Interim report 1-3/2020

Published 05/08/2020

- The Tulikivi Group’s first-quarter net sales were EUR 5.7 million (EUR 5.8 million, 1–3/2019).
- The Tulikivi Group’s first-quarter operating profit was EUR -0.5 (-0.7) million and the profit before taxes was EUR -0.7 (-0.9) million.
- 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 4.4 (4.5) million.
- Nordic Talc Oy was established for exploiting the talc reserves in Suomussalmi.
- Future outlook: Net sales are expected to amount to EUR 27–29 million in 2020, and the comparable operating profit is expected to be positive

 Key financial ratios

1-3/20 1-3/19
Change, %
Sales, MEUR
5.7 5.8


Operating profit/loss, MEUR
-0.5 -0.7


Operating profit/loss without impairment loss, MEUR -0.5 -0.7 32.0 0.0
Profit before tax, MEUR
-0.7 -0.9 20.8 -1.5
Total comprehensive income for the period, MEUR -0.7 -0.9
Earnings per share, Euro -0.01 -0.01
Net cash flow from operating activities, MEUR 0.1 0.1   1.6
Equity ratio, %
21.6 24.2   23.0
Net indebtness ratio, %
219.7 174.5   200.1
Return on investments, % -8.0 -10.9

Comments by Heikki Vauhkonen, Managing Director:

Net sales in the first quarter were at a low level, in line with normal seasonality in the sector. Net sales grew in Finland, but the restrictions imposed in Central Europe because of the Covid-19 pandemic postponed deliveries somewhat, due to which net sales fell slightly from the previous year’s figure. The sales margin improved in the first quarter due to price increases and measures improving productivity. Fixed costs decreased as planned in the review period.

Net sales from fireplaces grew in Finland as a result of higher renovation sales and redesigned product ranges. The sales of fireplaces for new buildings were slightly lower than in the previous year. We are continuing our efforts to enhance sales efficiency in Finland to further increase renovation sales. The sales of saunas and interior decoration stone products have developed favourably in the first months of the year.

In the first quarter, net sales continued to develop favourably in the largest export countries, Germany and Russia.

Tulikivi’s order books at the end of the review period amounted to EUR 4.4 (4.4) million. In the first quarter, the company’s order intake was EUR 7.3 (7.2) million.

The Covid-19 pandemic will decrease second-quarter sales particularly in France, Belgium, Italy and Germany, where curfews have prevented dealers from conducting sales for the past several weeks. Similarly, the Covid-19 pandemic has had an impact on other markets, where the activities and movement of people have been restricted.

In Finland, the effects of the Covid-19 pandemic have so far been more moderate. In part, the impact has even been positive as households have increased renovation projects, but on the other hand, cancellations of fairs and marketing events have made it more difficult to acquire new customers. Tulikivi has put more resources than before into digital marketing in 2020.

In the long term, it is expected that the number of new buildings will decrease but the number of renovation projects in homes and holiday homes will increase. The sales trend will be impacted by the severity of the economic crisis arising from the coronavirus crisis as well as the effectiveness of stimulus measures.

Due to the uncertainty in net sales, operations have been adjusted by laying off production and office staff and postponing development projects.  

In March 2020, the Board of Directors of Tulikivi Corporation decided to establish Nordic Talc Oy. The company’s objective is the industrial exploitation of Tulikivi’s talc deposits in the Suomussalmi mining district. At the same time, an advisory board of professionals in the field of industrial minerals and mining was appointed for Nordic Talc Oy. It includes Jan Ekblom, Mikael von Hertzen, Eeva Ruokonen and Tarmo Tuominen.

Currently the company is planning a feasibility study of the Suomussalmi talc project, the purpose of which is to further specify the project's profitability, environmental and mining plans for industrial operations. At the same time, Tulikivi is exploring opportunities to attract outside financing and investors to start and develop Nordic Talc Oy’s operations for industrial exploitation.


Board of Directors

Distriburion: Nasdaq Helsinki
Key media

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