– The Tulikivi Group’s net sales were EUR 7.2 million (EUR 9.1 million, 7–9/2023) in the third quarter and EUR 25.0 million (EUR 35.4 million, 1–9/2023) in the review period. – The Tulikivi Group’s operating profit was EUR 0.5 (1.3) million in the third quarter and EUR 1.6 (4.9) million in the review period. – The Tulikivi Group’s profit before taxes was EUR 0.3 million (1.1 million) in the third quarter and EUR 1.0 (4.4) million in the review period. – The equity ratio at the end of the review period was 50.9 per cent (47.5). – Order books stood at EUR 3.1 (11.5) million at the end of the review period. – The Suomussalmi talc project made good progress – Future outlook: Net sales in 2024 are expected to be EUR 33 to 37 million and the comparable operating profit is expected to be EUR 2 to 3 million.
Comments by Heikki Vauhkonen, Managing Director
In the third quarter, net sales declined significantly from the exceptionally high figures the year before as market recovery was slower than anticipated, particularly in Germany. Despite the decline in net sales, the relative profitability for the year was at a satisfactory level. This profitability was made possible by the role of exports in net sales and good cost control.
During the period under review, Tulikivi advanced its strategic projects as planned. The strategic projects are to grow the market share in the Central European fireplace market, to increase the net sales of the sauna business, and advance the Suomussalmi talc project to the investment stage.
In Central Europe, the expansion of the sales and distribution network for the new compact Jero collection continued. 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 aim is to increase the total number of dealers by 50 per cent from 330, the number at the end of 2023, by the end of 2026. Another aim is for all sales offices to offer the Jero collection. The number of sales offices has increased by more than 10 per cent in 2024.
During the review period, the Jero collection received product safety approval for the US market. Thanks to its advanced combustion technology, the collection was approved for consumer investment subsidies in Italy. These approvals facilitate the expansion of the sales and distribution network.
The sauna business focused on launching a new collection of electric sauna heaters on the market. The collection highlights the great features of Tulikivi sauna heaters: high-quality design, energy efficiency, original materials and safety. In addition, the sauna organisation was strengthened with the appointment of Mikko Kuoppa as Head of Sauna Business.
The plans and studies completed for the Suomussalmi talc project during the period under review reinforced confidence in the project’s economic competitiveness. The updated quarrying plan and the schedule suggest that the amount of adjoining rock will be significantly less than the amount of ore, and that the ratio can be kept constant over the life of the mine. Competitiveness is supported by the planned modern enrichment plant, which could be located in the immediate vicinity of the quarry. The project’s conditions will also be positively influenced by the price level of the European talc market and its development.
The Kainuu Centre for Economic Development, Transport and the Environment (ELY), the contact authority, gave public notice of the environmental impact assessment (EIA report) of the Suomussalmi talc deposit exploitation project in July 2024. The period of the notice ended at the end of August, and we expect to receive the contact authority’s reasoned conclusion in November.
During the past quarter, the company has continued work on the reports and plans required for the environmental permit application. The company and the local electricity distribution network operator have continued the nature inventories and environmental assessments required for a new transmission line. The new transmission line would provide Nordic Talc with the power needed for its production operations.
TULIKIVI CORPORATION
Board of Directors
Distribution: NASDAQ OMX Helsinki Key media www.tulikivi.com
Additional information: Heikki Vauhkonen, Managing Director, tel. +358 (0)40 524 5593
ATTACHEMENT: Interim Report 1-9/2024
Tulikivi Corporation has appointed Mikko Kuoppa (43 years old, Bachelor of Engineer) as the head of the sauna business and a member of the company’s management team starting from 21.10.2024.
Mikko Kuoppa has previously held management positions at BMI Group, responsible for the sales of Icopal and Ormax brands. Most recently, Kuoppa worked at BMI Group’s headquarters in London, responsible for the company’s customer engagement and business development programs.
The head of the sauna business is a new position. In this role, he reports to CEO Heikki Vauhkonen.
CEO Heikki Vauhkonen: “Growing the revenue of the sauna business is one of Tulikivi’s three strategic initiatives. In the coming years, we will focus on growth by building distribution channels both domestically and in exports, and by bringing new products to the market.
Mikko Kuoppa: “I have spent almost my entire career in the sales and customer development of building products, with the last two years in Europe and Asia. This supports success in the role. Our goal is to elevate Tulikivi’s sauna business to a new level.”
For more information: CEO Heikki Vauhkonen, +358 40 524 5593 Distribution: Nasdaq Helsinki, key media www.tulikivi.com
Net sales are expected to be EUR 33 to 37 million and comparable operating profit is expected to be approximately EUR 2 to 3 million
Tulikivi is revising downward and focusing its earlier estimate of the 2024 net sales and operating profit. The net sales in 2023 were EUR 45.3 million and the comparable operating profit was EUR 5.5 million. According to the new estimate, net sales in 2024 are expected to be EUR 33 to 37 million and the comparable operating profit is expected to be approximately EUR 2 to 3 million. The reason for reviewing the forecasts is the weaker-than-expected recovery in demand in the main market areas, especially in Germany, for both the fireplaces and cladding stones.
Previous guidance for 2024 (originally published on March 1, 2024): Net sales in 2024 are expected to be EUR 37 to 44 million and the comparable operating profit is expected to be approximately EUR 3 to 5 million.
Further information: Heikki Vauhkonen, Managing Director, tel. +358 (0)40 524 5593
Distribution: Nasdaq Helsinki Key media www.tulikivi.com
– The Tulikivi Group’s net sales were EUR 9.3 million (Q2/2023: EUR 13.3 million) in the second quarter and EUR 17.8 million (H1/2023: EUR 26.4 million) in the review period. – The Tulikivi Group’s operating profit was EUR 0.8 (2.3) million in the second quarter and EUR 1.1 (3.6) million in the review period. – The Tulikivi Group’s profit before taxes was EUR 0.6 (2.2) million in the second quarter and EUR 0.7 (3.3) million in the review period. – The equity ratio at the end of the review period was 49.4 per cent (44.6). – Order books stood at EUR 3.5 (13.9) million at the end of the review period. – The conditions for the implementation of the talc project improved. – 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.
Comments by Heikki Vauhkonen, Managing Director:
Net sales for the first half of the year declined notably from the year before, when they were exceptionally high. Despite the decline in net sales, the relative profitability for the first half of the year remained at a satisfactory level. This profitability was made possible by the role of exports in sales, good cost control and successful profitability measures.
During the period under review, Tulikivi moved forward with its strategic projects. They 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 Central Europe, the expansion of the distribution network for the new compact Jero collection continued. Consumers in Central Europe prefer products in the stove-size range, and the new Jero collection will enable Tulikivi to reach new customer groups. Tulikivi has around 350 distributors in export countries. The aim is to launch sales of the Jero collection in all sales offices and increase the total number of dealers by 50% by the end of 2026. During the review period, the Jero collection received product safety approval for the US market. Thanks to its advanced combustion technology, the collection was approved for consumer investment subsidies in Italy.
The sauna business focused on launching a new collection of electric sauna heaters on the market. The collection highlights the great features of Tulikivi sauna heaters: high-quality design, energy efficiency, original materials and safety. The collection has received good feedback from customers and a follow-up to its launch is being prepared for the upcoming Habitare fair and the international Interbad fair.
The company submitted an environmental impact assessment report (EIA report) for the Suomussalmi talc deposit exploitation project to the Kainuu Centre for Economic Development, Transport and the Environment (ELY), the contact authority, on 27 June 2024, as planned.
In the second quarter, the company’s order intake was EUR 8.2 (11.3) million. In the first half of the previous winter, demand was increased by the high energy prices and the uncertainties related to energy availability. The company’s order books normalised following the peak in demand in 2023 and came to EUR 3.5 (13.9) million at the end of the review period.
Distribution: NASDAQ OMX Helsinki Key media www.tulikivigroup.com
Tulikivi Corporation has received the following notification on 9 November 2022.
Person subject to the notification requirement
Name: Heikki Vauhkonen
Position: Chief Executive Officer
Issuer: Tulikivi Oyj
LEI: 743700GSL41H2DXZY963
Notification type: INITIAL NOTIFICATION
Reference number: 21068/5/4
____________________________________________
Transaction date: 2022-11-04
Venue: NASDAQ HELSINKI LTD (XHEL)
Instrument type: SHARE
ISIN: FI0009900583
Nature of the transaction: DISPOSAL
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Aggregated transactions
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Further information: Heikki Vauhkonen, Managing Director, Tulikivi Corporation Tel. +358 (0)207 636 555, heikki.vauhkonen@tulikivi.fi
Distribution: Nasdaq Helsinki
Key media
www.tulikivi.com
– The Tulikivi Group’s net sales were EUR 9.9 million (EUR 8.3 million, 7–9/2021) in the third quarter and EUR 30.5 million (EUR 24.1 million, 1–9/2021) in the review period. – The Tulikivi Group’s operating profit was EUR 1.2 (1.0) million in the third quarter and EUR 3.2 (2.1) million in the review period. – The Tulikivi Group’s profit before taxes was EUR 1.1 million (0.8 million) in the third quarter and EUR 2.6 (1.6) million in the review period. – Net cash flow from operating activities was EUR 1.3 (1.2) million in the third quarter and EUR 3.5 (1.9) million in the review period. – Order books strengthened significantly in the third quarter and stood at EUR 15.8 (5.9) million at the end of the review period. – Erkki Kuronen was appointed Managing Director of Nordic Talc Oy, a part of the Tulikivi Group, on 16 September 2022. – Future outlook: Net sales in 2022 are expected to be EUR 42 to 45 million and the comparable operating profit is expected to be EUR 4.0 to 5.0 million.
The company’s order intake increased 64 per cent in the third quarter year-on-year and totalled EUR 14.9 (9.1) million. Demand increased in Scandinavia, as well as in Central Europe, due to the sharp increase in electricity prices. In the principal market area the strong rise in heating energy prices and the increased uncertainty surrounding the availability of energy and homes’ security of supply further increased consumers’ interest in purchasing alternative heating systems, such as a fireplace.
The growth in sales was also attributable to systematic long-term work to renew the product portfolio, development of online sales and the streamlining of distribution channels in export markets. Tulikivi’s order books grew and amounted to EUR 15.8 (5.9) 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 review period, 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 the Kermansavi collection based on 80 per cent recycled material, have been well received on the market. The new ceramic collections, which meet the Ecodesign requirements that came into force on 1 January 2022, have strengthened Tulikivi’s market position in Finland and have expanded the potential customer base in the export markets. The collaboration with the German cooperative Hagos eG, which is rich in tradition and focuses on fireplaces and their accessories, has been launched as planned.
Erkki Kuronen was appointed Managing Director of Nordic Talc Oy, a part of the Tulikivi Group, on 16 September 2022. Kuronen has 20 years of expertise in talc deposits and operations from Mondo Minerals and valuable experience from the financing and launch of the Sotkamo Silver mine and the start-up of its production operations. The objective of Nordic Talc Oy is the industrial exploitation of Tulikivi’s talc reserves in the Suomussalmi mining district.
In addition, Tulikivi carried out additional drilling and surveys and updated the JORC mineral resource estimate for the Haaponen talc deposit in the mining district of its Suomussalmi plant. The mineral resources in Suomussalmi increased by 10 million tonnes on the previous estimate. According to the report, the indicated mineral resources of the Haaponen deposit are 22.3 million tonnes and their average talc content is 44.4 per cent.
Additional information: Heikki Vauhkonen, Managing Director, tel. +358 207 636 555
ATTACHEMENT: Interim Report 1-9/2022
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
Tulikivi Corporation´s Corporate Governance Statement for 2021 is enclosed and it can be viewed on the company´s website, at www.tulikivi.com->The Group->Corporate Governance and Management.
Further information: Heikki Vauhkonen, Managing Director, tel. +358 (0)207 636 555 Liite: Tulikivi Corporation’s Corporate Governance Statement 2021 Distribution: Nasdaq Helsinki, Key Media
– The Tulikivi Group’s third-quarter net sales were EUR 6.9 million (EUR 6.6 million, Jul–Sep 2019) and EUR 20.1 million (EUR 19.9 million, Jan–Sep 2019) in the review period. – The Tulikivi Group’s operating profit for the third quarter was EUR 0.6 (0.1) million, and the operating profit for the review period was EUR 0.6 (-0.3) million. – The Tulikivi Group’s third-quarter profit before taxes was EUR 0.4 million (-0.1 million) and EUR 0.0 (-0.9) million for the review period. – Net cash flow from operating activities was EUR 0.8 (-0.1) million in the third quarter and EUR 1.5 (0.5) million in January–September. – Order books at the end of the review period stood at EUR 4.0 (3.8) million. – Nordic Talc, a Tulikivi subsidiary, is preparing a feasibility study for the talc project in Suomussalmi. – Future outlook: Net sales are expected to amount to EUR 27–29 million in 2020, and the comparable operating profit is expected to be positive.
Net sales increased in the third quarter as the Covid-19 pandemic increased consumers’ interest in renovation, holiday homes and single family housing in both Finland and export countries.
Profitability improved as a result of price increases, productivity measures and savings in fixed costs.
The company’s incoming orders totalled EUR 7.9 (7.2) million in the third quarter. In Finland, order flow grew in all product groups. Demand growth was greatest for sauna and interior decoration stone products. Central European and Russian exports also developed favourably during the third quarter. Tulikivi’s order books at the end of the review period amounted to EUR 4.0 (3.8) million.
The Covid-19 pandemic has so far had a positive effect on demand for Tulikivi products, but the strengthening of the second wave of the pandemic has led to restrictions in Central Europe, which may hinder business operations in the second half of the year.
The Tulikivi Corporation subsidiary Nordic Talc Oy, founded in April 2020, is planning a 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. At the same time, the aim is to obtain the necessary external funding for the start-up of Nordic Talc Oy’s operations and the industrial exploitation of the project. In addition, funding applications have been submitted to the Kainuu Centre for Economic Development, Transport and the Environment (ELY Centre) and Business Finland.
ATTACHEMENT: Interim Report 1-9/2020
Tulikivi Corporation´s 2019 Annual Report, including the financial statements and Board of Director´s report, Auditor´s report and Corporate Governance statement has been published in pdf format in Finnish and English. It is available on the company´s internet site at www.tulikivi.com.
Heikki Vauhkonen Managing Director