Tulikivi Corporation Half Year Financial Report 1-6/2021

Published 08/20/2021

Higher net sales, better operating profit and stronger order books

- The Tulikivi Group’s net sales were EUR 9.3 million (EUR 7.4 million, 4–6/2020) in the second quarter and EUR 15.8 million (EUR 13.1 million, 1–6/2020) in the review period.
- The Tulikivi Group's operating profit was EUR 1.1 (0.5) million in the second quarter and EUR 1.1 (0.0) million in the review period.
- The Tulikivi Group’s profit before taxes was EUR 1.0 million (0.3 million) in the second quarter and EUR 0.8 (-0.4) million in the review period.
- Net cash flow from operating activities was EUR 1.1 (0.6) million in the second quarter and EUR 1.2 (0.7) million in the review period.
- Order books stood at EUR 4.7 (3.3) million at the end of the review period.
- The feasibility study being carried out by Tulikivi’s subsidiary Nordic Talc is making progress.
- Future outlook: Net sales are expected to be between EUR 32 and 35 million, and the comparable operating profit is expected to improve substantially.



Comments by Heikki Vauhkonen, Managing Director:

The company’s order intake increased 35 per cent in the second quarter and totalled EUR 9.6 (7.1) million. The demand for the new Karelia and Pielinen collections was particularly strong in Central Europe and Finland. The change in remote working habits due to the Covid-19 pandemic has increased consumers' interest in renovation, holiday homes and low-rise housing in both Finland and export countries. The growth in sales was also attributable to successful development of online sales, an updated renovation concept and the streamlining of distribution channels on the export markets. The order intake that significantly improved in the first quarter of the year means that it will be possible to achieve a higher year-on-year net sales growth and profitability than in previous years. Tulikivi’s order books at the end of the review period amounted to EUR 4.7 (3.3) million.

Profitability improved thanks to higher net sales, price increases and successful productivity measures. The steep rise in the price of steel is reflected in the prices of the components to be procured, but the situation is balanced by the fact that the company's operations are based to a significant extent on the utilisation of its own soapstone reserves in Finland.

Tulikivi Corporation’s subsidiary Nordic Talc Oy has made progress in its 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. In the second quarter, drilling and rock mechanics surveys were carried out to improve the accuracy of the plans.

According to a statement issued by the Kainuu Centre for Economic Development, Transport and the Environment (ELY centre) in July in the environmental impact assessment (EIA) procedure, Nordic Talc Oy's assessment programme fulfils the content requirements of the EIA procedure. In its statement, the ELY centre for Kainuu also proposed specifications to the programme, which Nordic Talc Oy will take into account in the further planning of the project.

In the next phase, Nordic Talc Oy will compile an environmental impact assessment report on which the ELY centre for Kainuu will issue a reasoned conclusion on the significant environmental impacts of the project. The environmental impact assessment report and the reasoned conclusion are required in order to receive an environmental permit for the project.



Board of Directors


Distribution: NASDAQ OMX Helsinki
Key media

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

ATTACHEMENT: Interim Report 1-6/2021