Previous guidance for 2022 (published on 6 May 2022): Net sales are expected to increase in 2022, and the comparable operating profit is expected to improve on 2021.
Tulikivi is now revising its earlier estimate of the 2022 comparable operating profit and net sales upward. The net sales in 2021 were EUR 33.5 million and the comparable operating profit was EUR 2.7 million. According to the new estimate, net sales in 2022 are expected to be EUR 38 to 42 million and the comparable operating profit is expected to improve substantially on 2021. The improved outlook is based on exceptionally good continued order intake from abroad and Finland.
TULIKIVI CORPORATION
Board of Directors Further information: Heikki Vauhkonen, Managing Director, tel. +358 (0)207 636 555
Distribution: Nasdaq Helsinki Key media www.tulikivi.com
Tulikivi signed an agreement with the German Hagos cooperative on the distribution of the Kermansavi collection in Germany and Austria. As part of its growth strategy, Tulikivi has updated its ceramic Kermansavi collection to meet the requirements of the Central European export markets. The ceramic fireplaces, made of 80 per cent recycled material, now meet the requirements of Central European consumers regarding design and usage habits and the emission and efficiency requirements of the new Ecodesign Directive. The agreement is strategically important because it opens an export channel for Tulikivi’s ceramic products to one of the most important European fireplace markets. The German fireplace market is expected to develop favourably in the coming years due to legislation requiring that old fireplaces be replaced with new ones that meet the new emissions regulations.
Established in 1919, Hagos eG is a cooperative that is rich in tradition. It focuses on fireplaces and their accessories. It currently has about 1,400 owner-members and over 3,000 customers. Hagos have one branch office in Austria and nine branch offices in Germany. The owner-members of Hagos include fireplace bricklayers and specialist stores in the fireplace sector. Its net sales are over EUR 200 million annually.
“The cooperation agreement we have now signed with the strong German partner offers comprehensive distribution routes in a significant market area for the updated Kermansavi collection, which fulfils the requirements of the Ecodesign Directive. It will enable the market share in the German fireplace market to grow in the coming years,” says Heikki Vauhkonen, Managing Director of Tulikivi.
“We are very pleased with the trust that has been placed in us and the opportunity to gain distribution of Tulikivi’s Kermansavi product range in Germany. As a medium-sized company, Hagos has been a successful cooperative in the fireplace sector for over 100 years. The discussions with Tulikivi have shown that both companies have a shared commitment in the development of the fireplace and wood-burning sector. Kermansavi fireplaces are of very high quality, meet all the required technical requirements and complement our product selection with their clear-cut design. Hagos is pleased about the expansion of the product selection, and Tulikivi will benefit from Hagos’ knowledge of the sector and its market position in Germany. It’s a classic win-win situation!” says Ralf Tigges, Chairman of the Hagos eG, about working with Tulikivi.
TULIKIVI CORPORATION Board of Directors Further information: Heikki Vauhkonen, Managing Director, tel. +358 (0)207 636 555
– 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.
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.
Board of Directors
Distriburion: Nasdaq Helsinki Key media www.tulikivi.com
Additional information: Heikki Vauhkonen, Managing Director, tel. +358 207 636 555
The Annual General Meeting of Tulikivi Corporation was held through exceptional procedures on 27 April 2022 in Helsinki, Finland in accordance with the temporary legislative act to limit the spread of the Covid-19 pandemic (375/2021), which entered into force on 8 May 2021. The Company’s shareholders were able to participate in the General Meeting and exercise their shareholder rights only through voting in advance through authorised proxy representative as well as by making counterproposals and presenting questions in advance. It was not possible to participate in the meeting in person at the meeting venue.
The Annual General Meeting approved the financial statements for the financial year 2021 and discharged the members of the Board and the Managing Director from liability. It was resolved that dividends will not be paid. The Annual General Meeting accepted the proposals of the Board to authorise the board to decide on the issue of new shares or the company’s own shares in possession of the company and on the right to issue rights of option and other special rights entitling to shares. The Annual General Meeting approved Tulikivi Corporation’s Remuneration Report for Governing Bodies. The resolution on the Remuneration Report is advisory.
1 Dividend The Annual General Meeting resolved, in accordance with the Board’s proposal, that dividends will not be paid.
2 Remuneration of Board members and auditor’s fees The annual remuneration of a Board member is EUR 20,000. Each Board member will receive 40% of the annual remuneration in the form of Tulikivi Corporation Series A shares. In addition, the Chairman of the Board will be paid a monthly remuneration of EUR 4,500. The members of the Nomination Committee of the Board and the members of the Audit Committee of the Board will receive a remuneration of EUR 330 per each meeting. The Chairman of the Audit Committee shall receive a fee of EUR 660 per meeting. The fees for the auditor are paid according to an approved invoice.
3 Board members The number of Board members was set at six. Jaakko Aspara, Liudmila Niemi, Tarmo Tuominen, Jyrki Tähtinen, Heikki Vauhkonen and Niko Haavisto were appointed as members to the Board of Directors.
4 Auditor Authorised Public Accounting firm KPMG Oy Ab was elected auditor, with Heli Tuuri, Authorised Public Accountant, acting as the auditor in charge.
5 Authorisation of the Board to decide on an issue of shares and the right to issue rights of option and special rights which give entitlement to shares as defined in Chapter 10 Article 1 of the Companies’ Act The Annual General Meeting authorised the Board to decide on the issue of new shares or the company’s own shares in possession of the company as proposed by the Board. The new shares and the company’s own shares in possession of the company can be issued in the following numbers: A total of no more than 15,656,622 series A shares and no more than 2,304,750 series K shares. The authorisation also includes the right to carry out share issues deviating from the shareholders’ pre-emptive subscription right provided that there is a weighty financial reason from the company’s point of view for the deviation. The authorisation includes the right to issue shares without payment to the company itself provided that the number of shares issued to the company would not exceed one tenth of all shares of the company. The authorisation also includes the right to issue special rights, as defined in Chapter 10 Article 1 of the Companies’ Act, which entitle to subscribe for shares against payment in cash or by setting off the subscriber’s receivables against the company as payment. The authorisation also includes the right to make fee / salary payments in the form of shares. The Board is entitled to decide on other issues related to the share issues. The authorisation is in force until the Annual General Meeting to be held in 2023 but until 30 June 2023 at the latest.
6 Organisation of the Board At its organisational meeting following the Annual General Meeting the Board elected Jyrki Tähtinen as its chairman. Jyrki Tähtinen was elected as chairman of the Nomination Committee and Heikki Vauhkonen and Jaakko Aspara as its members. Niko Haavisto was elected as chairman of the Audit Committee and Liudmila Niemi and Tarmo Tuominen as its members.
TULIKIVI CORPORATION Jyrki Tähtinen Chairman of the Board
Additional Information: Tulikivi Corporation, 83900 Juuka, tel. +358 403 063 100 – Jyrki Tähtinen, Chairman of the Board, tel. +358 400 406 509 – Heikki Vauhkonen, Managing Director, tel. + 358 207 636 555
DISTRIBUTION: Nasdaq Helsinki Ltd. Major media
Higher net sales, significantly better operating profit and stronger order books
– The Tulikivi Group’s net sales were EUR 9.4 million in the fourth quarter of 2021 (EUR 9.1 million, 10–12/2020) and EUR 33.5 million in 2021 (EUR 29.2 million, 1–12/2020). – The Tulikivi Group’s operating profit was EUR 0.6 (0.6) million in the fourth quarter and EUR 2.7 (1.2) million in 2021. – The Tulikivi Group’s profit before taxes was EUR 0.5 (0.4) million in the fourth quarter and EUR 2.1 (0.4) million in 2021. – Net cash flow from operating activities was EUR 1.2 (1.1) million in the fourth quarter and EUR 3.0 (2.6) million in 2021. – The order books stood at EUR 6.3 (3.2) million at the end of the financial year. – The uncertainty related to the situation in Russia is not expected to have a significant impact on overall demand. – 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
The company’s order intake increased by 10% in the fourth quarter and was EUR 9.5 (8.6) million. The demand for the Karelia and Pielinen collections was particularly strong in Central Europe and Finland. The Covid-19 pandemic has increased consumers’ interest in renovation, holiday homes and low-rise housing in both Finland and export countries. The major increase in the price of energy for heating increased consumers’ interest in purchasing fireplaces.
The growth in sales was also attributable to successful development of online sales, an updated renovation concept and the streamlining of distribution channels in some export markets. The company’s order books increased significantly and stood at EUR 6.3 (3.2) million at the end of the review period.
Profitability improved despite the steep rises in the prices of steel, purchased components and energy during 2021, 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. Due to the challenging component and logistics situation towards the end of the year, deliveries were postponed until early 2022.
In the fourth quarter, ceramic colour options were introduced in the Karelia collection, as well as a Kermansavi collection based on 80% recycled material. The design and features of these collections are designed for customers in both the Finnish and export markets.
With the new collections, all Tulikivi collections meet the emission standards laid down in the EU Ecodesign Directive, which entered into force on 1 January 2022. The products’ compliance has been verified by RRF (Rhein-Ruhr Feuerstätten Prüfstelle GmbH), an accredited test facility in Germany. The new ceramic designs strengthen Tulikivi’s market position in Finland and expand the potential customer base in the export markets.
Tulikivi made progress during 2021 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 carried out in the fourth quarter, as well as surveys required by the EIA (environmental impact assessment) procedure.
Additional information: Heikki Vauhkonen, Managing Director, tel. +358 (0) 207 636 555
Attachment: Tulikivi Corporation´s Financial Statements Release Jan-Dec 2021
Person subject to the notification requirement
Name: Jaakko Aspara
Position: Member of the Board
Issuer: Tulikivi Oyj
LEI: 743700GSL41H2DXZY963
Notification type: INITIAL NOTIFICATION
Reference number: 7356/4/4
____________________________________________
Transaction date: 2021-12-14
Venue: NASDAQ HELSINKI LTD (XHEL)
Instrument type: SHARE
ISIN: FI0009900583
Nature of the transaction: ACQUISITION
Transaction details
(1): Volume: 1,107 Unit price: 0.447 EUR
(2): Volume: 3,401 Unit price: 0.447 EUR
(3): Volume: 200 Unit price: 0.448 EUR
(4): Volume: 3,655 Unit price: 0.45 EUR
(5): Volume: 5,000 Unit price: 0.45 EUR
(6): Volume: 1,637 Unit price: 0.454 EUR
Aggregated transactions
(6): Volume: 15,000 Volume weighted average price: 0.44951 EUR
For more information, please contact: Heikki Vauhkonen, Managing Director, Tulikivi Corporation Tel. +358 (0)207 636 555, heikki.vauhkonen@tulikivi.fi
Distribution: Nasdaq Helsinki
Key media