Tulikivi Corporation Half Year Financial Report 1-6/2018

Published 08/10/2018

Profitability continues to improve

- The Tulikivi Group’s second-quarter net sales were EUR 7.4 million (Q2/2017: EUR 7.8 million), the operating result was EUR 0.4 (0.3) million and the result before taxes was EUR 0.2 (0.1) million.
- For the review period as a whole, the Tulikivi Group’s net sales were EUR 13.5 million (EUR 13.7 million in H1/2017),
the operating result was EUR -0.2 (-0.6) million and the result before taxes EUR -0.6 (-1.0) million.
- Net cash flow from operating activities was EUR 0.5 (0.6) million in the second quarter and EUR 0.7 (0.7) million in the review period.
- Order books at the end of the review period amounted to EUR 3.4 (4.0) million.
- Sales of the new Karelia and Pielinen fireplace collections continued to develop well, both in exports and domestically
- Future outlook remains unchanged: Net sales are expected to increase in 2018, and the operating profit is expected to be positive.

Summary of the half year financial report 1-6/2018. The full half year financial report is attached to this release.

 Key financial ratios

  1-6/2018 1-6/2017

Change, %

1-12/2017 4-6/2018 4-6/2017

Change, %

Sales, MEUR

13.5 13.7


29.3 7.4 7.8


Operating profit/
loss, MEUR

-0.2 -0.6


-0.4 0.4 0.3


Profit before tax,

-0.6 -1.0


-1.2 0.2 0.1


income for the
period, MEUR

-0.6 -1.1


-1.3 0.2 -0.1


Earnings per
share,  Euro

-0.01 -0.02   -0.02 0.00 0.00  

Net cash flow
from operating
activities, MEUR

0.7 0.7   1.9 0.2 0.6  

Equity ratio, %

28.8 30.5   30.7      

Net indebtness
ratio,  %

141.4 135.7   135.3      

Return on
investments, %

-1.4 -4.4   -1.2 1.6 1.1  


Comments by Heikki Vauhkonen, Managing Director

Tulikivi’s operating result continued to improve in the second quarter. This is the fifth consecutive quarter of year-on-year improvement. We also succeeded in improving profitability despite the warm weather in spring in our principal markets, which reduced customers’ interest in fireplaces.

In Central Europe, the new Karelia and Pielinen collections have substantially increased dealers’ and consumers' interest towards Tulikivi products. This has enabled us to open new dealer locations and reactivate old ones. Thanks to these collections, the sales outlook has improved on the previous year.

The products in the collections 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.
In Russia, net sales in euros was lower in the first half than in 2017 mainly due to the weakening of the rouble against the euro.

In Finland, fireplace sales increased in the second quarter. Thanks to updated collections, changes to distribution channels and closer cooperation with the home-building industry, business has developed favourably despite a challenging market. These measures are expected to increase domestic sales in the second half of the year.

In the second quarter the company’s order flow was EUR 7.1 (7.6) million. Order intake for fireplaces and saunas increased in Finland. The reduction in order intake especially concerned heater cladding but fireplace exports and orders of interior stone products also declined slightly.

Tulikivi’s order books at the end of the review period amounted to EUR 3.4 (4.0) 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 0.4 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 half of the year is weaker than the second, in terms of both 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


Distribution: NASDAQ OMX Helsinki
Key media

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

ATTACHEMENT: Interim Report 1-6/2018