Tulikivi Oyj - Half Year financial report

Tulikivi Corporation´s half year financial report 1-6/2017 11 August 2017 at 1 p.m.

Tulikivi Corporation

Half-year financial report 1-6/2017: Positive market outlook and profitable April–June

- The Tulikivi Group’s second-quarter net sales were EUR 7.8 million (Q2/2016: EUR 7.9 million), the operating result was EUR 0.3 (0.0) million and the result before taxes was EUR 0.1 (-0.2) million.

- For the review period as a whole, the Tulikivi Group’s net sales were EUR 13.7 million (EUR 14.2 million in H1/2016), the operating result was EUR -0.6 (-1.3) million and the result before taxes EUR -1.0 (-1.7) million.

- Net cash flow from operating activities in the second quarter was EUR 0.6 (0.1) million and EUR 0.7 (-0.4) million in the review period.

- Order books at the end of the review period amounted to EUR 4.0 (3.9) million.

- Sales of the new Karelia fireplace collection are developing well, both in exports and domestically.

- Future outlook: Net sales in 2017 are expected to be at the previous year’s level, and the operating result is expected to improve year-on-year.

 

Key financial ratios

	1-6/ 2017	1-6/ 2016	Change, %	1-12/ 2016	4-6/ 2017	4-6/ 2016	Change, %
Sales, MEUR	13.7	14.2	-3.4 %	30.5	7.8	7.9	-1.3 %
Operating profit/loss, MEUR	-0.6	-1.3	52.2 %	-1.4	0.3	0.0	4615.0 %
Profit before tax, MEUR	-1.0	-1.7	39.4 %	-2.1	0.1	-0.2	139.4 %
Total comprehensive income for the period, MEUR	-1.1	-1.7	36.5 %	-2.0	-0.1	-0.2	66.2 %
Earnings per share, Euro	-0.02	-0.03		-0.03	0.00	0.00
Net cash flow from operating activities, MEUR	0.7	-0.4		2.0	0.6	0.1
Equity ratio, %	30.5	33.0		33.4
Net indebtness ratio, %	135.7	134.4		125.0
Return on investments, %	-4.4	-8.5		-4.3	1.1	0.0

 

Comments by Heikki Vauhkonen, Managing Director:

Exports of Tulikivi products continued to grow in the second quarter. In Central Europe, the new Karelia collection has substantially increased dealers’ and consumers' interest towards Tulikivi products. The sales outlook for the second half of the year is better than in 2016 in all main export markets. Consumer marketing of the Karelia fireplace collection will be launched in the autumn season.

In addition to the new collection, measures to boost the effectiveness of sales have strengthened Tulikivi’s position in Central Europe in the range offered by existing dealers and attracted new dealers.

In Russia the order intake and net sales increased year-on-year mostly because of better economic growth than in 2016.

In Finland sales of fireplaces to new-home builders increased but demand in the renovation market was weaker than a year earlier, resulting in a decline in domestic sales in the second quarter. The Karelia collection has received a very warm welcome from consumers at this summer’s Finnish Housing Fair in Mikkeli, which is likely to have a positive impact on fireplace sales in the autumn in Finland.

In the second quarter the company’s incoming orders totalled EUR 7.9 (7.6) million. The order intake grew in fireplace exports, interior stone products and sauna heaters. The order intake of stove liner stones and sales of fireplaces to renovators in Finland declined.

Tulikivi’s order books at the end of the review period amounted to EUR 4.0 (3.9) million.

As a result of the measures taken last year to boost efficiency, the company’s profitability improved on the previous year. Due to better profitability, decreased fixed costs and lower depreciation, the company’s operating result for the review period improved by EUR 0.7 million compared to the previous year.

The new Karelia fireplace collection has been very well received in Finland and abroad. In addition, the marked improvement in Finnish consumer confidence in the first half of the year is estimated to increase low-rise construction and home renovation in upcoming months. Together with the improved export environment, they form a solid basis for sales growth in the second half of 2017. Cost efficiency is estimated to continue to improve in the second half of 2017.

 

TULIKIVI CORPORATION

Board of Directors

 

Distribution: NASDAQ Helsinki

Key media

www.tulikivi.com

Further information: Heikki Vauhkonen, Managing Director, tel. +358 (0)207 636 555

 

Bifogade filer:

Half-year financial report 01-06 2017.docx