0GCJ Tulikivi Oyj

Tulikivi Corporation Financial statements release 1–12/2023: Strong profitability in 2023

TULIKIVI CORPORATION  FINANCIAL STATEMENTS RELEASE  1 MARCH 2024 AT 13.00 EET

- The Tulikivi Group’s net sales were EUR 9.9 million (EUR 13.8 million, 10–12/2022) in the fourth quarter and EUR 45.3 million (EUR 44.3 million, 1–12/2022) in the review period.
- The Tulikivi Group’s operating profit was EUR 0.6 (1.5) million in the fourth quarter and EUR 5.5 (4.7) million in the review period.
- The Tulikivi Group’s profit before taxes was EUR 0.5 million (1.5 million) in the fourth quarter and EUR 4.9 (4.1) million in the review period.
- The equity ratio at the end of the review period was 47.8 per cent (39.0).
- Order books stood at EUR 6.8 (17.2) million at the end of the review period.
- Good results from product tests of the Suomussalmi talc project
- 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
	1-12/23	1-12/22	Change, %		10-12/23	10-12/22	Change, %
Sales, MEUR	45.3	44.3	2.3 %		9.9	13.8	-28.3 %
Operating profit/loss, MEUR	5.5	4.7	17.9 %		0.6	1.5	-58.8 %
Operating profit/loss without impairment loss, MEUR	5.5	4.7	17.9 %		0.6	1.5	-58.8 %
Profit before tax, MEUR	4.9	4.1	19.1 %		0.5	1.5	-69.2 %
Total comprehensive income for the period, MEUR	3.7	4.9	-24.4 %		0.3	2.1	-85.1 %
Earnings per share, Euro	0.06	0.01			0.01	0.04
Net cash flow from operating activities, MEUR	4.9	6.3			2.2	2.8
Operating profit/loss without impairment loss, %	12.2	10.6			6.3	11.0
Equity ratio, %	47.8	39.0
Net indebtness ratio, %	58.4	72.7
Return on investments, %	20.8	19.7

  
Comments by Heikki Vauhkonen, Managing Director:

After the exceptionally high demand for fireplaces starting in 2022, the market situation calmed down in the second half of 2023. This was influenced by energy prices, which started to decline in the summer. In addition, high interest rates significantly reduced new construction and housing sales, leading to a decline in consumer building projects in Finland and elsewhere in Europe. 

In 2023, the profitability of the business developed well and the operating margin exceeded the long-term financial target of 12 per cent. The good profitability was made possible by the growth in net sales from exports, good cost control and successful profitability measures.

The strong profit performance of recent years provides a good basis for advancing the 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 the fourth quarter, the company’s order intake was EUR 7.4 (14.3) million. In autumn 2022, demand was increased by the unusually sharp rise in energy prices and the uncertainties related to the availability of energy.  Tulikivi’s order books remained at a good level, although below the 2022 peak, and amounted to EUR 6.8 (17.2) million at the end of the review period.

In Central Europe, sales and training activities were continued for the expansion of the distribution network of both Tulikivi and Kermansavi fireplaces. These measures focused on the new compact Jero collection, the deliveries of which started as planned in the final quarter. The Jero collection has been exceptionally well received by dealers and consumers in all markets. Consumers in Central Europe prefer products in the stove-size range, and the new Jero collection will enable Tulikivi to reach new customer groups.

The sauna business focused on the commercialisation of a new range of electric sauna heaters. It will be launched for domestic and export markets during spring 2024. The collection highlights the great features of Tulikivi sauna heaters: high-quality design, energy efficiency, original materials and safety.

The results of the product testing of the planned talc products for plastic and paint applications were completed at the end of the year. These results show that talc products of competitive quality compared to the characteristics of products on the market can be made from the enriched Suomussalmi talc.

The talc project carried out studies on the utilisation of the tailings sand produced in the talc enrichment process. The potential use of by-products and its impact on the project’s environmental impact will be taken into account in the Environmental Impact Assessment Report, which is intended to be submitted to the ELY Centre, the contact authority, in the second quarter of 2024.

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

Attachment

• Financial Statements Release 1-12 2023