Stock Exchange Releases
7.3.2025
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