Tulikivi’s Profits Drop as Market Demand Normalizes After Exceptional Surge

The Finnish-based stove company Tulikivi experienced a decrease in its turnover towards the end of 2023, which consequently resulted in a diminished overall outcome.

The company, also known as Brimstone, unveiled its financial performance for the fourth quarter of 2023 this Friday.

Brimstone’s turnover witnessed a fall, settling at 9.9 million euros in the final quarter, spanning from October to December. This is a significant descent from the same period the preceding year, where the turnover stood at 13.8 million euros. The company Inderes had previously predicted that the turnover would potentially decrease to 11.2 million euros.

Furthermore, Tulikivi’s operating profit also declined, reaching 0.6 million euros, a considerable decrease from the 1.5 million euros reported in the same period during the previous year. The financial analysts from Inderes had anticipated a drop in operating profit, albeit to a slightly higher figure of EUR 1.0 million.

There was also a decrease in the earnings per share, which ended up at EUR 0.01 per share. This marks a decrease from the same quarter of the previous year, where earnings per share were EUR 0.04. Inderes had projected the earnings per share to be 0.01.

At the end of the review period, the company’s order book was valued at 6.8 million euros, a decrease from the 17.2 million euros reported during the same period the preceding year.

The CEO of Tulikivi, Heikki Vauhkonen, offered insight into the company’s performance in the results report. He stated, “After the exceptionally high demand for fireplaces that started in 2022, the market situation calmed down in the second half of 2023. This was influenced by the subsidence of high energy prices during the summer. In addition, high interest rates significantly reduced new construction and housing sales, which led to a decrease in consumer construction projects in Finland and Europe”.

Looking ahead, the company has projected its turnover for 2024 to be within the range of 37–44 million euros. The comparable operating result is estimated to be around 3–5 million euros.