Tulikivi Corporation Interim report 1–3/2024

Key projects progressing well, market situation challenging - Seite 2

 

Comments by Heikki Vauhkonen, Managing Director:

Net sales for the first quarter declined notably from the year before, when they were exceptionally high. Despite the decline in net sales, the operating profit for the first half of the year remained at a satisfactory level. This profitability was made possible by the role of exports in sales, good cost control and successful profitability measures. Political industrial action reduced net sales for the review period by approximately EUR 0.3 million.

During the period under review, the focus was on promoting key projects in Tulikivi’s strategy. The main objectives are to grow the market share in the Central European fireplace market, to increase the net sales of the sauna business, and move the Suomussalmi talc project forward to the investment stage.

In Central Europe, the expansion of the distribution network for the new compact Jero collection continued. The Jero collection has been very well received in all market areas, by retailers and consumers alike. Consumers in Central Europe prefer products in the stove-size range, and the new Jero collection will enable Tulikivi to reach new customer groups. Tulikivi has around 350 distributors in export countries. The aim is to launch sales of the Jero range in all sales offices and increase the number of dealers by 50% by the end of 2026.  In February, Tulikivi presented the new Hari model that is part of the Jero collection at the Verona Progetto Fuoco Fair for biomass combustion equipment. Deliveries of the product will start in autumn 2024. 

The sauna business focused on launching a new collection of electric sauna heaters on the market. It will be launched for domestic and export markets during spring 2024. The collection highlights the great features of Tulikivi sauna heaters: high-quality design, energy efficiency, original materials and safety.

The results of the product testing of finely ground talc products for plastic and paint applications were completed at the end of 2023. The results were presented to potential customers and users. Based on customer feedback, experimental products made from Suomussalmi’s Haaponen talc ore already widely meet the needs of the various customer segments and are suitable for use instead of existing talc products.  It is worth noting that these are the first experimental products, and that there has not yet been time to optimise their characteristics.