Suominen - Still quite soft even if improving
Suominen’s Q4 was expected to show some further recovery in earnings, but its pace still turned out to be quite slow as revenue landed a bit above estimates while the EUR 5.3m EBITDA missed estimates by some EUR 2m. Suominen’s earnings will continue to improve this year, however the comparison figures are not challenging.
- Suominen’s Q4 revenue fell by 14% y/y to EUR 114.9m vs the EUR 112.0m/112.0m Evli/consensus estimates. Americas amounted to EUR 72.3m, compared to our EUR 73.0m estimate, while Europe was EUR 42.6m vs our EUR 39.0m estimate. Sales volumes increased slightly relative to the comparison period, while sales prices decreased clearly due to the lower raw material prices. Currencies had a negative sales impact of EUR 3.5m.
- Gross profit landed at EUR 8.4m, compared to our EUR 10.1m estimate. Gross margin was therefore 7.4% vs our 9.0% estimate. Actions to improve operational efficiency in plants continue.
- Comparable EBITDA came in at EUR 5.3m vs the EUR 7.7m/7.0m Evli/consensus estimates. Comparable EBIT was EUR 0.7m, compared to the EUR 2.7m/2.4m Evli/consensus estimates. Sales margins improved y/y.
- Suominen guides improving comparable EBITDA for FY ’24 (EUR 15.8m in FY ’23). Suominen sees some positive signals from the market and customers.
- The BoD proposes a dividend per share of EUR 0.10 to be distributed for FY ’23, compared to the EUR 0.10/0.08 Evli/consensus estimates.