Tulikivi Corporation Interim Report 1-9/2018

Published 10/26/2018

Net sales decreased in Q3, outlook for whole year unchanged

- The Tulikivi Group’s third-quarter net sales were EUR 6.4 million (EUR 7.0 million in Q3/2017). Its operating profit was EUR -0.3 (0.3) million and its result before taxes was EUR -0.5 (0.1) million in the third quarter.
- The Tulikivi Group’s net sales in January–September 2018 were EUR 19.9 million (EUR 20.7 million in January–September 2017),
its operating result was EUR -0.5 (-0.4) million and its result before taxes was EUR -1.1 (-0.9) million.
- Net cash flow from operating activities was EUR 0.4 (0.4) million in the third quarter and EUR 1.1 (1.1) million January–September 2018.
- Order books at the end of the review period amounted to EUR 3.9 (3.4) million.
- Sales of the new Karelia and Pielinen fireplace collections continued to develop well, both in exports and domestically.
- Future outlook unchanged: Net sales are expected to increase in 2018, and the operating profit is expected to be positive.

Summary of the interim report 1-9/2018. The full interim report is attached to this release. 

Key financial ratios 1-9/


Sales, MEUR 19.9 20.7 -4.2 29.3 6.4 7.0 -8.9
Operating profit/loss, MEUR -0.5 -0.4 -49.2 -0.4 -0.3 0.3 -215.7
Profit before tax, MEUR -1.1 -0.9 -13.9 -1.2 -0.5 0.1 -661.4
Total comprehensive income for the period, MEUR -1.1 -1.0 -7.1 -1.3 -0.5 0.1 -898.4
Earnings per share, Euro -0.02 -0.02   -0.02 -0.01 0.00  
Net cash flow from operating activities, MEUR 1.1 1.1   1.9 0.4 0.4  
Equity ratio, % 28.1 31.0   30.7      
Net indebtness ratio,% 146.4 133.8   135.3      
Return on investments,% -2.6 -1.6   -1.2   1.0  

Comments by Heikki Vauhkonen, Managing Director

The overall fireplace market in our principal market areas has decreased slightly since the beginning of 2018. The autumn fireplace season started slowly after the long and hot summer, which is why our net sales were lower than expected in the third quarter.

For this reason, our sales margin also decreased year-on-year in the third quarter. An unfavourable geographic sales mix and a decrease in inventories had a negative effect on profitability. We were able to decrease fixed costs as planned.

Our order books have increased year-on-year and our new collections have been well received, which will enable us to increase our net sales and improve profitability in the fourth quarter of 2018.

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.  These collections have increased our market share in Central Europe.
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.
The flow of fireplace orders from Finland in the third quarter remained at the previous year’s level. Thanks to updated collections, changes to distribution channels and closer cooperation with the home-building industry, we have been able to increase our market share despite a challenging market. These measures are expected to further increase domestic sales in the fourth quarter.

The company’s incoming orders totalled EUR 7.1 (7.2) million in the third quarter.

Tulikivi’s order books at the end of the review period amounted to EUR 3.9 (3.4) million.

The new fireplace collections have been very well received in Finland and abroad. Low-rise construction is not expected to increase significantly in Finland despite the good general economic situation. We are continuing our efforts to enhance sales efficiency in Finland to increase renovation sales.

The highly successful development work on the Karelia and Pielinen collections provides us with an opportunity to increase our market share and profitability in both Finland and exports in 2018.



Board of Directors

Distribution: NASDAQ OMX Helsinki
Key media

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

ATTACHEMENT: Interim Report 1-9/2018