Financial Statement Release Jan-Dec 2015

Published 02/05/2016

Sales continued to be low, operational efficiency measures progressed as planned

- The Tulikivi Group’s fourth-quarter net sales totalled EUR 9.0 million (EUR 10.7 million for Q4/2014). The operating result was EUR 0.1

(-0.2) million, and the profit before taxes was EUR -0.3 (-0.5) million. The fourth-quarter operating result before non-recurring expenses was EUR 0.1 (0.0) million.

- The Tulikivi Group’s net sales in 2015 totalled EUR 32.0 million (EUR 39.3 million in 2014). The operating result was EUR -2.9 (-2.4) million, and the result before taxes was EUR -3.9 (-3.3) million. The operating result before non-recurring expenses in 2015 was EUR -2.2 (-1.0) million.

- Net cash flow from operating activities during the financial year was EUR 0.8 (-2.1) million.

- The year-end order books stood at EUR 3.9 (4.2) million.

- Future outlook: Net sales in 2016 are expected to be at the previous year’s level, and the operating profit is expected to improve year-on-year.

Summary of the financial statement release 01-12/2015. The full financial statements release is attached to this release.

Key financial ratios


1-12/2015 1-12/2014
Change, %
10-12/2015 10-12/2014
Change, %
Sales, MEUR
32.0 39.3 -18.7 9.0 10.7
Operating profit/loss, MEUR
-2.9 -2.4 -20.2 0.1 -0.2
Operating profit/loss before non-recurring expenses, MEUR -2.2 -1.0 -118.7 0.1 0.0 594.7
Profit before tax, MEUR
-3.9 -3.3
-0.3 -0.5
Total comprehensive income for the period, MEUR
-3.8 -2.6
-0.2 -0.4 35.7
Earnings per share/Euro
-0.06 -0.04
0.00 0.00
Net cash flow from operating activities,
0.8 -2.1
0.7 2.7
Equity ratio,%
36.9 39.0
Net indebtness ratio, %
113.4 89.8
Return on investments,%
-7.7 -5.4
0.4  -0.2


Comments by Heikki Vauhkonen, Managing Director:

The demand for Tulikivi products was slightly lower than expected in the fourth quarter, but re-mained similar to before.

As a result of closer cooperation with the home-building industry, deliveries of fireplaces to the new construction market have increased despite the challenging market conditions.

The challenging conditions were caused by the modest level of low-rise housing construction, low heating energy prices and consumer uncertainty in purchasing decisions.

Estimates indicate that low-rise housing construction has returned to growth in Finland, but there is no certainty of a more permanent change yet.

In Germany and France, the main markets in Central Europe, the market conditions improved during the second half of the year in comparison to the first half. Net sales from fireplace exports to Germany and France in the fourth quarter were at the same level as in the previous year. The most significant decrease in net sales was recorded in Russia, as a result of difficult economic circumstances. Sales from Tulikivi’s own sales office in Moscow performed well and reduced the shortfall in net sales in Russia.

In the fourth quarter, the company’s order intake was EUR 8.2 (9.3) million. Its order intake in Finland was lower than in the previous year, due to weak demand in the renovation market. In exports, the order intake from Russia and Belgium decreased.

Tulikivi’s order books at the end of the reporting period amounted to EUR 3.9 (4.2) million.

The company continued to improve its operational efficiency because of decreasing net sales. It managed to cut its fixed costs by EUR 2.3 million, or around 20%, compared to the previous year’s level.

As a result of the adjustment measures implemented during the fourth quarter, the company’s profitability improved year-on-year, and its cash flow from operating activities for the fourth quarter was positive, at EUR 0.7 million.  Even though the operating environment is likely to remain challenging in 2016, the company estimates that, as a result of successful sales efficiency measures, its net sales will no longer decrease. The company expects its profitability to improve in 2016 as a result of structural savings and production efficiency measures.


Board of Directors

Distribution: NASDAQ OMX Helsinki
Key media

Additional information: Tulikivi Corporation, FIN-83900 Juuka, Finland,
tel. +358 207 636 000,
- Heikki Vauhkonen, Managing Director, tel. +358 207 636 555

Enclosure:  Tulikivi Corporation´s Financial Statements Release Jan-Dec 2015