Suominen - Slowly improving, volumes needed
Suominen’s Q1 results were quite well in line with consensus estimates, and bottom line was slightly lower than we estimated. The EUR 8.3m gross profit came in quite close to our estimate, however increased operating expenses meant EBITDA was a bit softer. Suominen initiates a cost savings program which aims for EUR 10m in savings.
- Suominen Q1 revenue grew by 3.4% y/y to EUR 117.5m, compared to the EUR 117.0m/115.4m Evli/consensus estimates. Americas was EUR 73.6m vs our EUR 75.0m estimate while EMEA amounted to EUR 43.9m vs our EUR 42.0m estimate. Stock levels for Asian imports are increasing across both of Suominen’s business areas. Sales volumes declined y/y, but higher raw materials prices, improved sales mix and strong commercial execution led to increased sales prices. Currency fluctuations also had a positive impact of EUR 0.9m on top line.
- Gross profit landed at EUR 8.3m, compared to our EUR 8.8m estimate, and gross margin was 7.1% vs our 7.5% estimate.
- Comparable EBITDA was EUR 4.1m, compared to the EUR 5.3m/4.2m Evli/consensus estimates. Comparable EBIT amounted to EUR -0.3m vs the EUR 0.8m/-0.3m Evli/consensus estimates. Operating expenses rose. Currency fluctuations had a negative impact of EUR 0.5m on EBITDA.
- Suominen also initiates a cost savings program which aims to bring approximately EUR 10m savings across operations and global functions, to be realized over the next 24 months.
- Suominen guides its FY’25 comparable EBITDA to increase relative to the EUR 17.0m comparison figure (unchanged).