In This Article:
TULIKIVI CORPORATION INTERIM REPORT 3 MAY 2024 AT 1 PM
- The Tulikivi Group’s first-quarter net sales were EUR 8.5 million (EUR 13.0 million, 1–3/2023).
- The Tulikivi Group’s first-quarter operating profit was EUR 0.3 (1.3) million and the profit before taxes was EUR 0.1 (1.1) million.
- The equity ratio at the end of the review period was 49.5 per cent (42.0).
- Order books stood at EUR 5.4 (16.1) million at the end of the review period.
- Based on customer feedback, the experimental products made from Suomussalmi’s Haaponen talc ore widely meet the needs of the various customer segments
- Future outlook: Net sales in 2024 are expected to be EUR 37 to 44 million and the comparable operating profit is expected to be EUR 3 to 5 million.
| Key financial ratios |
|
|
|
|
|
|
| 1-3/24 | 1-3/23 | Change, % |
| 1-12/23 |
|
|
|
|
|
|
|
| Sales, MEUR | 8.5 | 13.0 | -35.1 % |
| 45.3 |
| Operating profit/loss, MEUR | 0.3 | 1.3 | -75.2 % |
| 5.5 |
| Operating profit/loss without impairment loss, MEUR | 0.3 | 1.3 | -75.2 % |
| 5.5 |
| Profit before tax, MEUR | 0.1 | 1.1 | -88.9 % |
| 4.9 |
| Total comprehensive income for the period, MEUR | 0.1 | 0.8 | -83.3 % |
| 3.7 |
| Earnings per share, Euro | 0.00 | 0.01 |
|
| 0.06 |
| Net cash flow from operating activities, MEUR | -0.2 | -0.7 |
|
| 4.9 |
| Operating profit/loss without impairment loss, % | 3.7 | 9.8 |
|
| 12.2 |
| Equity ratio, % | 49.5 | 42.0 |
|
| 47.8 |
| Net indebtness ratio, % | 61.2 | 77.9 |
|
| 58.4 |
| Return on investments, % | 4.7 | 19.7 |
|
| 20.8 |
Comments by Heikki Vauhkonen, Managing Director:
Net sales for the first quarter declined notably from the year before, when they were exceptionally high. Despite the decline in net sales, the operating profit for the first half of the year remained at a satisfactory level. This profitability was made possible by the role of exports in sales, good cost control and successful profitability measures. Political industrial action reduced net sales for the review period by approximately EUR 0.3 million.
During the period under review, the focus was on promoting key projects in Tulikivi’s strategy. The main objectives are to grow the market share in the Central European fireplace market, to increase the net sales of the sauna business, and move the Suomussalmi talc project forward to the investment stage.
In Central Europe, the expansion of the distribution network for the new compact Jero collection continued. The Jero collection has been very well received in all market areas, by retailers and consumers alike. Consumers in Central Europe prefer products in the stove-size range, and the new Jero collection will enable Tulikivi to reach new customer groups. Tulikivi has around 350 distributors in export countries. The aim is to launch sales of the Jero range in all sales offices and increase the number of dealers by 50% by the end of 2026. In February, Tulikivi presented the new Hari model that is part of the Jero collection at the Verona Progetto Fuoco Fair for biomass combustion equipment. Deliveries of the product will start in autumn 2024.