Interim report 1-3/2015

Published 04/29/2015

Demand exceptionally weak, additional saving measures launched

- The Tulikivi Group’s first-quarter net sales were EUR 6.2 million (EUR 8.3 million in Q1/2014), the operating result in the first quarter was EUR -2.5 (-1.6) million and the result before taxes EUR -2.7 (-1.8) million.
 The first-quarter operating result before non-recurring expenses was EUR -2.3 (-1.2) million.
- Net cash flow from operating activities was EUR -2.2 (-2.4) million in the reporting period.
- Order books at the end of the period amounted to EUR 5.5 (6.1) million.
- Future outlook: Due to an uncertain market outlook, the company will not issue a net sales or profit outlook for the 2015 financial year.

Summary of the interim report 1-3/2015. 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,
Profit before tax, MEUR
-46.3 -3.3
Total comprehensive income for the period, MEUR -2.6
Earnings per share, Euro -0.04
Net cash flow operating activities, MEUR -2.2
Equity ratio,
Net indebtness ratio, %
Return on investments
, %

Comments by Heikki Vauhkonen, Managing Director:

Tulikivi Group’s net sales in the first quarter were exceptionally low. In Finland demand for fireplaces and interior stone products was weak as a result of the low number of construction and renovation projects. After a weak autumn season in Central Europe, the inventories of our main customers were at a high level and the number of new deliveries was low in the first quarter. Net sales in Russia were also low at the start of the year as a result of the sharp drop in the value of the rouble in December.
Europe’s persistent recession in the construction sector has increased price competition in the fireplace business. In France, the government relaunched its programme to support energy-efficient construction, which has increased consumer interest in our products. The company’s flow of orders has improved from the level in January, but as a whole the market situation still remains uncertain and so far there are no signs of its improvement.

Order books at the end of the period amounted to EUR 5.5 (6.1) million.

Due to the weak demand, the company will cut fixed costs by EUR 2.5 million this year, which is about EUR 2 million more than the previous target. Furthermore, the company will release working capital by decreasing its inventory levels. As products were not manufactured for inventories as they had been in previous years, the lower capacity utilisation of factories also contributed to lower production profitability in the first quarter.

Of the new product groups, saunas achieved favourable net sales. The updated range of ceramic products was also positively received, and as a result Tulikivi concluded a number of agreements in the home-building industry in the past months.


Board of Directors

Distribution: NASDAQ OMX Helsinki
Key media

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

ATTACHEMENT: Interim Report 1-3/2015