Tulikivi Corporation Interim Report 1-9/2016

Published 10/27/2016

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

- The Tulikivi Group’s third-quarter net sales were EUR 7.7 million (EUR 8.3 million in Q3/2015), the operating profit in the third quarter was EUR 0.1 (0.3) million and the result before taxes was EUR -0.1 (0.0) million.
- For the review period as a whole, the Tulikivi Group’s net sales were EUR 21.9 million (1 January – 30 September 2015: EUR 23.0 million), the operating result was EUR -1.2 (-3.0) million and the result before taxes was EUR -1.8 (-3.6) million.
- Net cash flow from operating activities was EUR 0.3 (1.1) million in the third quarter and EUR -0.1 (0.1) million in the review period.
- Order books at the end of the review period amounted to EUR 3.2 (4.3) 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 interim report 1-9/2016. The full interim report is attached to this release.


Key financial ratios 1-9/
Sales, MEUR 21.9 23.0 -4.6 32.0 7.7 8.3
Operating profit/loss, MEUR -1.2 -3.0 59.0 -2.9 0.1 0.3
Profit before tax, MEUR -1.8 -3.6 50.5 -3.9 -0.1 0.0
Total comprehensive income for the period, MEUR -1.8 -3.5 49.6 -3.8 -0.1 0.0
Earnings per share, Euro -0.03 -0.06   -0.06 0.00 0.00
Net cash flow from operating activities, MEUR -0.1 0.1   0.8 0.3 1.1
Equity ratio, % 33.1 35.6   36.9    
Net indebtness ratio,% 134.1 114.7   113.4    
Return on investments,% -5,2 -10,6   -7,7 0,4 0,9

Comments by Heikki Vauhkonen, Managing Director

The third-quarter sales of Tulikivi’s products on the domestic market were 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.

However, market conditions in fireplace sales continue to be challenging in Finland compared with previous years due to the low level of low-rise housing construction, low heating energy prices and consumer uncertainty in purchasing decisions.

In Finland, to boost sales in the Helsinki Metropolitan Area, additional members of staff have been recruited within sales to professionals and consumers.

In Germany and France, the main markets in Central Europe, market conditions were still relatively weak. In the third quarter, net sales from fireplace exports to Belgium, France and Germany were considerably lower than the year before. The market conditions were made even more challenging by the warm weather in the early autumn, which according to the dealers’ view delayed the start of the fireplace season. Despite the improved economic conditions, there is no improvement in sight in the fireplace market. Regarding 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. Export sales covering North America and saunas were strengthened with new personnel responsible for these areas.

In Russia, net sales for the third quarter and order books for the remainder of the year improved on the previous year.

The Grafia soapstone fireplace models that were launched earlier have been well received in all market areas. At the beginning of 2017, the company will launch a new soapstone collection that is based on new surface options and high-quality design.

In the third quarter the company’s incoming orders totalled EUR 7.6 (8.6) million. The order flow was on the same level as the previous year in Finland. In exports, incoming orders from Belgium, France and Russia decreased.

Tulikivi’s order books at the end of the review period amounted to EUR 3.2 (4.3) million.

As a result of the measures taken last year to improve structural efficiency, the company’s profitability improved on the previous year. Due to improved sales margins, decreased fixed costs and lower depreciation, the company’s operating result for the review period improved by EUR 1.8 million compared with the previous year.

Even though the operating environment for exports is likely to remain challenging in 2016, the downward trend in net sales is expected to become less pronounced thanks to the sales efficiency measures. Profitability is expected to improve in 2016, 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 1-9/2016