TULIKIVI CORPORATION INTERIM REPORT 1-6/2014
8 August 2014, at 10.0 a.m.
Tulikivi Corporation
Interim report, 1 January - 30 June 2014: Demand down, profitability up
8 August 2014, 10.00 a.m.
- The Tulikivi Group’s second-quarter net sales were EUR 10.6 million (Q2/2013: EUR 10.6 million), the operating result was EUR -0.8 (-0.8) million and the result before taxes was EUR -1.0 (-1.0) million. The second-quarter operating result before non-recurring expenses was EUR -0.3 (-0.8) million.
- The Group’s net sales for the reporting period 1 January - 30 June 2014 were EUR 18.9 million (1 January – 30 June 2013: EUR 19.8 million), the operating result was EUR -2.4 (-2.5) million and the result before taxes was EUR -2.8 (-3.0) million. The reporting period operating result before non-recurring expenses was EUR -1.5 (-2.5) million.
- Net cash flow from operating activities was EUR -3.5 (-1.5) million in the reporting period.
- Order books at the end of the period stood at EUR 4.9 (7.2) million.
- Future outlook: The level of demand for Tulikivi products is closely linked to changes in consumer confidence and in the construction sector. The performance improvement programme that started in 2013 includes sales and production efficiency measures and cost-saving measures. The results of these measures will begin to show in 2014. Full-year net sales are expected to be at the same level as in 2013, and the operating result is expected to be positive.
Summary of the interim report 1-6/2014. The full interim report is attached to this release.
Key financial ratios
| 1-6/ 2014 | 1-6/ 2013 | Change, % | 1-12/ 2013 | 4-6/ 2014 | 4-6/ 2013 | |
| Sales, MEUR | 18.9 | 19.8 | -4.7 | 43.7 | 10.6 | 10.6 |
| Operating profit/ loss, MEUR | -2.4 | -2.5 | 2.7 | -4.3 | -0.8 | -0.8 |
| Operating result before non- recurring expenses, MEUR | -1.5 | -2.5 | 38.6 | -1.4 | -0.3 | -0.8 |
| Profit before tax, MEUR | -2.8 | -3.0 | 6.3 | -5.3 | -1.0 | -1.0 |
| Total comprehensive income for the period, MEUR | -2.3 | -2.3 | -2.3 | -4.5 | -0.8 | -0.7 |
| Earnings per share, Euro | -0.04 | -0.06 | -0.11 | -0.01 | -0.02 | |
| Net cash flow from operating activities, MEUR | -3.5 | -1.5 | 2.6 | -1.1 | 1.0 | |
| Equity ratio, % | 38.3 | 30.2 | 38.1 | |||
| Net indebtness ratio, % | 92.9 | 143.6 | 59.3 | |||
| Return on investments, % | -11.6 | -11.6 | -9.8 | -1.9 | -1.8 |
Comments by Heikki Vauhkonen, Managing Director:
Net sales of Tulikivi products in the second quarter were unchanged from the same period the previous year. In Finland, the volume of low-rise housing construction starts and renovation projects was low, which reduced the number of deliveries. Net sales of exports were at the previous year’s level. Net sales in Central Europe were down due to the difficult market conditions. In Russia and the Nordic and Baltic countries, net sales showed a positive trend.
Despite the challenging market, net sales kept growing for the company’s newest products: saunas, design fireplaces and the new-generation Hiisi fireplace collection.
The progress made with the performance improvement programme in the second quarter helped to improve the company’s relative profitability from the previous year’s level. Performance was improved through savings in fixed costs.
In addition to savings in fixed costs, the performance improvement programme includes a reorganisation of production. Having centralised soapstone fireplace production in the spring, a transfer to outsourced tiles in ceramic fireplaces was achieved during the second quarter. The measures taken will improve profitability in the second half of the year.
The flow of orders from Tulikivi’s main market areas in the second quarter fell short of the previous year’s level, due to weak consumer confidence in Finland, an early end to the fireplace purchasing season as a result of warm weather in Central Europe, and the uncertain situation in Russia. Order books at the end of the reporting period amounted to EUR 4.9 (7.2) million.
Owing to the weak market conditions, the impact of the sales efficiency measures that form part of the performance improvement programme will be felt more slowly than anticipated, during the latter part of 2014 and in 2015.
TULIKIVI CORPORATION
Board of Directors
Distribution: NASDAQ OMX Helsinki
Key media
www.tulikivi.com
Additional information: Tulikivi Corporation, FIN-83900 Juuka, Finland, tel. +358 207 636 000, www.tulikivi.com
- Harri Suutari, Chairman of the Board, tel. +358 400 384 937
- Heikki Vauhkonen, Managing Director, tel. +358 207 636 555
ATTACHEMENT: Interim Report 1-6/2014
