Suominen - Margins continued to improve
Suominen’s Q2 revenue was higher than our estimate, while gross profit landed basically as we expected, however general costs were still large enough to leave the EUR 5.0m comparable EBITDA a bit soft relative to our estimate.
- Suominen Q2 revenue increased by 5% y/y to EUR 118.7m vs the EUR 117.0m/116.0m Evli/consensus estimates. Americas amounted to EUR 75.7m, compared to our EUR 72.0m estimate, while EMEA was EUR 43.0m vs our EUR 45.0m estimate. Sales volumes increased y/y but sales prices declined due to lower raw materials prices. New products (launched in the last three years) made up more than 37% of sales in H1. Currencies had a positive impact of EUR 0.6m on revenue.
- Gross profit amounted to EUR 8.9m, compared to our EUR 9.1m estimate. Gross margin was 7.5% vs our 7.8% estimate. Suominen has focused on improving production efficiency and the sustainable nonwovens production line investment in Bethune is proceeding as planned.
- Comparable EBITDA was EUR 5.0m vs the EUR 6.1m/5.5m Evli/consensus estimates. Meanwhile comparable EBIT landed at EUR 0.4m vs the EUR 1.6m/1.3m Evli/consensus estimates. Sales, marketing and administration expenses were higher than we estimated. Sales margins improved y/y.
- Suominen guides FY ‘24 comparable EBITDA to increase y/y relative to the EUR 15.8m comparison figure (unchanged).