Suominen - Still soft, but margins improve
Suominen’s Q3 revenue fell clearly below our estimate, however profitability figures landed surprisingly close to our estimates in this light. In our view the relatively high margins imply continued profitability improvement going towards next year.
- Suominen’s Q3 revenue decreased by 19% y/y to EUR 106.4m, compared to the EUR 129.0m/120.4m Evli/consensus estimates. Americas landed at EUR 70.9m vs our EUR 80.0m estimate. Europe amounted to EUR 35.6m while we estimated EUR 49.0m. Sales volumes decreased following the closure of the Mozzate plant in Italy in Q2. Currencies had a negative top line impact of EUR 5.2m. Sales prices continued to decrease following lower raw material prices.
- Gross profit came in at EUR 6.4m, compared to our EUR 8.4m estimate. Gross margin was 6.0% vs our 6.5% estimate, a relatively strong performance considering the low top line.
- Comparable EBITDA was EUR 5.2m vs our EUR 6.2m estimate. Comparable EBIT amounted to EUR 0.7m, compared to our EUR 1.2m estimate. Increased sales margins helped profitability.
- Suominen guides comparable EBITDA to increase in FY ’23 compared to previous year (unchanged). Suominen sees, at the moment, positive signs in its business environment in 2024.