Interim Report January-September 2014

Published 10/24/2014

- The Tulikivi Group’s third-quarter net sales were EUR 9.8 million (Q3/2013: EUR 12.1 million), the operating profit in the third quarter was EUR 0.2 (0.0) million and the result before taxes was EUR 0.0 (-0.3) million. The operating result before non-recurring expenses was EUR 0.5 (0.6) million.
- The Group’s net sales for the reporting period 1 January - 30 September 2014 were EUR 28.6 million (1 January – 30 September 2013: EUR 31.9 million), the operating result was EUR -2.2 (-2.5) million and the result before taxes was EUR -2.8 (-3.3) million. The reporting period operating result before non-recurring expenses was EUR -1.0 (-1.9) million.
- Net cash flow from operating activities was EUR -4.8 (0.2) million in the reporting period.
- Order books at the end of the period stood at EUR 4.2 (5.3) million.
- Future outlook: As a consequence of the weak market conditions, Tulikivi Corporation’s sales have not performed as well as expected. Net sales for 2014 are expected to total approximately EUR 40 million (EUR 43.7 million in 2013). The company expects to post an operating loss of about one million euros (EUR -4.3 million in 2013). The level of demand for Tulikivi products is closely linked to changes in consumer confidence and in the construction sector. The performance improvement programme that started in 2013 includes production and sales efficiency measures and cost-saving measures. The results of these measures will begin to show during the period 2014-2016.

Summary of the interim report 1-9/2014.  The full interim report is attached to this release.


Key financial ratios
Change, %
Sales, MEUR
Operating profit/
loss, MEUR
Operating result before non-recurring expenses, MEUR
-1.0 -1.9 47.0 -1.4 0.5  
Profit before tax,
Total comprehensive
income for the period,
Earnings per share,
Net cash flow from
operating activities,
Equity ratio, %
Net indebtness
ratio, %
Return on
investments, %
 - 7.9
Comments by Heikki Vauhkonen, Managing Director:
 In Finland, net sales declined in the third quarter due to weakened consumer confidence and the low volume of low-rise housing construction starts and renovation projects. Net sales in Central Europe were also down as a result of the uncertain financial situation and weak fireplace sales in the spring. However, despite the challenging market situation, net sales in Russia increased.

In early autumn, the completely renewed ceramic fireplace collection was launched, and it was well received by both consumers and dealers. Net sales also continued to grow for the company’s other new products, such as saunas and the new-generation Hiisi fireplace collection, in spite of the challenging market.

The progress made with the performance improvement programme in the third quarter helped to improve the company’s relative profitability on the previous year’s level. In addition to savings in fixed costs, the performance improvement programme includes a reorganisation of production. The centralisation of the soapstone fireplace production implemented earlier in the spring achieved the profitability levels set as targets. The profitability targets for the reorganisation of ceramic fireplaces will be met during the last quarter. Thus the measures taken will improve profitability in the second half of the year.

The flow of orders from Finland in the third quarter was weaker than the previous year as a result of further weakened consumer confidence. The flow of orders from the export areas in the third quarter was at the same level as the previous year. Tulikivi’s order books at the end of the reporting period amounted to EUR 4.2 (5.3) million.

Owing to the weak market conditions, the impact of the sales efficiency measures that form part of the performance improvement programme will be felt more slowly than anticipated in 2015 and 2016. In 2015, further measures will be taken to increase exports and improve profitability.


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

ATTACHMENT: Interim Report 1-9/2014