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[August 2006]
Sales and Profit Increases for Kermansavi's Owners
Sales for the Tulikivi Group (Juuka, Finland) rose by 34.2% in the January-June 2006 period. Growth in the group´s comparable sales was 20.3%. Sales for the report period totalled 37.2 million euro (27.7 million euro). The comparable sales were 33.3 million euro. The group´s profit before taxes amounted to 3.3 million euro (1.7 million euro). The comparable profit before taxes was 3.5 million euro.
Regarding changes in the group's structure and segment reporting, Tulikivi Corporation acquired all the shares in the ceramic stove tile and utensil manufacturer Kermansavi Oy on 3 April 2006. The group's business operations are now divided into three business segments, namely the Soapstone Fireplaces Business, the Natural Stone Business and the Ceramic Products Business. The Soapstone Fireplaces Business supplies soapstone fireplaces and stone lining for heaters. The Natural Stone Products Business supplies interior stone products for homes and delivers stone to construction sites. The Ceramic Products Business produces Kermansavi stoves and utensils.
The Soapstone Fireplaces Business posted sales of 29.5 million euro, the Natural Stone Products Business sales of 3.8 million euro and the Ceramic Products Business sales of 3.9 million euro.
The group's operating profit was 3.4 million euro. The Soapstone Fireplaces Business posted an operating profit of 5.1 million euro, the Natural Stone Products Business an operating profit of 0.1 million euro and the Ceramic Products Business an operating loss of 0.2 million euro, while unallocated expenses totalled 1.6 million euro. The Ceramic Products Business's result was affected by non-recurring expenses of 0.4 million euro resulting from the acquisition cost of the shares of Kermansavi Oy to inventories and the order book.
The cost of the acquisition of all of Kermansavi Oy's shares in order to expand its product range and potential clientele was 13.1 million euro, of which 2.1 million euro was paid in Tulikivi Corporation's Series A shares. In addition to the purchase price, the acquisition cost of Kermansavi Oy's shares includes a total of 0.4 million euro expenses resulting from the acquisition. The shareholders' equity of Kermansavi Oy at the time of the acquisition was 4.3 million euro. In addition to the carrying amounts of asset and liability items, 6.1 million euro of the expense from the acquisition has been allocated to distribution channels and the brand, 1.8 million euro to machinery and equipment, 0.4 million euro to inventories and the order book, 3.0 million euro to goodwill and 2.2 million euro to deferred tax expenses.
The group employed an average of 638 people during the report period and 759 people at its close. The figure also includes Kermansavi Oy's personnel, which totalled 156 people at the close of the report period.
www.tulikivi.com
ENDS