Tulikivi Corporation Financial statements release 1–12/2021: Higher net sales, significantly better operating profit and stronger order books 4 March 2022 at 1 pm

Tulikivi Corporation                                            

Financial statements release 1–12/2021

– The Tulikivi Group’s net sales were EUR 9.4 million in the fourth quarter of 2021 (EUR 9.1 million, 10–12/2020) and EUR 33.5 million in 2021 (EUR 29.2 million, 1–12/2020).
– The Tulikivi Group’s operating profit was EUR 0.6 (0.6) million in the fourth quarter and EUR 2.7 (1.2) million in 2021.
– The Tulikivi Group’s profit before taxes was EUR 0.5 (0.4) million in the fourth quarter and EUR 2.1 (0.4) million in 2021.
– Net cash flow from operating activities was EUR 1.2 (1.1) million in the fourth quarter and EUR 3.0 (2.6) million in 2021.
– The order books stood at EUR 6.3 (3.2) million at the end of the financial year.
– The uncertainty related to the situation in Russia is not expected to have a significant impact on overall demand.
– The feasibility study related to Tulikivi’s talc project in Suomussalmi is progressing.

– Future outlook: Net sales are expected to increase in 2022, and the comparable operating profit is expected to improve on 2021.

Comments by Heikki Vauhkonen, Managing Director:

The company’s order intake increased by 10% in the fourth quarter and was EUR 9.5 (8.6) million. The demand for the Karelia and Pielinen collections was particularly strong in Central Europe and Finland. The Covid-19 pandemic has increased consumers’ interest in renovation, holiday homes and low-rise housing in both Finland and export countries. The major increase in the price of energy for heating increased consumers’ interest in purchasing fireplaces.

The growth in sales was also attributable to successful development of online sales, an updated renovation concept and the streamlining of distribution channels in some export markets. The company’s order books increased significantly and stood at EUR 6.3 (3.2) million at the end of the review period.

Profitability improved despite the steep rises in the prices of steel, purchased components and energy during 2021, 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. Due to the challenging component and logistics situation towards the end of the year, deliveries were postponed until early 2022.

In the fourth quarter, ceramic colour options were introduced in the Karelia collection, as well as a Kermansavi collection based on 80% recycled material. The design and features of these collections are designed for customers in both the Finnish and export markets.

With the new collections, all Tulikivi collections meet the emission standards laid down in the EU Ecodesign Directive, which entered into force on 1 January 2022. The products’ compliance has been verified by RRF (Rhein-Ruhr Feuerstätten Prüfstelle GmbH), an accredited test facility in Germany. The new ceramic designs strengthen Tulikivi’s market position in Finland and expand the potential customer base in the export markets.

Tulikivi made progress during 2021 in its feasibility study of the Suomussalmi talc project, the purpose of which is to further specify the project’s profitability, environmental and mining plans for industrial operations. Rock mechanics surveys were carried out in the fourth quarter, as well as surveys required by the EIA (environmental impact assessment) procedure.

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

• Financial Statements Release 1-12 2021 (1)