and industrial chemicals. Business is based on representation of the best international principals and on the expertise of the personnel. In 2016, Telko's net sales were EUR 240.3 million and operating profit was EUR 10.1 million.


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www.aspo.fi