Suominen - Remained soft relative to estimates
Suominen’s Q1 results saw top line grow 6% y/y, driven by higher raw materials prices, but revenue as well as profitability remained soft relative to our estimates. Suominen retains its guidance, expecting incremental improvement as H2 should be better.
- Suominen Q1 revenue grew by 6% y/y to EUR 116.8m, compared to our EUR 120.0m estimate. Americas amounted to EUR 75.0m vs our EUR 77.0m estimate while Europe came in at EUR 41.8m, compared to our EUR 43.0m estimate. Sales prices increased, following higher raw materials prices, while sales volumes remained flat (despite Finnish port and Mozzate plant strikes) relative to the comparison period. Currencies had a positive EUR 3.4m impact on top line.
- Gross profit amounted to EUR 4.9m vs our EUR 8.4m estimate, meaning gross margin was 4.2% vs our 7.0% estimate. Raw materials prices declined q/q in Q1 and should remain flattish going forward.
- Adjusted EBITDA was EUR 2.6m, compared to our EUR 6.2m estimate, while adjusted EBIT landed at EUR -2.0m vs our EUR 1.2m estimate.
- Suominen’s guidance remains unchanged, expects its comparable EBITDA to increase this year (EUR 15.3m in FY ’22).