Tulikivi Corporation Half Year Financial Report 1-6/2016

Published 08/04/2016

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

- The Tulikivi Group’s second-quarter net sales were EUR 7.9 million (Q2/2015: EUR 8.5 million), the operating result was EUR 0.0 (-0.8) million and the result before taxes was EUR -0.2 (-0.9) million.
- For the review period as a whole, the Tulikivi Group’s net sales were EUR 14.2 million (EUR 14.7 million in H1/2015).
The operating result was EUR -1.3 (-3.3) million and the result before taxes EUR -1.7 (-3.6) million.
- Net cash flow from operating activities was EUR 0.1 (1.2) million for the second quarter and EUR -0.4 (-0.0) million for the review period.
- Order books at the end of the review period amounted to EUR 3.9 (4.4) million.
- Future outlook:  Net sales in 2016 are expected to be at the previous year´s level, and the operating profit is expected to improve year-on-year.  

Summary of the half year financial report 1-6/2016. The full half year financial report is attached to this release.

 Key financial ratios



Change, %




Change, %

Sales, MEUR








Operating profit/
loss, MEUR








Profit before tax,








income for the
period, MEUR








Earnings per
share,  Euro








Net cash flow
from operating
activities, MEUR








Equity ratio, %






Net indebtness
ratio,  %






Return on
investments, %









Comments by Heikki Vauhkonen, Managing Director

The second-quarter demand for Tulikivi’s products on the domestic market was slightly up on the previous year. Recovering low-rise housing construction and closer cooperation with the home-building industry have increased our market share and consequently the sales of fireplaces in Finland.

Market conditions continue to be challenging, however, due to the low level of low-rise housing construction, low heating energy prices and consumer uncertainty in purchasing decisions.

In Germany and France, the main markets in Central Europe, demand was still relatively weak. While net sales from fireplace exports to Germany remained at the 2015 level in the second quarter, they were considerably lower than the year before in the case of exports to France. Despite the improved economic conditions, no turn for the better can yet be discerned in the fireplace market. With respect to exports, sales efficiency measures are being targeted at Germany and France. The goal of these measures is to strengthen Tulikivi’s position in the sales catalogues of current dealers and to identify new dealers where necessary.

With regard to Russia, net sales were down in the second quarter but order books improved on the previous year.

In the second quarter the company’s incoming orders totalled EUR 7.6 (8.0) million. The order flow was up on the previous year in Finland. Conversely, the order flow from exports to Central Europe was down.

At the end of the review period as a whole, Tulikivi’s order books amounted to EUR 3.9 (4.4) million.

The measures taken last year to improve structural efficiency have increased the company’s profitability. As a result of improved sales margins, decreased fixed costs and lower depreciation, the company’s operating result for the review period improved by EUR 2.0 million compared with the previous year.

With improved profitability, the company’s net cash flow from operating activities for the review period was EUR 0.6 million higher than in the previous year.

Even though the operating environment is likely to remain challenging for the remainder of 2016, the downward trend in net sales is expected to bottom out thanks to the sales efficiency measures. Profitability is expected to improve for 2016 as a whole, due to the structural savings and production efficiency measures.


Board of Directors


Distribution: NASDAQ OMX Helsinki
Key media

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

ATTACHEMENT: Interim Report 1-6/2016