Interim report 1-3/2017

Published 04/28/2017

A new soapstone collection was launched and profitability improved

- The Tulikivi Group’s first-quarter net sales were EUR 5.9 million (EUR 6.3 million in Q1/2016), the operating result in the first quarter was EUR -0.9 (-1.3) million and result before taxes EUR -1.1 (-1.5) million.
- Net cash flow from operating activities in the first quarter was EUR 0.2 (-0.5) million.
- Order books at the end of the review period amounted to EUR 4.2 (4.6) million.
- The new soapstone fireplace collection was very well received on the market
- Future outlook: Net sales in 2017 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 1-3/2017. The full interim report is attached to this release.


Key financial ratios
1-3/2017 1-3/2016
Change, %
Sales, MEUR
5.9  6.3
Operating profit/loss, MEUR
-0.9 -1.3
Profit before tax, MEUR
-1.1  -1.5 27.5 -2.1
Total comprehensive income for the period, MEUR -1.0  -1.5
Earnings per share, Euro -0.02  -0.03
Net cash flow from operating activities, MEUR 0.2  -0.5   2.0
Equity ratio, %
30.5 33.5   33.4
Net indebtness ratio, %
138.8 131.8   125.0
Return on investments, % -13.0  -17.1

Comments by Heikki Vauhkonen, Managing Director:

Export sales of Tulikivi products increased in the first quarter. The new Karelia collection, launched in Belgium in February, has clearly increased dealers’ and consumers interest in Tulikivi products. As a result of the sales efficiency drive in Central Europe and the new collection, the sales outlook is better for the remainder of the year than it was a year before. Launches will be expanded to all main markets in the second quarter of the year. More extensive marketing to consumers of the new Karelia collection will start in the second half of the year.

The goal of the sales performance drive has been to strengthen Tulikivi’s position in the sales catalogues of current dealers and to identify new dealers where necessary.

The order intake in and net sales in Russia grew on the previous year due to Russia’s improved economy.

In Finland, sales of fireplaces for new homes increased but demand in the renovation market was down from the previous year and as a result, sales in Finland declined in the first quarter.

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

In the first quarter, the company’s order intake was EUR 6.9 (6.8) million. Order intake increased in fireplace exports, interior design stones and saunas. Order intake in heater lining stones and also in renovation sales of fireplaces in Finland decreased.

Order books at the end of the reporting period amounted to EUR 4.2 million (4.6).

As a result of the efficiency drive, 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 0.4 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 new soapstone fireplace collection and the sales efficiency measures. Profitability is expected to improve in 2017 thanks to gains in cost-efficiency.

The soapstone reserves available to the company increased by 1.6 million cubic metres when the Finnish Safety and Chemicals Agency granted an extension permit to the Vaaralampi mining con-cession in Juuka on 27 March 2017. The additional reserves correspond to more than 10 years of stone use. A preliminary proposal has been made to exploit the talc reserves in the mining concession in conjunction with the Suomussalmi lining stone plant. The project is different from conventional mining projects in that the reserves are located in conjunction with an existing concession and industrial infrastructure. The project could therefore be much quicker to complete than the usual projects and would involve fewer uncertainties. More investigation and further studies will be carried out in the next few months.


Board of Directors

Distriburion: Nasdaq Helsinki
Key media

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

ATTACHEMENT: Interim Report 1-3/2017