Interim report 1-3/2016

Published 04/28/2016

Net sales at last year’s level, operational efficiency measures progress as planned

- The Tulikivi Group’s first-quarter net sales were EUR 6.3 million (EUR 6.2 million in Q1/2015), the operating result in the first quarter was EUR -1.3 (-2.5) million and the result before taxes EUR -1.5 (-2.7) million. The first-quarter operating result before non-recurring expenses was EUR -1.3 (-2.3) million.
- Net cash flow from operating activities in the first quarter was EUR -0.5 (-2.2) million.
- Order books at the end of the period amounted to EUR 4.6 (5.5) million.
- Future outlook: Net sales in 2016 are expected to be at the previous year’s level, and the oper-ating profit is expected to improve year-on-year.

Summary of the interim report 1-3/2016. The full interim report is attached to this release.


Key financial ratios
Change, %
Sales, MEUR


Operating profit/loss, MEUR
-1.3 -2.5
Operating profit/loss before non-recurring expenses,MEUR
 -1.3 -2.3
Profit before tax, MEUR
 -1.5 -2.7 43.8 -3.9
Total comprehensive income for the period, MEUR  -1.5 -2.6
Earnings per share, Euro  -0.03 -0.04
Net cash flow from operating activities, MEUR  -0.5 -2.2   0.8
Equity ratio, %
33.5 36.1   36.9
Net indebtness ratio, %
131.8 120.7   113.4
Return on investments, %  -17.1 -26.7

Comments by Heikki Vauhkonen, Managing Director:

In the first quarter, demand for Tulikivi products was similar to that of last year, both domestically and in exports.

Improved cooperation with the home-building industry has led to an increased market share for Tulikivi in Finland and deliveries of fireplaces to the new construction market have grown despite challenging market conditions.

The challenging conditions on the market have been caused by a 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.

Conditions in Germany and France, the main markets in Central Europe, continue to be relatively poor. Net sales from fireplace exports to Germany and France during the first quarter were at last year’s level but a turn for the better is not in sight in the fireplace market, despite economic improvement.

In Russia, net sales declined in the first quarter but order books developed favourably on last year.

In the first quarter, the company’s flow of orders was EUR 6.8 (7.0) million. The order flow was better in Finland than it was a year ago. In exports the order flow slowed in lining stone products and from Central-European markets.

Tulikivi’s order books amounted to EUR 4.6 (5.5) million at the end of the review period.

As a result of the adjustment measures implemented in 2015, the company’s profitability improved year-on-year in the first quarter. Following the growth in net sales, an improved sales margin and lower fixed costs and depreciation/amortisation, the operating result improved EUR by 1.2 million.

As a result of better profitability and lower working capital, the company’s net cash flow from operating activities was EUR 1.7 million more than in 2015.

Even though the operating environment in exports is likely to remain challenging in 2016, the company believes that net sales will no longer decrease thanks to its successful sales efficiency measures. The company expects its profitability to improve in 2016 as a result of structural savings and production efficiency measures.


Board of Directors

Distriburion: Nasdaq Helsinki
Key media

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

ATTACHEMENT: Interim Report 1-3/2016