Suominen - Still very modest results

Suominen’s Q4 results remained below estimates. Top line grew 15% y/y but was still soft relative to expectations, while cost inflation didn’t yet ease that much to translate into significantly better margins. Profitability hence stayed at a very modest level.
  • Suominen Q4 revenue grew by 15.1% y/y to EUR 133.1m vs the EUR 140.0m/140.4m Evli/consensus estimates. Americas came in at EUR 81.7m, compared to our EUR 84.0m estimate, while Europe amounted to EUR 51.4m vs our EUR 56.0m estimate. Currencies had a positive impact of EUR 9.3m on sales.
  • Gross profit was EUR 1.8m, compared to our EUR 14.0m estimate, and gross margin was therefore 1.4% vs our 10.0% estimate.
  • Adjusted EBITDA landed at EUR 5.0m in Q4, compared to the EUR 11.8m/9.8m Evli/consensus estimates. Meanwhile adjusted EBIT was EUR -0.2m vs our EUR 6.8m estimate.
  • Suominen guides its comparable EBITDA to increase in 2023 (EUR 15.3m in 2022).
  • The BoD proposes EUR 0.10 per share dividend to be paid for the year, compared to the EUR 0.15/0.08 Evli/consensus estimates.
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