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Tulikivi Corporation Interim report 1–3/2022: Higher net sales, better operating profit and significantly stronger order books

News Provided by GlobeNewswire2022-05-06

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TULIKIVI CORPORATION INTERIM REPORT 6 MAY 2022 AT 1 PM

- The Tulikivi Group’s first-quarter net sales were EUR 8.4 million (EUR 6.5 million, 1–3/2021).

- The Tulikivi Group’s first-quarter operating profit was EUR 0.3 (0.0) million and the profit before taxes was EUR 0.2 (-0.2) million.

- Net cash flow from operating activities in the first quarter was EUR 0.7 (0.1) million.

- Order books stood at EUR 10.5 (5.2) million at the end of the review period.

- The feasibility study related to Tulikivi’s talc project in Suomussalmi is progressing.

- Future outlook: Net sales are expected to increase in 2022, and the comparable operating profit is expected to improve on 2021.

Key financial ratios
	1-3/22	1-3/21	Change, %	1-12/21

Sales, MEUR	8.4	6.5	29.8 %	33.5
Operating profit/loss, MEUR	0.3	0.0	1921.4 %	2.7
Operating profit/loss without impairment loss, MEUR	0.3	0.0	1921.4 %	2.7
Profit before tax, MEUR	0.2	-0.2	212.1 %	2.1
Total comprehensive income for the period, MEUR	0.1	-0.2	183.3 %	1.7
Earnings per share, Euro	0.00	0.00		0.03
Net cash flow from operating activities, MEUR	0.7	0.1		3.0
Equity ratio, %	29.9	24.0		29.4
Net indebtness ratio, %	137.1	186.3		142.9
Return on investments, %	5.7	0.3		12.6

Comments by Heikki Vauhkonen, Managing Director:

The company’s order intake increased by 39 per cent in the first quarter and was EUR 12.2 (8.8) million. Demand for Tulikivi fireplaces was exceptionally strong in Central Europe. The strong rise in heating energy prices and the uncertainty surrounding the availability of energy and home security of supply increased consumers' interest in purchasing alternative heating systems, such as a fireplace. Furthermore, the Covid-19 pandemic has increased consumers' interest in renovation, holiday homes and low-rise housing in both Finland and export countries, which had a positive impact on demand in all product groups.

The growth in sales was also attributable to long-term work to improve online sales, an updated fireplace renovation concept and the streamlining of distribution channels in some export markets. The company’s order books increased significantly and stood at EUR 10.5 (5.2) million at the end of the review period.

Profitability improved despite the continued steep rises in the prices of steel, purchased components and energy over the past few months, thanks to higher net sales, price increases and successful productivity measures. The company’s profitability is also supported by the fact that its operations are to a substantial degree based on the utilisation of its own soapstone reserves in Finland.

The ceramic colour options introduced in the Karelia collection late last year, as well as a Kermansavi collection based on 80 per cent recycled material, have been well received on the market. The new ceramic designs, which meet the Ecodesign requirements that came into force on 1 January 2022, strengthen Tulikivi’s market position in Finland and expand the potential customer base in the export markets.

In the first quarter Tulikivi made progress in its feasibility study of the Suomussalmi talc project, the purpose of which is to further specify the project’s profitability, environmental and mining plans for industrial operations. Rock mechanics surveys were also carried out in the first quarter to specify the ore study on the Haaponen deposit and for the EIA (environmental impact assessment) procedure.

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

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