Published 07.08.2015

Net sales still low, performance improvements making progress

– The Tulikivi Group’s second-quarter net sales were EUR 8.5 million (Q2/2014: EUR 10.6 million), the operating result was EUR -0.8 (-0.8) million and the result before taxes was EUR -0.9 (-1.0) million. The second-quarter operating result before non-recurring expenses was EUR -0.4 (-0.3) million.

– The Group’s net sales in the reporting period 1 January – 30 June 2015 were EUR 14.7 million (1 January – 30 June 2014: EUR 18.9 million), the operating result was EUR -3.3 (-2.4) million and the result before taxes was EUR -3.6 (-2.8) million. The operating result before non-recurring expenses was EUR -2.7 (-1.5) million in the reporting period.

– Net cash flow from operating activities in the second quarter was EUR 1.2 (-1.1) million and EUR -1.0 (-3.5) million in the review period.

– Order books at the end of the period amounted to EUR 4.4 (4.9) million.

– Future outlook: Due to an uncertain market outlook, the company will not issue a net sales or profit outlook for the 2015 financial year.

 

Summary of the interim report 1-6/2015. The full interim report is attached to this release.

 

Key financial ratios

	1-6/ 2015	1-6/ 2014	Change, %	1-12/ 2014	4-6/ 2015	4-6/ 2014	Change, %
Sales, MEUR	14.7	18.9	-22.3	39.3	8.5	10.6	-19.4
Operating profit/ loss, MEUR	-3.3	-2.4	-35.0	-2.4	-0.8	-0.8	5.7
Operating result before non- recurring expenses, MEUR	-2.7	-1.5	-75.0	-1.0	-0.4	-0.3	-18.6
Profit before tax, MEUR	-3.6	-2.8	-28.1	-3.3	-0.9	-1.0	6.2
Total comprehensive income for the period, MEUR	-3.6	-2.3	-52.8	-2.6	-0.9	-0.8	-14.5
Earnings per share,  Euro	-0.06	-0.04		-0.04	-0.02	-0.01
Net cash flow from operating activities, MEUR	-1.0	-3.5		-2.1	1.2	-1.1
Equity ratio, %	34.8	38.3		39.0
Net indebtness ratio,  %	121.2	92.9		89.8
Return on investments, %	-17.5	-11.6		-5.4	-2.0	-1.9

 

Comments by Heikki Vauhkonen, Managing Director

Tulikivi Corporation’s net sales in the second quarter were low. Demand for fireplaces was weak in Finland as a result of the reduced level of low-rise housing construction, low heating energy prices and low consumer confidence in purchasing decisions.

The winter season was weak in Central Europe and there were few new deliveries in the second quarter. Net sales in Russia were also lower than in 2014 because of the more challenging market resulting from increased economic uncertainty.

In the second quarter the company’s flow of orders was EUR 8.4 (8.7) million, but as a whole the market situation still remains uncertain and so far there are no signs of its improvement.

Tulikivi’s order books at the end of the reporting period amounted to EUR 4.4 (4.9) million.

Due to decreased net sales, the company will continue to boost the efficiency of its operations and is aiming for savings of EUR 2.5 million in fixed costs in 2015. Furthermore, the company aims to release working capital by decreasing its inventory levels by EUR 2.5 million. As products were not manufactured for inventories as they had been in previous years, the lowered capacity utilisation of factories also contributed to lower production profitability in the first half of the year.

Thanks to the adjustment measures implemented, the company’s profitability in the second quarter remained on the 2014 level and cash flow from operating activities was EUR 1.2 million.

TULIKIVI CORPORATION

Board of Directors

 

Distribution: NASDAQ OMX Helsinki
Key media
www.tulikivi.com

Additional information: Heikki Vauhkonen, Managing Director, tel. +358 207 636 555

ATTACHEMENT: Interim Report 1-6/2015