Financial Statement Release Jan-Dec 2018

Published 02/15/2019

Comparable result on the 2017 level and talc project making progress

- The Tulikivi Group’s fourth-quarter net sales were EUR 8.7 million (EUR 8.6 million, Q4/2017).
- The Tulikivi Group’s fourth-quarter operating result was EUR -0.5 (0.0) million and the result before taxes was EUR -0.7 (-0.2) million, including a goodwill impairment loss of EUR -0.5 (0.0) million. The Tulikivi Group’s comparable fourth-quarter operating result was EUR 0.0 (0.0) million and EUR -0.2 (-0.2) million before taxes.
- The Tulikivi Group’s net sales were EUR 28.6 million in 2018 (EUR 29.3 million in 1-12/2017). The operating result was EUR -1.0 (-0.4) million in 2018 and the result before taxes was EUR -1.8 (-1.2) million, including a goodwill impairment loss of EUR -0.5 (0.0) million. Comparable operating result was EUR -0.5 million (-0.4) in 2018 and EUR -1.3 million (-1.2) before taxes.
- Net cash flow from operating activities was EUR 0.5 (0.9) million in the fourth quarter and EUR 1.6 (1.9) million in the financial year.
- The year-end order books stood at EUR 3.0 (2.9) million.
- Sales of the new Karelia and Pielinen fireplace collections continued to develop well, both in exports and domestically.
- Future outlook: Net sales are expected to increase in 2019, and the comparable operating profit is expected to be positive.

Summary of the financial statement release 01-12/2018. The full financial statements release is attached to this release.

Key financial ratios


1-12/2018 1-12/2017
Change, %
10-12/2018 10-12/2017
Change, %
Sales, MEUR
28.6 29.3 -2.4 8.7 8.6
Operating profit/loss, MEUR
-1.0 -0.4 -179.3 -0.5 0.0
Operating profit/loss without impairment loss, MEUR -0.5 -0.4 -40.9 0.0 0.0 385.7
Profit before tax, MEUR
-1.8 -1.2
-0.7 -0.2
Total comprehensive income for the period, MEUR
-1.8 -1.3
-0.7 -0.2 -293.2
Earnings per share/Euro
-0.03 -0.02
-0.01 0.00
Net cash flow from operating activities, MEUR
1.6 1.9
1.0 0.9
Equity ratio,%
27.4 30.7
Net indebtness ratio, %
156.6 135.3
Return on investments,%
-3.8 -1.2
-1.9 0.0


Comments by Heikki Vauhkonen, Managing Director:

The sales growth of the new Karelia and Pielinen collections continued to develop well in the last quarter but sales of traditional and lining stone products were lower than had been anticipated.

The overall fireplace market in our principal market areas decreased in 2018.

Export sales of Tulikivi products grew in the Central European and Scandinavian markets, however, thanks to the new collections. In Russia, the biggest export country, net sales in euros was at the 2017 level despite the weakening of the rouble against the euro.

Fireplace sales in Finland declined because low-rise housing construction did not reach the level of growth forecasted and the sales of fireplaces in the renovation market fell.

Net sales from saunas and interior stones continued to grow in the fourth quarter. Net sales were increased by the good demand for electric sauna heaters and the successful sales of interior stones to project sites.

Due to the decline in net sales in 2018, the sales margin decreased from 2017. A decrease in inventories had a negative effect on profitability of EUR 1.2 million. We were able to decrease fixed costs as planned.

In Central Europe, the new Karelia and Pielinen fireplace collections continued to significantly increase dealers’ and consumers' interest in Tulikivi products. This has enabled us to open new dealer locations and reactivate old ones. These collections have increased our market share in Central Europe.

A new Saramo model with a horizontal door and the Senso fireplace controller have been added to the Karelia collection. The Senso makes it easier to use the fireplace easier and reduces emissions. In addition, three new door types were launched in the popular Pielinen collection in the first quarter of 2019.
In the fourth quarter, the company’s order intake was EUR 8.4 (8.3) million.

The company’s order books amounted to EUR 3.0 (2.9) million at the end of the financial year.

The results of the studies conducted in the Suomussalmi talc deposit project in 2018 exceeded our expectations. As a result of the JORC report, the size of the deposit has been increased to 12 million tonnes, making it the largest known talc deposit in Finland. The studies and cash flow models carried out as part of the studies have confirmed our view that if utilised the deposit could be profitable. The project has also prompted so much interest among potential buyer candidates and partners that in October 2018 the company appointed Initia Ltd to provide financial advice on the sale of the deposit. The process to sell the deposit is proceeding despite delays in the JORC report.

The new fireplace collections have been very well received in Finland and abroad. Low-rise con-struction is not expected to increase significantly in Finland despite the good general economic situation. We are continuing our efforts to enhance sales efficiency in Finland to increase renovation sales.

The highly successful development work on the Karelia and Pielinen collections provides us with an opportunity to increase our market share and profitability in both Finland and exports in 2019. 


Board of Directors

Distribution: NASDAQ OMX Helsinki
Key media

Additional information:
- Heikki Vauhkonen, Managing Director, tel. +358 207 636 555

Attachment:  Tulikivi Corporation´s Financial Statements Release Jan-Dec 2018