Interim report 1-3/2018

Published 04/27/2018

Higher net sales and better profitability

- The Tulikivi Group’s first-quarter net sales were EUR 6.1 million (EUR 5.9 million in Q1/2017), the operating result in the first quarter was EUR -0.6 (-0.9) million and result before taxes EUR -0.8 (-1.1) million.
- Net cash flow from operating activities in the first quarter was EUR 0.1 (0.2) million.
- Order books at the end of the review period amounted to EUR 4.1 (4.2) million.
- Sales of the new Karelia and Pielinen fire place collections developed well both in exports and domestically
- Future outlook: Net sales are expected to increase in 2018, and the operating profit is expected to be positive.

Summary of the interim report 1-3/2018. The full interim report is attached to this release.

 Key financial ratios

1-3/2018 1-3/2017
Change, %
Sales, MEUR
6.1 5.9
Operating profit/loss, MEUR
-0.6 -0.9
Profit before tax, MEUR
-0.8 -1.1 26.1 -1.2
Total comprehensive income for the period, MEUR -0.8 -1.0
Earnings per share, Euro -0.01 -0.02
Net cash flow from operating activities, MEUR 0.1 0.2   1.9
Equity ratio, %
28.1 30.5   30.7
Net indebtness ratio, %
146.7 138.8   135.3
Return on investments, % -9.0 -13.0

Comments by Heikki Vauhkonen, Managing Director:

Net sales began to grow in the final quarter of 2017 and this growth continued in the first quarter of the current year. In Central Europe, the new Karelia and Pielinen collections have substantially increased dealers’ and consumers' interest towards Tulikivi products. Thanks to these collections, the sales outlook has improved on the previous year.

The products in the collection are based on modern Scandinavian design and feature a new soapstone surface finish technique. The Pielinen products are compact and easy to install. They are particularly well suited for the Central European market, as well as markets where there is no expertise in installing heat-retaining fireplaces.
Order intake and net sales increased in Russia partly thanks to improvements made to the distribution channel.

In Finland, sales of fireplaces for new homes increased in the first quarter but in the renovation market sales declined. The Finnish distribution channel was renewed in late 2017, enabling us to increase the number of active sales offices during the first quarter of 2018. The changes are expected to increase domestic sales in the rest of the year.

In the first quarter, the company’s order intake was EUR 7.2 (6.8) million. Order intake increased for fireplaces, interior design stones and saunas. Order intake decreased for stove liner stones and fireplaces in Finland.

Tulikivi’s order books at the end of the review period amounted to EUR 4.1 (4.2) million.

In addition to efficiency measures, the focus of demand on the new Karelia collection has improved profitability. Due to improved profitability, decreased fixed costs and lower depreciation, the company’s operating result for the review period improved by EUR 0.3 million compared with the previous year.

The new fireplace collections have been very well received in Finland and abroad. In Finland, the significantly improved consumer confidence is expected to increase small house construction. We are continuing our efforts to enhance sales efficiency to increase renovation sales.

Due to seasonal fluctuation in fireplace sales, the first quarter is the weakest quarter both in terms of net sales and operating profit.

The highly successful development work on the Karelia and Pielinen collections provides an opportunity to increase net sales and profitability in 2018 in both Finland and exports.


Board of Directors

Distriburion: Nasdaq Helsinki
Key media

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