Interim report 1–9/2020: Net sales on the previous year’s level, operating profit improves
- The Tulikivi Group’s third-quarter net sales were EUR 6.9 million (EUR 6.6 million, Jul–Sep 2019) and EUR 20.1 million (EUR 19.9 million, Jan–Sep 2019) in the review period.
- The Tulikivi Group's operating profit for the third quarter was EUR 0.6 (0.1) million, and the operating profit for the review period was EUR 0.6 (-0.3) million.
- The Tulikivi Group’s third-quarter profit before taxes was EUR 0.4 million (-0.1 million) and EUR 0.0 (-0.9) million for the review period.
- Net cash flow from operating activities was EUR 0.8 (-0.1) million in the third quarter and EUR 1.5 (0.5) million in January–September.
- Order books at the end of the review period stood at EUR 4.0 (3.8) million.
- Nordic Talc, a Tulikivi subsidiary, is preparing a feasibility study for the talc project in Suomussalmi.
- Future outlook: Net sales are expected to amount to EUR 27–29 million in 2020, and the comparable operating profit is expected to be positive.
Key financial ratios
Operating profit/loss, MEUR
Operating profit/loss without impairment loss, MEUR
Profit before tax, MEUR
Total comprehensive income for the period, MEUR
Earnings per share, Euro
Net cash flow from operating activities, MEUR
Equity ratio, %
Net indebtness ratio, %
Return on investments, %
Comments by Heikki Vauhkonen, Managing Director:
Net sales increased in the third quarter as the Covid-19 pandemic increased consumers' interest in renovation, holiday homes and single family housing in both Finland and export countries.
Profitability improved as a result of price increases, productivity measures and savings in fixed costs.
The company’s incoming orders totalled EUR 7.9 (7.2) million in the third quarter. In Finland, order flow grew in all product groups. Demand growth was greatest for sauna and interior decoration stone products. Central European and Russian exports also developed favourably during the third quarter. Tulikivi’s order books at the end of the review period amounted to EUR 4.0 (3.8) million.
The Covid-19 pandemic has so far had a positive effect on demand for Tulikivi products, but the strengthening of the second wave of the pandemic has led to restrictions in Central Europe, which may hinder business operations in the second half of the year.
The Tulikivi Corporation subsidiary Nordic Talc Oy, founded in April 2020, is planning a 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. At the same time, the aim is to obtain the necessary external funding for the start-up of Nordic Talc Oy's operations and the industrial exploitation of the project. In addition, funding applications have been submitted to the Kainuu Centre for Economic Development, Transport and the Environment (ELY Centre) and Business Finland.
Board of Directors
Distribution: Nasdaq Helsinki
Further information: Heikki Vauhkonen, Managing Director, tel. +358 (0)207 636 555