Suominen - Figures fell short of estimates
Suominen’s revenue grew 5% y/y in Q3, which was below estimates. There were also some EUR 3.0m in additional costs due to major operational challenges, which caused the EUR 3.3m comparable EBITDA to fall significantly below estimates. Suominen retains its guidance, and as the market looks quite stable Q4 should still see improvement albeit from a low comparison period. Suominen’s earnings have a lot more way to go before reaching satisfactory levels.
- Suominen Q3 revenue grew by 5% y/y to EUR 111.6m, compared to the EUR 119.0m/114.7m Evli/consensus estimates, while Americas amounted to EUR 69.5m vs our EUR 78.0m estimate. EMEA was EUR 42.1m vs our EUR 41.0m estimate. Sales volumes, sales prices and sales margins increased y/y. Currencies had a negative top line impact of EUR 1.4m. Suominen’s target market is stable, although the global economic sentiment causes some uncertainty. Any short-term market changes are likely to remain modest.
- Gross profit was EUR 5.1m, compared to our EUR 10.9m estimate. Gross margin amounted to 4.6% vs our 9.2% estimate.
- Comparable EBITDA landed at EUR 3.3m vs the EUR 7.9m/6.8m Evli/consensus estimates. Comparable EBIT was EUR -1.5m, compared to the EUR 3.4m/2.3m Evli/consensus estimates. Suominen had major operational issues in Q3 which caused unplanned production downtime and additional expenses. These issues, which were immediately addressed, had a negative EBITDA impact of around EUR 3.0m.
- Suominen guides FY’24 comparable EBITDA to increase y/y (unchanged).