Tulikivi Corporation

Tulikivi Corporation Interim report 1–3/2025: Difficult operating environment, increasing order flow

TULIKIVI CORPORATION  INTERIM REPORT  9 MAY 2025 AT 1 PM

- The Tulikivi Group’s first-quarter net sales were EUR 6.0 million (EUR 8.5 million, 1–3/2024).
- The Tulikivi Group’s first-quarter operating profit was EUR -0.7 (0.3) million and the profit before taxes was EUR -0.9 (0.1) million.
- The equity ratio at the end of the review period was 49.4 per cent (49.5).
- Order books stood at EUR 4.3 (5.4) million at the end of the review period.
- The environmental permit process for the Suomussalmi talc project is making progress.
- Future outlook: Net sales and the comparable operating profit for 2025 are expected to improve on 2024.

Comments by Heikki Vauhkonen, Managing Director:

In the first quarter, net sales remained low due to the seasonal nature of the fireplace sector and general economic uncertainty, which was exacerbated by international tariff disputes. Because of the uncertainty, consumers postponed renovation and new construction projects. The company’s order flow continued to increase moderately during the quarter and was EUR 7.8 (7.6) million. Sales of Tulikivi sauna heaters and interior design stones also made positive progress, while demand for subcontracted cladding stones for room-heating stoves continued to decline. Due to the decline in net sales, the relative profitability for the first quarter of the year was weak. The company's balance sheet position remained strong and its equity ratio was 49.4%.

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 heater-size range, and the new Jero collection will enable Tulikivi to reach new customer groups. The aim is to increase the total number of dealer sales offices by 50 per cent from 330 (in 2023) by the end of 2026. The number of sales outlets continued to grow during the first half of the year to around 400 dealers.

The sauna business focused on launching a new collection of electric sauna heaters on the market. The new Kevo collection was introduced at the Interbad trade fair in October 2024, and its features attracted a lot of interest in the market. The work to launch the collection continued in the first quarter by starting cooperation with new retailers in Finland and abroad. The collection highlights the great features of Tulikivi sauna heaters: high-quality design, energy efficiency, original materials and safe exterior surfaces that do not become hot.

In the Suomussalmi talc project, the focus during the review period was on making progress with the environmental permit and on process design and producing a larger sample of enriched talc powder. The environmental permit application for the talcum powder project was submitted to the Regional Office of Northern Finland after the review period on 9 May 2025.

TULIKIVI CORPORATION

Board of Directors

Distribution: Nasdaq Helsinki
Key media

www.tulikivigroup.com

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

Attachment

• Interim report 1-3 2025