Financial Statement Release Jan-Dec 2016

Published 02/08/2017

Profitability improves, higher net sales in Finland

- The Tulikivi Group’s fourth-quarter net sales totalled EUR 8.5 million (EUR 9.0 million Q4/2016), the fourth-quarter operating result was EUR -0.1 (0.1) million and the profit before taxes was EUR -0.3 (-0.3) million.
- The 2016 net sales of the Tulikivi Group were EUR 30.5 million (EUR 32.0 million Jan-Dec/2015), the operating result
was EUR -1.4 (-2.9) million and the result before taxes EUR -2.1 (-3.9) million.
- Net cash flow from operating activities during the financial year was EUR 2.0 (0.8) million.
- Year-end order books were at EUR 3.2 (3.9) million.
- Future outlook: Net sales in 2017 are expected to be at the previous year’s level, and the oper-ating result is expected to improve year-on-year.

Summary of the financial statement release 01-12/2016. The full financial statements release is attached to this release.

Key financial ratios


1-12/2016 1-12/2015
Change, %
10-12/2016 10-12/2015
Change, %
Sales, MEUR
30.5 32.0 -4.6 8.5 9.0
Operating profit/loss, MEUR
-1.4 -2.9 53.5 -0.1 0.1
Profit before tax, MEUR
-2.1 -3.9
-0.3 -0.3
Total comprehensive income for the period, MEUR
-2.0 -3.8
-0.4 -0.2 -58.7
Earnings per share/Euro
-0.03 -0.06
0.00 0.00
Net cash flow from operating activities, MEUR
2.0 0.8
2.1 0.7
Equity ratio,%
33.4 36.9
Net indebtness ratio, %
125.0 113.4
Return on investments,%
-4.3 -7.7
-0.3 0.4


Comments by Heikki Vauhkonen, Managing Director:

The sales of Tulikivi products increased in Finland in 2016. Recovering low-rise housing construc-tion and closer cooperation with the home-building industry have increased our market share and consequently the sales of fireplaces in Finland.

However, market conditions in fireplace sales continue to be challenging in Finland compared with the peak years due to the low level of low-rise housing construction, low heating energy prices and consumer uncertainty in purchasing decisions.

In Finland, to boost sales in the Helsinki metropolitan area, additional members of staff have been recruited within sales to professionals and consumers. These investments increased the order intake especially in sauna products and interior stone products.

In Germany and France, the main markets in Central Europe, market conditions continued to be relatively weak in the autumn. In the final quarter, net sales from fireplace exports to France and Germany were also considerably lower than the year before. Despite the improved economic conditions and increased construction activity, there is yet no clear improvement in sight in the fireplace market. In exports, sales efficiency measures are being targeted primarily at Germany and France. The goal of these measures is to strengthen Tulikivi’s position in the sales catalogues of current dealers and to identify new dealers where necessary.

In Russia, net sales continued to grow on the previous year in all product groups.

In February the company will introduce its new soapstone collection at the Batibouw fair in Belgium. The collection is based on a new kind of surface finish of soapstone and high quality of design. At the same time the company invested about EUR 0.5 million in an advanced finishing facility.

In the fourth quarter, the company’s order intake was EUR 8.4 (8.2) million. Order intake grew in Finland, but declined in exports, with fewer incoming orders from France and Germany.

Tulikivi’s order books at the end of the review period amounted to EUR 3.2 (3.9) million.

As a result of the measures taken last year to improve structural efficiency, the company’s profitability improved on the previous year. Due to decreased fixed costs and lower depreciation, the company’s operating result for the review period improved by EUR 1.5 million compared to the previous year.

Even though the operating environment for exports is likely to remain challenging in 2017, the downward trend in net sales is expected to end thanks to the sales efficiency measures and the new soapstone fireplace collection. Profitability is expected to improve in 2017 due to the 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 2016