Suominen - EBITDA outlook lower than expected
Suominen’s Q4 revenue topped expectations, but profitability didn’t reach estimates. Suominen also guides decreasing EBITDA for FY ’22, particularly due to challenging Q1, while we had expected flat development.
- Q4 revenue was EUR 115.6m vs the EUR 113.0m/113.3m Evli/consensus estimates. Top line grew by 4% y/y. Europe amounted to EUR 46.7m vs our EUR 47.0m estimate, while Americas was EUR 68.9m vs our EUR 66.0m estimate.
- Gross profit was EUR 8.4m, compared to our EUR 14.4m estimate. Gross margin was therefore 7.3% vs our 12.7% estimate.
- EBITDA amounted to EUR 9.0m vs the EUR 12.1m/12.6m Evli/consensus estimates. EBIT was EUR 3.9m vs the EUR 7.1m/7.1m Evli/consensus estimates. Nonwovens’ sales prices were higher y/y, but sales volumes were lower and raw material, freight and energy prices also increased. Manufacturing and SG&A cost savings actions had a positive impact on the result. Other operating income and expenses were positively impacted by insurance compensations and adjustments to certain previous year accruals. Currencies impacted EBITDA negatively by EUR 0.5m.
- Suominen guides comparable EBITDA to decrease in FY ’22 (EUR 47.0m in 2021). Inventory levels remain high at certain customers, and the entire supply chain still faces operational issues due to the pandemic. These factors continue to have a negative impact on the result especially in Q1. We had estimated EUR 50.9m EBITDA for FY ’22.
- The BoD proposes EUR 0.20 per share dividend to be distributed.