Interim Report
16.8.2024
– 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 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 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.
TULIKIVI CORPORATION
Board of Directors
Distribution: NASDAQ OMX Helsinki Key media www.tulikivigroup.com
Additional information: Heikki Vauhkonen, Managing Director, tel. +358 (0)40 524 5593