Stronger balance sheet position, equity ratio 51.9%
– The Tulikivi Group’s net sales were EUR 8.4 million (EUR 9.9 million, 10–12/2023) in the fourth quarter and EUR 33.3 million (EUR 45.3 million, 1–12/2023) in the review period. – The Tulikivi Group’s operating profit was EUR 0.5 (0.6) million in the fourth quarter and EUR 2.1 (5.5) million in the review period. – The Tulikivi Group’s profit before taxes was EUR 0.4 million (0.5 million) in the fourth quarter and EUR 1.4 (4.9) million in the review period. – The equity ratio at the end of the review period was 51.9 per cent (47.8). – Order books stood at EUR 2.8 (6.8) million at the end of the review period. – The EIA process for the Suomussalmi talc project was concluded. – The Board of Directors proposes to the Annual General Meeting that a maximum of EUR 0.01 per A share and EUR 0.0083 per K share be distributed as return of capital for the 2024 financial year. – Future outlook: Net sales and the comparable operating profit for 2025 are expected to improve on 2024.
Key financial ratios
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.
In the final quarter of last year, net sales declined as consumers postponed renovation and new construction projects. The company’s order intake for the quarter was EUR 8.0 (7.4) million. Sales of Tulikivi fireplaces and sauna heaters made positive progress, while demand for subcontracted cladding stones for room-heating stoves continued to decline. Despite the decline in net sales, the relative profitability for the year was at a satisfactory level, the company’s balance sheet position improved, and its equity ratio increased to 51.9%. 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 dealer sales offices by 50 per cent from 330 (in 2023) by the end of 2026. In the final quarter of the year, an agreement on sales cooperation was concluded with a Japanese importer, and production of the new Hari model started as planned. The number of sales offices has increased by more than 10 per cent in 2024.
The sauna business focused on launching a new collection of electric sauna heaters on the market. The new Kevo collection was introduced at the Interbad trade fair in October and its features attracted a lot of interest in the market. The collection highlights the great features of Tulikivi sauna heaters: high-quality design, energy efficiency, original materials and safety. The sauna organisation was strengthened with the appointment of Mikko Kuoppa as Head of Sauna Business in October 2024.
Work on the Suomussalmi talc project has continued in three principal areas: environmental and other permitting, process design for the enrichment plant and defining the product characteristics of talc.
The Kainuu Centre for Economic Development, Transport and the Environment (ELY), the contact authority, issued a reasoned conclusion on the environmental impact assessment (EIA) of the exploitation of the Suomussalmi talc deposit on 6 November 2024, which concluded the EIA process. The conclusion was that the EIA report is of sufficient quality and meets the key content requirements of the Act on the Environmental Impact Assessment Procedure.
During the final quarter, fine grinding tests were also carried out with the aim of optimising the platyness of the talc. In addition, suitability testing of fine ground talc in plastics applications continued.
TULIKIVI CORPORATION
Board of Directors
Distribution: Nasdaq Helsinki Key media www.tulikivi.com
Additional information: Heikki Vauhkonen, Managing Director, tel. +358 (0) 207 636 555
Attachment: Tulikivi Corporation´s Financial Statements Release Jan-Dec 2024
On 2 January 2025, Tulikivi Corporation received a flagging announcement pursuant to Chapter 9, section 5, of the Securities Markets Act from Mikko Laakkonen, according to which the holding of Mikko Laakkonen of shares conferred by Tulikivi Corporation shares has exceeded the threshold of 10 per cent.
As a result of transactions made on 30 December 2024, Mikko Laakkonen’s ownership increased to 6,031,475 shares, i.e. 10.07 per cent of Tulikivi Corporation shares and 4.68 per cent of Tulikivi Corporation voting rights.
Tulikivi Corporation
Managing Director Heikki Vauhkonen, +358 (0)40 524 5593
Distribution: NASDAQ Helsinki, key media www.tulikivi.com
Tulikivi Corporation financial reporting in 2025
Tulikivi Corporation will publish its 2024 Financial Statements Release on 7 March 2025. The Annual Report will be published on the company’s website during the week starting on 24 March 2025. The Annual General Meeting will be held on 24 April 2025.
The following reports will be published in 2025:
– Interim Report for January–March 9 May 2025
– Half Year Financial Report for January–June 15 August 2025
– Interim Report for January–September 7 November 2025
Further information: Heikki Vauhkonen, Managing Director, tel. +358 40 524 5593
Tulikivi Corporation has received the following notification on 11 November 2024.
Person subject to the notification requirement
Name: NENAN Invest Oy
Position: Member of the Board/Deputy member
(X) Legal person (1): Person Discharging Managerial Responsibilities In Issuer
Name: Niko Haavisto
Issuer: Tulikivi Oyj
LEI: 743700GSL41H2DXZY963
Notification type: INITIAL NOTIFICATION
Reference number: 84520/4/10
____________________________________________
Transaction date: 2024-11-08
Venue: NASDAQ HELSINKI LTD (XHEL)
Instrument type: SHARE
ISIN: FI0009900583
Nature of the transaction: ACQUISITION
Transaction details
(1): Volume: 7771 Unit price: 0.42 EUR
(2): Volume: 8031 Unit price: 0.42 EUR
(3): Volume: 444 Unit price: 0.419 EUR
(4): Volume: 3626 Unit price: 0.418 EUR
(5): Volume: 1299 Unit price: 0.417 EUR
(6): Volume: 2268 Unit price: 0.417 EUR
(7): Volume: 791 Unit price: 0.417 EUR
Aggregated transactions (7):
Volume: 24230 Volume weighted average price: 0.41914 EUR
Further information: Heikki Vauhkonen, Managing Director, Tulikivi Corporation Tel. +358 (0)40 524 5593, heikki.vauhkonen@tulikivi.fi
Distribution: Nasdaq Helsinki, Key media
www.tulikivi.com
The Kainuu ELY Centre provided a reasoned conclusion on the Suomussalmi talc project.
Tulikivi Oyj’s subsidiary, Nordic Talc Oy, is investigating the commencement of talc production in the Kivikangas mining area within the Haaponen deposit, located in Suomussalmi. The project aims to transform the Suomussalmi soapstone quarry and factory into a modern, energy and material-efficient talc production facility.
The environmental impact assessment (EIA) procedure for the Suomussalmi talc resource utilization project concluded with a reasoned decision by the Kainuu ELY Centre, which acted as the contact authority, on 6.11.2024.
The ELY Centre considers the EIA report to be of sufficient quality and largely compliant with the content requirements set out in the EIA Act. The reasoned decision includes a description of the project and its environmental impacts, as well as additional study needs. The company will now carefully review the contents of the just-received reasoned decision and take it into account in the preparation of the project’s environmental permit application.
The ongoing planning of the talc production project is progressing as planned. Despite the good progress of the project, it is still too early to assess the final implementation or economic impact of the project.
The documentation of the EIA process can be found on the State Environmental Administration’s website at:
https://www.ymparisto.fi/nordictalcSuomussalmiYVA
For more information: Tulikivi Oyj, CEO Heikki Vauhkonen, tel. +358 40 524 5593 Nordic Talc Oy, CEO Erkki Kuronen, tel. +358 50 599 3539
Distribution: Key media www.tulikivi.com
– 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.
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.
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
– 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.
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.
Name: Heikki Vauhkonen
Position: Chief Executive Officer
Reference number: 21068/5/4
Transaction date: 2022-11-04
Nature of the transaction: DISPOSAL
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Aggregated transactions
(83): Volume: 389419 Volume weighted average price: 0.66715 EUR
Further information: Heikki Vauhkonen, Managing Director, Tulikivi Corporation Tel. +358 (0)207 636 555, heikki.vauhkonen@tulikivi.fi
Distribution: Nasdaq Helsinki
Key media