Interim report 1-3/2019

Published 05/03/2019

Net sales decreased but sales of new products grew

- The Tulikivi Group’s first-quarter net sales were EUR 5.8 million (EUR 6.1 million, Q1/2018). The Tulikivi Group’s first-quarter operating result was EUR -0.7 (-0.6) million and EUR -0.9 (-0.8) million before taxes.
- Net cash flow from operating activities in the first quarter was EUR -0.1 (0.1) million.
- Order books at the end of the review period stood at EUR 4.5 (4.1) million.
- Sales of the new Karelia and Pielinen fireplace collections continued to develop well, both in exports and domestically.
- The project for the sale of the talc deposits in Suomussalmi is proceeding as planned
- Future outlook: Net sales are expected to increase in 2019, and the comparable operating profit is expected to be positive.

Summary of the interim report 1-3/2019. The full interim report is attached to this release.

 Key financial ratios

1-3/2019 1-3/2018
Change, %
Sales, MEUR
5.8 6.1
Operating profit/loss, MEUR
-0.7 -0.6
Operating profit/loss without impairment loss, MEUR -0.7 -0.6 -15.6 -0.5
Profit before tax, MEUR
-0.9 -0.8 -5.7 -1.8
Total comprehensive income for the period, MEUR -0.9 -0.8
Earnings per share, Euro -0.01 -0.01
Net cash flow from operating activities, MEUR -0.1 0.1   1.6
Equity ratio, %
24.2 28.1   27.4
Net indebtness ratio, %
174.5 146.7   156.6
Return on investments, % -10.9 -9.0

Comments by Heikki Vauhkonen, Managing Director:

We continued to see good sales growth for the new Karelia and Pielinen collections in the first quarter.  Export sales of Tulikivi products grew in the Central European and Scandinavian markets, thanks to the new collections. The favourable trend in the German market has been reflected in demand for Tulikivi products as well as heater lining and cladding stones. Thanks to the positive development, Germany became our largest export market. In Russia, net sales in euros were at the previous year’s level.

Fireplace sales in Finland declined because low-rise housing construction did not reach the level of growth forecasted. We are continuing our efforts to enhance sales efficiency in Finland to increase renovation sales. Net sales from saunas grew in the first quarter. The deliveries of interior stone products declined due to a smaller number of project sites.

Tulikivi’s order books at the end of the review period amounted to EUR 4.5 (4.1) million. In the first quarter, the company’s order intake was EUR 7.2 (7.2) million.

Net sales decreased by about 4% in the first quarter mostly due to deliveries being more weighted towards the second quarter than a year ago. Due to the decline in net sales, the sales margin for the review period decreased from the figure a year ago. Fixed costs decreased as planned in the first months of the year. The company will also aim to implement additional savings of EUR 0.6 million to improve profitability through the rest of the year.

The new Karelia and Pielinen fireplace collections continued to significantly increase dealers’ and consumers’ interest in Tulikivi products in Central Europe. This has enabled us to open new dealer locations and reactivate old ones.  These collections have increased our market share in Central Europe.

The Karelia collection was supplemented with a new Saramo model with a horizontal door and a Senso digital fireplace controller that makes it easier to use the fireplace and further reduces its already-low emissions. Deliveries of the three new door types launched in the Pielinen collection started in the second quarter.

The JORC study being conducted in connection with the Suomussalmi talc project has proceeded during the first months of this year. The last laboratory tests for the study are expected to be completed in the next few weeks, after which the geological model for the deposit can be finalised and the profitability assessment for the ore study can be carried out. The project prompted so much interest among potential buyer candidates that in September 2018 the company appointed Initia Ltd to provide financial advice on the sale of the deposit. The process to sell the deposit is proceeding despite delays in the JORC report.


Board of Directors

Distriburion: Nasdaq Helsinki
Key media

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