Suominen - Profitability fell very low
Suominen’s Q2 profitability fell clearly below estimates as cost inflation continued again relatively strong. Profitability will nevertheless improve in Q3 and especially in Q4.
- Suominen Q2 revenue grew by 4% y/y to EUR 118.0m vs the EUR 116.0m/118.4m Evli/consensus estimates. The impact of currencies was EUR 8.0m. Americas landed at EUR 64.2m, compared to our EUR 67.0m estimate, while Europe amounted to EUR 53.8m vs our EUR 49.0m estimate. Overall sales volumes improved slightly q/q but remained well below y/y. Suominen has widened its product portfolio in the US for the production lines suffering from inventory imbalances and expects improved demand in H2’22 based on new contracted volumes.
- Gross profit came in at EUR 5.0m, compared to our EUR 9.3m estimate. Gross margin was 4.2% vs our 8.0% estimate. Q2 did not see an improvement in demand for the hard surface disinfectant products which have caused trouble in the US supply chain. Cost inflation also continued in Q2, especially in Europe.
- Q2 adjusted EBITDA was EUR 1.9m vs the EUR 7.0m/6.7m Evli/consensus estimates, while EBIT was EUR -2.9m vs our EUR 2.0m estimate. Fixed cost savings had a small positive impact on the result.
- Suominen guides comparable EBITDA to decrease clearly in 2022 (unchanged).