Honkarakenne Oyj

Management Reports • Mar 1, 2022

HONKARAKENNE OYJ WITHDRAWS ITS FINANCIAL GUIDANCE FOR 2022

HONKARAKENNE OYJ WITHDRAWS ITS FINANCIAL GUIDANCE FOR 2022

HONKARAKENNE OYJ                 Insider information 1 March 2022 at 13:30

HONKARAKENNE OYJ WITHDRAWS ITS FINANCIAL GUIDANCE FOR 2022

Russia's military operations in Ukraine have resulted in Honkarakenne deciding to suspend sales to Russia. For projects in order and delivery stages, Honkarakenne examines the situation critically based on the delivery contract of each project.

The effects of excluding sales to Russia causes significant uncertainty in 2022 net sales and in the Group's earnings development. The company has one importer in Russia. Honkarakenne has no other operations, staff or production facilities in Russia.

In line with its updated strategy, the company is prepared to seek new international markets allocating resources to selected market areas. The Group's sales investments are more strongly targeted at the domestic, European and Asian markets.

Overall, the duration of the uncertainties and all business impacts are difficult to assess at this stage. The company will adapt its operations to the changed situation.

At a meeting held on 1 March 2022, Honkarakenne Oyj's Board of Directors decided to withdraw the financial guidance for 2022 published on 16 February 2022. Due to the ongoing uncertainties, the Board of Directors refrains from providing any new guidance for 2022 at this time. 

Previous guidance, published 16 February 2022:

Honkarakenne's outlook is that net sales and profit before taxes will remain at the previous year's level in 2022.

Honkarakenne's half-year financial report for January-June 2022 will be published on 24 August 2022.

HONKARAKENNE OYJ

Board of Directors

Further information:

CEO Marko Saarelainen, tel. +358 40 542 0254, marko.saarelainen@honka.com or

CFO Maarit Jylhä, tel. +358 40 594 4099, maarit.jylha@honka.com

DISTRIBUTION

NASDAQ OMX Helsinki Ltd

Principal media

Finnish Financial Supervisory Authority

www.honka.com

Honkarakenne Oyj manufactures high-quality, healthy and ecological log homes, holiday homes and public buildings under its Honka® brand from Finnish solid wood. The company has delivered 85,000 buildings to over 50 countries. House kits are manufactured in Finland, the company's own factory is located in Karstula. In 2021, Honkarakenne Group's net sales were EUR 69.7 million, of which exports accounted for 37%. www.honka.fi