Tulikivi Corporation Half Year Financial Report 1-6/2022

Published 08/19/2022

Higher net sales, better operating profit and significantly stronger order books

- The Tulikivi Group’s net sales were EUR 12.2 million (EUR 9.3 million, 4–6/2021) in the second quarter and EUR 20.6 million (EUR 15.8 million, 1–6/2021) in the review period.
- The Tulikivi Group's operating profit was EUR 1.7 (1.1) million in the second quarter and EUR 2.0 (1.1) million in the review period.
- The Tulikivi Group’s profit before taxes was EUR 1.4 million (1.0 million) in the second quarter and EUR 1.5 (0.8) million in the review period.
- Net cash flow from operating activities was EUR 1.6 (1.1) million in the second quarter and EUR 2.2 (1.2) million in the review period.
- Order books stood at EUR 11.3 (4.7) million at the end of the review period.
- The feasibility study related to Tulikivi’s talc project in Suomussalmi is progressing.
- Future outlook: Net sales in 2022 are expected to be EUR 38 to 42 million and the comparable operating profit is expected to improve substantially on 2021.



Comments by Heikki Vauhkonen, Managing Director:

The company’s order intake grew by 48 per cent during the first half of the year and was EUR 26.6 (18.0) million. Demand for Tulikivi fireplaces was exceptionally strong in Central Europe. The strong rise in heating energy prices and the uncertainty surrounding the availability of energy and home security of supply increased consumers' interest in purchasing alternative heating systems, such as a fireplace.

The growth in sales was also attributable to systematic long-term work to renew the product portfolio, development of online sales and the streamlining of distribution channels in export markets. Tulikivi’s order books grew and amounted to EUR 11.3 (4.7) million at the end of the review period.

Profitability improved despite the continued steep rises in the prices of steel, purchased components and energy over the first half of the year, thanks to higher net sales, price increases and successful productivity measures. The company’s profitability is also supported by the fact that its operations are to a substantial degree based on the utilisation of its own soapstone reserves in Finland.

The ceramic colour options introduced in the Karelia collection late last year, as well as the Kermansavi collection based on 80 per cent recycled material, have been well received on the market. The new ceramic designs, which meet the Ecodesign requirements that came into force on 1 January 2022, strengthen Tulikivi’s market position in Finland and expand the potential customer base in the export markets. The cooperation agreement concluded in June with the German cooperative Hagos eG, which focuses on fireplaces and their accessories, enables Tulikivi to increase its market share in Germany in the coming years.

In the first quarter, Tulikivi 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, a more detailed research project was launched with Metso Outotec related to the economic exploitation of talc and the planning of the talc enrichment plant. Surveys were also carried out to improve the accuracy of the ore study on the Haaponen deposit and to facilitate the EIA (environmental impact assessment) process.




Board of Directors


Distribution: NASDAQ OMX Helsinki
Key media

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

ATTACHEMENT: Interim Report 1-6/2022