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2020-10-27

Suominen Corporation’s Interim Report for January 1 – September 30, 2020: Strong performance continued

Suominen Corporation Interim Report            October 27, 2020 at 9:30 a.m. (EET)

Suominen Corporation’s Interim Report for January 1 – September 30, 2020:

Strong performance continued

KEY FIGURES

 7-9/7-9/1-9/1-9/1-12/
 20202019202020192019
Net sales, EUR million115.4103.4347.8317.0411.4
EBITDA *18.17.847.426.233.7
EBITDA, %15.77.613.68.38.2
Comparable operating profit, EUR million12.91.131.06.78.1
Comparable operating profit, %11.21.18.92.12.0
Operating profit, EUR million12.91.131.06.78.1
Profit for the period, EUR million10.9-0.122.81.40.2
Cash flow from operations, EUR million20.117.439.124.229.9
Cash flow from operations per share, EUR0.350.300.680.420.52
Earnings per share, basic, EUR0.190.000.400.020.00
Return on invested capital, rolling 12 months, % 13.83.03.7
Gearing, %29.952.150.7
      

*2019 EBITDA restated.


In this financial report, figures shown in brackets refer to the comparison period last year if not otherwise stated.

July­–September 2020 in brief:

- Net sales increased 12% from the corresponding period of 2019 and were EUR 115.4 million (103.4)
- Operating profit increased significantly and was EUR 12.9 million (1.1)
- Cash flow from operations improved and was EUR 20.1 million (17.4)

January–September 2020 in brief:

- Net sales increased 10% from the corresponding period of 2019 and were EU 347.8 million (317.0)
- Operating profit increased significantly and was EUR 31.0 million (6.7)
- Cash flow from operations improved and was EUR 39.1 million (24.2)

Outlook for 2020 unchanged

Suominen reiterates the outlook presented on June 17, 2020, in which Suominen expects that in 2020 its comparable operating profit will improve significantly from 2019. In 2019, Suominen’s operating profit amounted to EUR 8.1 million. In financial years 2020 and 2019 Suominen had no items affecting the comparability of the operating profit.

Petri Helsky, President & CEO:


“Suominen achieved again a record high quarterly operating profit in the third quarter. Our operating profit increased to EUR 12.9 million (1.1) due to higher production and sales volumes and margin improvement through favorable raw material costs and improved efficiency. Development was positive at all sites, with also our variable cost optimization program continuing to yield results. 

Our net sales increased by 12% and amounted to EUR 115.4 million (103.4). Sales volumes increased but sales prices decreased following the lower raw material prices. Demand for wipes continued on a high level driven by the COVID-19 pandemic. Currencies impacted net sales by EUR -5.6 million.

The operating environment continued to be marked by the COVID-19 pandemic. Our primary focus continues to be to safeguard the health and safety of our employees and to maintain business continuity. We also ensured our financial position and liquidity by renewing our revolving credit facility in July.

The pandemic increased sales volumes in all our markets. We expect the higher demand to continue at least in the fourth quarter and early 2021. However, our sales in December are expected to be impacted negatively by the holiday season, as usual. In the longer term the pandemic may lead to a continued increase in demand for nonwovens for cleaning and disinfection products.

In August, we announced that we will increase our spunlace capacity in Europe by upgrading and restarting one of our existing production lines in Cressa, Italy. This investment will strengthen our capabilities in Europe and it is made in line with our strategy aiming for growth.

In September, we published our new sustainability targets and KPIs. Our sustainability agenda has four themes, People and safety, Sustainable nonwovens, Low-impact manufacturing and Corporate Citizenship and now we have ambitious targets for each of them.

During the quarter, we launched two new sustainable products: BIOLACE® Pure and BIOLACE® Combo. Both of these BIOLACE® products are made of renewable raw materials and both are biodegradable and compostable. BIOLACE® Pure is designed to be used in wipes and BIOLACE® Combo in absorbent hygiene products.  Our frontrunner status in nonwovens innovation was recognized also by Rockline,...

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