Suominen - Q3 EBITDA weaker than expected
Suominen’s Q3 revenue was close to estimates, but gross margin plunged 5.5%. EBITDA therefore fell to EUR 4.2m, way below estimates. Suominen nonetheless sees demand recovery is already underway. Suominen’s guidance implies Q4’21 EBITDA will roughly triple q/q.
- Q3 revenue fell by 14.5% to EUR 98.7m, compared to the EUR 96.0m/100.0m Evli/consensus estimates. Americas’ top line was EUR 57.0m vs our EUR 55.0m estimate, whereas Europe came in at EUR 41.6m vs our EUR 41.0m estimate. Suominen sees volume recovery is already happening as it began in late Q3, even a bit earlier than expected. Suominen expects Q4’21 volumes to be a bit lower than in Q2’21 but clearly above the pre-pandemic levels.
- Gross profit amounted to EUR 5.5m vs our EUR 11.5m estimate. Gross margin was 5.5%, compared to our 12.0% estimate.
- Q3 EBITDA was EUR 4.2m vs the EUR 9.5m/9.0m Evli/consensus estimates, while EBIT was EUR -0.8m vs the EUR 4.5m/4.0m Evli/consensus estimates. There were some cost savings measures.
- Suominen guides comparable FY ’21 EBITDA to decrease and sees it landing at EUR 47-53m (EUR 60.9m in FY ’20). The range’s midpoint suggests Q4 EBITDA will be EUR 11.9m, compared to our EUR 10.1m estimate. The current FY ’21 consensus EBITDA estimate is EUR 53.1m.