TULIKIVI CORPORATION  INTERIM REPORT  1 NOV 2024 AT 1 PM

- The Tulikivi Group’s net sales were EUR 7.2 million (EUR 9.1 million, 7–9/2023) in the third quarter and EUR 25.0 million (EUR 35.4 million, 1–9/2023) in the review period.
- The Tulikivi Group’s operating profit was EUR 0.5 (1.3) million in the third quarter and EUR 1.6 (4.9) million in the review period.
- The Tulikivi Group’s profit before taxes was EUR 0.3 million (1.1 million) in the third quarter and EUR 1.0 (4.4) million in the review period.
- The equity ratio at the end of the review period was 50.9 per cent (47.5).
- Order books stood at EUR 3.1 (11.5) million at the end of the review period.
- The Suomussalmi talc project made good progress
- Future outlook: Net sales in 2024 are expected to be EUR 33 to 37 million and the comparable operating profit is expected to be EUR 2 to 3 million.

Comments by Heikki Vauhkonen, Managing Director:

In the third quarter, net sales declined significantly from the exceptionally high figures the year before as market recovery was slower than anticipated, particularly in Germany. Despite the decline in net sales, the relative profitability for the year was at a satisfactory level. This profitability was made possible by the role of exports in net sales and good cost control.

During the period under review, Tulikivi advanced its strategic projects as planned. The strategic projects are to grow the market share in the Central European fireplace market, to increase the net sales of the sauna business, and advance the Suomussalmi talc project to the investment stage.

In Central Europe, the expansion of the sales and distribution network for the new compact Jero collection continued. Consumers in Central Europe prefer products in the stove-size range, and the new Jero collection will enable Tulikivi to reach new customer groups. The aim is to increase the total number of dealers by 50 per cent from 330, the number at the end of 2023, by the end of 2026. Another aim is for all sales offices to offer the Jero collection. The number of sales offices has increased by more than 10 per cent in 2024.

During the review period, the Jero collection received product safety approval for the US market. Thanks to its advanced combustion technology, the collection was approved for consumer investment subsidies in Italy. These approvals facilitate the expansion of the sales and distribution network.

The sauna business focused on launching a new collection of electric sauna heaters on the market. The collection highlights the great features of Tulikivi sauna heaters: high-quality design, energy efficiency, original materials and safety. In addition, the sauna organisation was strengthened with the appointment of Mikko Kuoppa as Head of Sauna Business.

The plans and studies completed for the Suomussalmi talc project during the period under review reinforced confidence in the project’s economic competitiveness. The updated quarrying plan and the schedule suggest that the amount of adjoining rock will be significantly less than the amount of ore, and that the ratio can be kept constant over the life of the mine. Competitiveness is supported by the planned modern enrichment plant, which could be located in the immediate vicinity of the quarry. The project’s conditions will also be positively influenced by the price level of the European talc market and its development.

The Kainuu Centre for Economic Development, Transport and the Environment (ELY), the contact authority, gave public notice of the environmental impact assessment (EIA report) of the Suomussalmi talc deposit exploitation project in July 2024. The period of the notice ended at the end of August, and we expect to receive the contact authority’s reasoned conclusion in November.

During the past quarter, the company has continued work on the reports and plans required for the environmental permit application. The company and the local electricity distribution network operator have continued the nature inventories and environmental assessments required for a new transmission line. The new transmission line would provide Nordic Talc with the power needed for its production operations.

TULIKIVI CORPORATION

Board of Directors

Distribution: Nasdaq Helsinki
Key media
www.tulikivi.com

Further information: Heikki Vauhkonen, Managing Director, tel. +358 (0)40 524 5593