Suominen - Earnings guidance revised down
Suominen’s Q1 results landed relatively close to estimates, although on the softer side. The company revises its earnings guidance down due to intensified cost inflation, while customer inventory levels in the US are normalizing but not as fast as expected.
- Q1 revenue was EUR 110.3m, a decline of 4% y/y, compared to the EUR 109.0m/114.7m Evli/consensus estimates. Americas amounted to EUR 61.7m vs our EUR 64.0m estimate while Europe was EUR 48.5m, compared to our EUR 45.0m estimate.
- Gross profit was EUR 6.6m vs our EUR 7.1m estimate. Gross margin therefore amounted to 6.0%, compared to our 6.5% estimate.
- EBITDA landed at EUR 3.3m vs the EUR 4.8m/4.4m Evli/consensus estimates. EBIT was EUR -1.3m vs the EUR -0.2m/-0.6m Evli/consensus estimates.
- Suominen now guides EBITDA to decrease clearly this year. The war has intensified cost inflation. Customer inventory levels in the US have normalized to an extent, although somewhat slower than expected. Suominen expects demand to improve in H2.