Tulikivi Corporation Interim report 1–9/2022: Strong profit growth continued 4 November 2022 at 1 pm
TULIKIVI CORPORATION INTERIM REPORT 4 NOV 2022 AT 1 PM
Tulikivi Corporation
Interim report 1–9/2022: Strong profit growth continued
- 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.
| Key financial ratios | ||||||||||
| 1-9/22 | 1-9/21 | Change, % | 1-12/21 | 7-9/22 | 7-9/21 | Change, % | ||||
| Sales, MEUR | 30.5 | 24.1 | 26.7 % | 33.5 | 9.9 | 8.3 | 19.9 % | |||
| Operating profit/loss, MEUR | 3.2 | 2.1 | 53.8 % | 2.7 | 1.2 | 1.0 | 19.4 % | |||
| Operating profit/loss without impairment loss, MEUR | 3.2 | 2.1 | 53.8 % | 2.7 | 1.2 | 1.0 | 19.4 % | |||
| Profit before tax, MEUR | 2.6 | 1.6 | 59.4 % | 2.1 | 1.1 | 0.8 | 25.7 % | |||
| Total comprehensive income for the period, MEUR | 2.7 | 1.3 | 109.8 % | 1.7 | 1.1 | 0.7 | 52.7 % | |||
| Earnings per share, Euro | 0.05 | 0.02 | 0.03 | 0.02 | 0.01 | |||||
| Net cash flow from operating activities, MEUR | 3.5 | 1.9 | 3.0 | 1.3 | 1.2 | |||||
| Equity ratio, % | 36.0 | 28.1 | 29.4 | |||||||
| Net indebtness ratio, % | 91.8 | 144.7 | 142.9 | |||||||
| Return on investments, % | 18.7 | 12.6 | 12.6 | |||||||
Comments by Heikki Vauhkonen, Managing Director:
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.
TULIKIVI CORPORATION
Board of Directors
Distribution: Nasdaq Helsinki
Key media
www.tulikivi.com
Further information: Heikki Vauhkonen, Managing Director, tel. +358 (0)207 636 555
Attachment
