Tulikivi Corporation Half Year Financial Report 1-6/2020

Published 08/21/2020

Net sales on the previous year’s level, operating profit improves

- The Tulikivi Group’s second-quarter net sales were EUR 7.4 million (EUR 7.5 million, Apr–Jun 2019) and EUR 13.1 million (EUR 13.3 million, Jan–Jun 2019) in the review period.
- The Tulikivi Group's operating profit for the second quarter was EUR 0.5 (0.3) million, and the operating profit for the review period was EUR 0.0 (-0.4) million.
- The Tulikivi Group’s second-quarter profit before taxes was EUR 0.3 million (0.1 million) and EUR -0.4 (-0.8) million for the review period.
- Net cash flow from operating activities was EUR 0.6 (0.5) million in the second quarter and EUR 0.7 (0.6) million in the review period.
- Order books at the end of the review period stood at EUR 3.3 (3.6) 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 com-parable operating profit is expected to be positive.

 Key financial ratios

       1-6/20  1-6/19 Change, %  1-12/19 4-6/20 4-6/19 Change, %
Sales, MEUR     13.1 13.3 -1.3 28.7 7.4 7.5 -1.3

Operating profit/loss, MEUR

    0.0 -0.4 105.7 -0.8 0.5 0.3 61.2
Operating profit/loss without impairment loss, MEUR 0.0 -0.4 105.7 0.0 0.5 0.3 61.2
Profit before tax, MEUR     -0.4 -0.8 54.3 -1.5 0.3 0.1 409.7
Total comprehensive income for the period, MEUR -0.4 -0.8 49.4 -1.6 0.3 0.1 368.9
Earnings per share, Euro     -0.01 -0.01   -0.03 0.00 0.00  
Net cash flow from operating activities, MEUR 0.7 0.6   1.6 0.6 0.5  
Equity ratio, %     22.5 24.4   23.0      
Net indebtness ratio, %     206.0 173.3   200.1      
Return on investments, %     0.6 -3.1   -3.0 0.0 1.3  


Comments by Heikki Vauhkonen, Managing Director

As a result of the successful second quarter, the operating profit for the first half of the year was positive. The Covid-19 pandemic caused exceptional demand fluctuation in the second quarter. In April, the Covid-19 pandemic and the associated restrictive measures reduced the flow of orders especially from Central European countries. However, domestic and export orders recovered during the second quarter, and net sales almost regained the level of the previous year. The sales margin improved in the second quarter due to price increases and measures improving productivity. Fixed costs decreased as planned in the second quarter.

Finnish net sales of fireplaces were at the previous year's level in the first half of the year. Total net sales from fireplace exports decreased in the second quarter. However, considering the circumstances, net sales and market share 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 3.3 (3.6) million. In the second quarter the company’s order flow was EUR 7.1 (7.0) million.

The Covid-19 pandemic has increased consumers' interest in renovation, holiday homes and low-rise housing in both Finland and export countries. During the summer, it increased consumers' interest in Tulikivi products and strengthened the business outlook for the early autumn. In the longer term, however, sales performance may be negatively affected by the intensifying economic crisis resulting from the pandemic.

The company Nordic Talc Oy, founded in March 2020, 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


Distribution: NASDAQ OMX Helsinki
Key media

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

ATTACHEMENT: Interim Report 1-6/2020