Oriola’s and Kesko’s joint venture Hehku is planning potential termination of the operations

Oriola Corporation Stock Exchange Release 21.11.2018 at 2.00 p.m.

Oriola’s and Kesko’s joint venture Hehku is planning potential termination of the operations

Oriola Corporation and Kesko Group announced in March 2017 that they establish a new joint venture, Hehku Kauppa Oy, in the field of health, beauty and wellbeing. The joint venture has not reached its business and financial targets. For this reason, there will not be more investments made to Hehku Kauppa.

Hehku Kauppa has today decided to start cooperation negotiations concerning all personnel regarding potential termination of the operations. Cooperation negotiations concern around 100 employees. In addition to corporate functions, Hehku Kauppa includes in total 19 stores and an online shop.

In the last quarter of 2018, Oriola will make a EUR 12-15 million provision related to Hehku assets and liabilities. The impact related to Hehku, and possible related future expenses will be recognized as adjusting items to EBIT. The provision will decrease Oriola’s reported earnings per share (EPS) by 0.06-0.07 euros.

Oriola Corporation
Robert Andersson
President and CEO

Further information:

Robert Andersson
President and CEO
Tel. +358 10 429 2109
Email: robert.andersson@oriola.com

Tuula Lehto
Group Communications Director
Tel. +358 40 5885 343
Email: tuula.lehto@oriola.com

Distribution:
Nasdaq Helsinki Ltd.
Key media

Released by:
Oriola Corporation
Corporate Communications
Orionintie 5
02200 Espoo
www.oriola.com