Suominen - Volume recovery further delayed
Suominen’s Q3 results were known beforehand since the company released preliminary information about them together with the negative profit warning. Suominen now specified that the EUR 3.4m comparable EBITDA would have been EUR 2.8m higher without the two incidents at its US plants. One positive was that sales margins continued to improve, however Suominen still lacks sufficient volumes for adequate levels of EBITDA.
- Suominen Q3 revenue declined by 10.5% y/y to EUR 99.8m, as disclosed earlier. Americas came in at EUR 60.3m, while EMEA was EUR 39.5m. Sales volumes decreased as volume recovery progressed slower than previously anticipated, but sales margins increased relative to the comparison period. Currencies had a negative impact of EUR 3.7m.
- Gross profit amounted to EUR 6.1m and gross margin was therefore 6.1%.
- Comparable EBITDA was EUR 3.4m, while comparable EBIT landed at EUR -0.7m. The negative effect of lower sales volumes on comparable EBITDA was offset by lower raw materials prices. Two major incidents affected Suominen’s US plants; the equipment failure and flooding had a total negative impact of EUR 2.8m on comparable EBITDA. Their impact on sales was EUR 5.4m.
- Suominen guides FY’25 comparable EBITDA to be lower compared to FY’24 (EUR 17.0m), as the company issued new guidance on Oct 15.