Tulikivi Oyj - Interim report (Q1 and Q3)

Tulikivi Corporation´s interim report 1-9/2016

TULIKIVI CORPORATION                         INTERIM REPORT 1-9/2016

                                                                   27.10.2016
at 1.00 p.m. 





Tulikivi Corporation

Interim Report, 1–9/2016: Net sales at last year’s level, operational
efficiency measures progress as planned 

27 October 2016  at 1.00 p.m.

- 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/   1-9/  Change,  1-12/  7-9/  7-9/
                         2016   2015        %   2015  2016  2015
                                                                
Sales, MEUR              21.9   23.0     -4.6   32.0   7.7   8.3
Operating profit/        -1.2   -3.0     59.0   -2.9   0.1   0.3
loss, MEUER                                                     
Profit before tax,       -1.8   -3.6     50.5   -3.9  -0.1   0.0
MEUR                                                            
Total comprehensive      -1.8   -3.5     49.6   -3.8  -0.1   0.0
income for the period,                                          
MEUR                                                            
Earnings per share,     -0.03  -0.06           -0.06  0.00  0.00
Euro                                                            
Net cash flow from       -0.1    0.1             0.8   0.3   1.1
operating activities,                                           
MEUER                                                           
Equity ratio, %          33.1   35.6            36.9            
Net indebtness          134.1  114.7           113.4            
ratio, %                                                        
Return on                -5.2  -10.6            -7.7   0.4   0.9
investments, %                                                  



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. 



TULIKIVI CORPORATION

 Board of Directors



 Distribution: Nasdaq Helsinki

Key media

www.tulikivi.com



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



ATTACHEMENT: Interim Report 1-9/2016

Liitteet:

Interim Report 01-09 2016.pdf