Suominen - Q2 remained very soft
Suominen’s Q2 results showed some improvement in terms of operational efficiency, however top line fell clearly short of estimates and profitability is yet to improve in a meaningful way.
- Suominen Q2 revenue decreased by 4.5% y/y to EUR 112.7m vs the EUR 121.0m/119.6m Evli/consensus estimates. Americas came in at EUR 69.8m, compared to our EUR 78.0m estimate, while Europe was EUR 42.9m vs our EUR 43.0m estimate. Sales volumes were slightly higher relative to the comparison period, but sales prices decreased following lower raw material prices. Currencies had an impact of EUR -1.6m.
- Gross profit amounted to EUR 3.1m, compared to our EUR 8.5m estimate, therefore gross margin was 2.7% vs our 7.0% estimate.
- Comparable EBITDA landed at EUR 2.7m vs the EUR 6.3m/4.5m Evli/consensus estimates, whereas comparable EBIT was EUR -2.1m vs our EUR 1.3m estimate. SG&A costs decreased. Production at the Mozzate plant ended in April and Suominen continues to improve other plants’ operational efficiency. The Nakkila investment project related to a sustainable products production line proceeds as planned and will be completed in H2’23.
- Suominen guides FY ‘23 comparable EBITDA to increase relative to the EUR 15.3m comparison figure (guidance unchanged).