Tulikivi Oyj - Half Year financial report

Tulikivi Corporation´s half year financial report 1-6/2016

TULIKIVI CORPORATION    HALF YEAR FINANCIAL REPORT 1-6/2016

                                              4.8.2016 at 1.00 p.m.

Tulikivi Corporation

Half year financial report 1–6/2016: Net sales at last year’s level,
operational efficiency measures progress as planned 

4 August 2016, at 1.00 p.m.

- The Tulikivi Group’s second-quarter net sales were EUR 7.9 million (Q2/2015:
EUR 8.5 million), the operating result was EUR 0.0 (-0.8) million and the
result before taxes was EUR -0.2 (-0.9) million. 

- For the review period as a whole, the Tulikivi Group’s net sales were EUR
14.2 million (EUR 14.7 million in H1/2015).The operating result was EUR -1.3
(-3.3) million and the result before taxes EUR -1.7 (-3.6) million. 

- Net cash flow from operating activities was EUR 0.1 (1.2) million for the
second quarter and EUR -0.4 (-0.0) million for the review period. 

- Order books at the end of the review period amounted to EUR 3.9 (4.4) 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 half year financial report 1-6/2016. The full half year
financial report is attached to this release. 

Key financial ratios



                         1-6/   1-6/  Change,  1-12/  4-6/   4-6/  Change,
                         2016   2015        %   2015  2016   2015        %
                                                                          
Sales, MEUR              14.2   14.7     -3.1   32.0   7.9    8.5     -6.7
Operating profit/        -1.3   -3.3     59.2   -2.9   0.0   -0.8    100.8
loss, MEUR                                                                
Profit before tax,       -1.7   -3.6     53.1   -3.9  -0.2   -0.9     80.2
MEUR                                                                      
Total comprehensive      -1.7   -3.6     52.8   -3.8  -0.2   -0.9     83.5
income for the period,                                                    
MEUR                                                                      
Earnings per share,     -0.03  -0.06           -0.06  0.00  -0.02         
Euro                                                                      
Net cash flow from       -0.4   -1.0             0.8   0.1    1.2         
operating activities,                                                     
MEUR                                                                      
Equity ratio, %          33.0   34.8            36.9                      
Net indebtness          134.4  121.2           118.4                      
ratio, %                                                                  
Return on                -8.5  -17.5            -7.7   0.0   -2.0         
investments, %                                                            





Comments by Heikki Vauhkonen, Managing Director:

The second-quarter demand for Tulikivi’s products on the domestic market was
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. 

Market conditions continue to be challenging, however, due to the low level of
low-rise housing construction, low heating energy prices and consumer
uncertainty in purchasing decisions. 

In Germany and France, the main markets in Central Europe, demand was still
relatively weak. While net sales from fireplace exports to Germany remained at
the 2015 level in the second quarter, they were considerably lower than the
year before in the case of exports to France. Despite the improved economic
conditions, no turn for the better can yet be discerned in the fireplace
market. With respect to 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. 

With regard to Russia, net sales were down in the second quarter but order
books improved on the previous year. 

In the second quarter the company’s incoming orders totalled EUR 7.6 (8.0)
million. The order flow was up on the previous year in Finland. Conversely, the
order flow from exports to Central Europe was down. 

At the end of the review period as a whole, Tulikivi’s order books amounted to
EUR 3.9 (4.4) million. 

The measures taken last year to improve structural efficiency have increased
the company’s profitability. As a result of improved sales margins, decreased
fixed costs and lower depreciation, the company’s operating result for the
review period improved by EUR 2.0 million compared with the previous year. 

With improved profitability, the company’s net cash flow from operating
activities for the review period was EUR 0.6 million higher than in the
previous year. 

Even though the operating environment is likely to remain challenging for the
remainder of 2016, the downward trend in net sales is expected to bottom out
thanks to the sales efficiency measures. Profitability is expected to improve
for 2016 as a whole, due to the structural savings and production efficiency
measures. 



TULIKIVI CORPORATION

Board of Directors



Distribution: Nasdaq Helsinki

Key media

www.tulikivi.com



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



ATTACHMENT: Half year financial report 1-6/2016

Viðhengi:

Half year financial report 01-062016.pdf