Suominen Corporation’s Interim Report for January 1 – September 30, 2023: EBITDA improved from Q2/2023, outlook unchanged
Suominen Corporation Interim Report on October 27, 2023 at 9:30 a.m. (EEST)
Suominen Corporation’s Interim Report for January 1 – September 30, 2023:
EBITDA improved from Q2/2023, outlook unchanged
KEY FIGURES
| 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ | |
| 2023 | 2022 | 2023 | 2022 | 2022 | |
| Net sales, EUR million | 106.4 | 131.9 | 335.9 | 360.2 | 493.3 |
| Comparable EBITDA, EUR million | 5.2 | 5.1 | 10.5 | 10.3 | 15.3 |
| Comparable EBITDA, % | 4.9 | 3.9 | 3.1 | 2.9 | 3.1 |
| EBITDA, EUR million | 5.2 | 5.1 | 5.9 | 10.3 | 14.3 |
| EBITDA, % | 4.9 | 3.9 | 1.8 | 2.9 | 2.9 |
| Comparable operating profit, EUR million | 0.7 | 0.2 | -3.4 | -4.0 | -4.2 |
| Comparable operating profit, % | 0.6 | 0.2 | -1.0 | -1.1 | -0.8 |
| Operating profit, EUR million | 0.6 | 0.2 | -8.2 | -4.0 | -9.0 |
| Operating profit, % | 0.6 | 0.2 | -2.4 | -1.1 | -1.8 |
| Profit for the period, EUR million | 0.8 | -0.4 | -11.4 | -5.1 | -13.9 |
| Cash flow from operations, EUR million | 8.0 | -10.8 | 17.6 | -1.6 | 14.0 |
| Cash flow from operations per share, EUR | 0.14 | -0.19 | 0.31 | -0.03 | 0.24 |
| Earnings per share, basic, EUR | 0.01 | -0.01 | -0.20 | -0.09 | -0.24 |
| Return on invested capital, rolling 12 months, % | − | − | -6.7 | 0.0 | -4.2 |
| Gearing, % | − | − | 40.1 | 39.9 | 37.4 |
In this interim report, figures shown in brackets refer to the comparison period of the previous year if not otherwise stated.
July–September 2023 in brief:
- Net sales decreased by 19% from the corresponding period of 2022 and were EUR 106.4 million (131.9)
- Comparable EBITDA improved slightly to EUR 5.2 million (5.1)
- Cash flow from operations improved to EUR 8.0 million (-10,8)
January–September 2023 in brief:
- Net sales decreased by 7% and were EUR 335.9 million (360.2)
- Comparable EBITDA increased slightly to EUR 10.5 million (10.3)
- Cash flow from operations improved and was EUR 17.6 million (-1.6)
Outlook for 2023 unchanged
Suominen expects that its comparable EBITDA (earnings before interest, taxes, depreciation and amortization) in 2023 will increase from 2022. In 2022, Suominen’s comparable EBITDA was EUR 15.3 million.
Tommi Björnman, President & CEO:
“The third quarter showed signs of improved profitability. Our quarterly comparable EBITDA improved slightly to EUR 5.2 million (5.1) being at the highest level since the fourth quarter of 2021. EBITDA improvement is mainly due to the increased sales margins.
Our net sales were EUR 106.4 million (131.9) in the third quarter. Sales prices decreased following the decline in raw material prices. Sales volumes decreased following the closure of the Mozzate plant in Italy in the second quarter. Currencies impacted the net sales negatively by EUR 5.2 million.
Our commercial and operational excellence improvements are proceeding according to plan and have gradually started to contribute to the result. Going forward, we will continue to systematically execute our improvement action plan.
In the third quarter we were awarded a silver level rating from the EcoVadis sustainability assessment for the second time. We improved our rating by five points and this result places us in the top 5% of companies in the manufacture of other textiles industry rated by EcoVadis.
Our strong ability to innovate and meet market needs is reflected in the share of new products of our net sales, which continued on a good level and exceeded 35% in the third quarter.
Looking ahead, in addition to our internal efficiency measures we will continue leveraging our innovative portfolio to serve our customers and extract the value to improve our profitability. Despite the challenging global economy, we see at the moment positive signs in our business environment in 2024.”
NET SALES
July–September 2023
In July–September 2023, Suominen’s net sales decreased from the comparison period by 19% to EUR 106.4 million (131.9). Sales prices decreased following the decline in raw material prices. Sales volumes decreased following the closure of the Mozzate plant in Italy in the second quarter. Currencies impacted the net sales negatively by EUR 5.2 million.
Suominen has two business areas, Americas and Europe. Net sales of the Americas business area amounted to EUR 70.9 million (80.3) and net sales of the Europe business area to EUR 35.6 million (51.7).
January–September 2023
In January–September 2023, Suominen’s net sales declined from the comparison period by 7% and amounted to EUR 335.9 million (360.2). Sales prices decreased following the decline in raw material prices. Sales volumes decreased following the closure of the Mozzate plant in Italy in the second quarter. Currencies impacted the net sales negatively by EUR 3.3 million.
Net sales of the Americas business area amounted to EUR 215.7 million (206.3) and net sales of the Europe business area to EUR 120.2 million (154.1).
EBITDA, OPERATING PROFIT AND RESULT
July–September 2023
Comparable EBITDA (earnings before interest, taxes, depreciation and amortization) was EUR 5.2 million (5.1). EBITDA was EUR 5.2 million (5.1). The items affecting comparability of EBITDA during Q3 totaled EUR -0.0 million.
Comparable operating profit increased from the comparison period and amounted to EUR 0.7 million (0.2). Operating profit increased from the comparison period and amounted to EUR 0.6 million (0.2). The items affecting comparability of operating profit totaled EUR -0.0 million.
Profit before income taxes was EUR -0.5 million (0.1), and profit for the reporting period was EUR 0.8 million (-0.4). Income taxes for the period were EUR +1.3 million (-0.5).
January–September 2023
Comparable EBITDA (earnings before interest, taxes, depreciation and amortization) was EUR 10.5 million (10.3). Lower sales volumes were offset by higher sales margins. Currency impact on EBITDA was EUR +0.7 million.
EBITDA declined to EUR 5.9 million (10.3) due to non-recurring items arising from the closure of production at the Mozzate plant in Italy. The items affecting comparability of EBITDA totaled EUR -4.6 million and consisted mainly of dismissal and restoration expenses.
Comparable operating profit improved and was EUR -3.4 million (-4.0). Operating profit decreased and was EUR -8.2 million (-4.0). The items affecting comparability of operating profit totaled EUR -4.8 million.
Profit before income taxes was EUR -12.2 million (-4.3), and profit for the reporting period was
EUR -11.4 million (-5.1).
Income taxes for the period were EUR +0.8 million (-0.8).
FINANCING
The Group’s net interest-bearing liabilities at nominal value amounted to EUR 52.2 million (65.8) at the end of the review period. The gearing ratio was 40.1% (39.9%) and the equity ratio 40.9% (39.8%).
In January–September, net financial expenses were EUR -4.0 million (-0.3), or -1.2% (-0.1%) of net sales. Fluctuations in exchange rates decreased the net financial expenses by EUR 0.0 million (in 2022, decreased by EUR 4.4 million).
Cash flow from operations in July–September was EUR 8.0 million (-10.8) and in January–September EUR 17.6 million (-1.6), representing a cash flow per share of EUR 0.31 (-0.03). The improvement in the cash flow from operations for January–September was driven by improvement in net working capital, especially by the decrease of working capital tied to the inventory.
In the third quarter the change in net working capital was EUR +4.5 million (-13.9). The change in net working capital in January–September was EUR +16.6 million (-7.3).
CAPITAL EXPENDITURE
In January–September, the gross capital expenditure totaled EUR 8.9 million (7.4) and the largest item was related to the growth investment initiative at the Nakkila plant in Finland. Other investments were mainly for maintenance.
Depreciation, amortization and impairment losses for the review period amounted to EUR 14.1 million (14.3).
PROGRESS IN SUSTAINABILITY
During the third quarter of 2023, we were awarded a silver level rating from the EcoVadis sustainability assessment. This was the second time that we completed the EcoVadis assessment, and we improved our rating by five points. This result places us in the top 5% of companies in the manufacture of other textiles industry rated by EcoVadis.
By the end of September there have been 5 LTAs at Suominen sites. We will continue our systematic safety work and preventive actions. We will also initiate a special safety awareness campaign to remind the importance of attitude, behavior and operating model in everyday safety. The campaign is set to start in Q4.
We systematically measure our employee engagement and collect feedback by conducting an engagement survey, Suominen Vibe, annually. This year's Suominen Vibe survey started in October.
We are constantly improving our production efficiency and the efficient utilization of natural resources. In the third quarter we continued our actions towards our targets to reduce energy consumption, greenhouse gas emissions, water consumption and waste to landfill by 20% per ton of product by 2025 compared to the base year of 2019.
Sustainability is at the core of our R&D and we are continuously developing new innovative solutions into our already comprehensive portfolio of sustainable nonwovens. Our target is to increase the sales of sustainable products by 50% by 2025 compared to 2019, and to have at least 10 sustainable product launches per year.
Suominen reports progress in its sustainability KPIs annually.
As part of our Annual Report 2022 published in March 2023, we reported on the progress of our sustainability performance. Our sustainability reporting in 2022 was done in accordance with the GRI Standards of the Global Reporting Initiative and it was assured by an external partner.
INFORMATION ON SHARES AND SHARE CAPITAL
Share capital
The number of Suominen’s registered shares was 58,259,219 shares on September 30, 2023, equaling to a share capital of EUR 11,860,056.00.
Share trading and price
The number of Suominen Corporation shares traded on Nasdaq Helsinki from January 1 to September 30, 2023, was 2,312,906 shares, accounting for 4.0% of the average number of shares (excluding treasury shares). The highest price was EUR 3.48, the lowest EUR 2.51, and the volume-weighted average price EUR 2.87. The closing price at the end of review period was EUR 2.85. The market capitalization (excluding treasury shares) was EUR 164.4 million on September 30, 2023.
Treasury shares
On September 30, 2023, Suominen Corporation held 566,760 treasury shares.
As a share-based payment plan vested, in total 189,783 shares were transferred to the participants of the plan in February.
In accordance with the resolution by the Annual General Meeting, in total 21,949 shares were transferred in May to the members of the Board of Directors as their remuneration payable in shares.
The portion of the remuneration of the members of the Board of Directors paid in shares
The Annual General Meeting held on April 3, 2023, decided that 75% of the annual remuneration of the members of the Board of Directors is paid in cash and 25% in Suominen Corporation’s shares.
The number of shares forming the remuneration portion payable in shares was determined based on the share value in the stock exchange trading maintained by Nasdaq Helsinki Ltd, calculated as the trade volume-weighted average quotation of the share during the two-week period immediately following the date on which the Interim Report of January‒March 2023 of the company was published. The shares were given out of the treasury shares held by the company by the decision of the Board of Directors on May 10, 2023.
Share-based incentive plans for the management and key employees
The Group management and key employees participate in the company’s share-based long-term incentive plans. The plans are described in more detail in the Financial Statements and in the Remuneration Report, available on the company’s website www.suominen.fi.
Company's Performance Share Plan currently includes three 3-year performance periods, calendar years 2021–2023, 2022–2024 and 2023–2025. The aim of the Performance Share Plan is to combine the objectives of the shareholders and the persons participating in the plan in order to increase the value of the company in long-term, to build loyalty to the company and to offer them competitive reward plans based on earning and accumulating the company’s shares.
Performance Share Plan: Ongoing performance periods
| Performance Period | 2021–2023 | 2022–2024 | 2023–2025 |
| Incentive based on | Total Shareholder Return (TSR) | Total Shareholder Return (TSR) | Total Shareholder Return (TSR) |
| Potential reward payment | Will be paid partly in Suominen shares and partly in cash in spring 2024 | Will be paid partly in Suominen shares and partly in cash in spring 2025 | Will be paid partly in Suominen shares and partly in cash in spring 2026 |
| Participants | 15 people | 21 people | 23 people |
| Maximum number of shares | 232,000 | 222,000 | 687,000 |
The President & CEO of the company must hold 50% of the net number of shares given on the basis of the plan, as long as his or her shareholding in total corresponds to the value of his or her annual gross salary. A member of the Executive Team must hold 50% of the net number of shares given on the basis of the plan, as long as his or her shareholding in total corresponds to the value of half of his or her annual gross salary. Such a number of shares must be held as long as the participant’s employment or service in a group company continues.
The President & CEO’s share-based incentive plan
The Board of Directors of Suominen Corporation resolved on May 19 to establish a new share-based incentive plan for the company’s President & CEO. The aim of the plan is to align the objectives of the shareholders and the President & CEO in order to increase the value of Suominen in the long-term, to retain the President & CEO at the company, and to offer him a competitive reward plan that is based on acquiring, receiving and accumulating the company's shares.
Under the plan the President & CEO is expected to own or acquire up to 30,000 shares of Suominen Corporation at a price formed in public trading on Nasdaq Helsinki. Suominen will match the share investment by way of the President & CEO receiving, without consideration, up to 60,000 matching shares (gross, including also the proportion to be paid in cash).
The plan includes three vesting periods, June 1, 2023–June 1, 2024, June 1, 2023–June 1, 2025, and June 1, 2023–June 1, 2026. The potential reward will be paid partly in shares and partly in cash in three equal installments after each vesting period, provided that the President & CEO’s service in the company is in force at the time of the reward payment. The cash proportion is intended to cover taxes and tax-related costs arising from the rewards to the President & CEO.
ANNUAL GENERAL MEETING
The Annual General Meeting (AGM) of Suominen Corporation was held on April 3, 2023.
The AGM adopted the Financial Statements and the Consolidated Financial Statements for the financial year 2022 and discharged the members of the Board of Directors and the President & CEO from liability for the financial year 2022. The AGM approved the Remuneration Report for the governing bodies. The AGM also approved the amendment of the company’s Articles of Association in such a way that it enables the organization of General Meetings in the future also entirely without a meeting venue as a remote meeting.
The AGM decided, in accordance with the proposal by the Board of Directors, that a dividend of EUR 0.10 per share will be paid.
The AGM confirmed the remuneration of the Board of Directors. The Chair will be paid an annual fee of EUR 70,000 and the Deputy Chair and other Board members an annual fee of EUR 33,000. Chair of the Audit Committee will be paid an additional fee of EUR 10,000. Further, the members of the Board will receive a fee for each Board and Committee meeting as follows: EUR 500 for each meeting held in the home country of the respective member, EUR 1,000 for each meeting held elsewhere than in the home country of the respective member and EUR 500 for each meeting held as a telephone conference.
75% of the remuneration is paid in cash and 25% in Suominen Corporation’s shares. Compensation for expenses is paid in accordance with the company's valid travel policy.
The AGM decided that the number of Board members remains unchanged at six (6). Mr. Andreas Ahlström, Mr. Aaron Barsness, Mr. Björn Borgman, Mr. Jaakko Eskola, Ms. Nina Linander were re-elected as members of the Board. Ms. Laura Remes was elected as a new member of the Board.
Mr. Jaakko Eskola was re-elected as the Chair of the Board of Directors.
Ernst & Young Oy, Authorised Public Accountant firm, was re-elected as the auditor of the company for the next term of office in accordance with the Articles of Association. Ernst & Young Oy appointed Mr. Toni Halonen, Authorised Public Accountant, as the principally responsible auditor of the company.
The AGM authorized the Board of Directors to decide on the repurchase of the company’s own shares and to resolve on the issuance of shares and granting of options and the issuance of special rights entitling to shares. The terms and conditions of the authorization are explained later in this half-year report.
Suominen published a stock exchange release on April 3, 2023, concerning the resolutions of the Annual General Meeting and the organizing meeting of the Board of Directors. The stock exchange release and an introduction of the new Board member can be viewed on Suominen’s website at www.suominen.fi.
In compliance with the resolution of the Annual General Meeting, on April 14, 2023, Suominen paid out dividends in total of EUR 5.8 million for 2022, corresponding to EUR 0.10 per share.
Organizing meeting and permanent committees of the Board of Directors
In its organizing meeting held after the AGM, the Board of Directors elected Andreas Ahlström as Deputy Chair of the Board.
The Board of Directors elected from among its members the members for the Audit Committee and Personnel and Remuneration Committee. Nina Linander was re-elected as the Chair of the Audit Committee and Andreas Ahlström was re-elected as member. Laura Remes was elected as a new member. Jaakko Eskola was re-elected as the Chair of the Personnel and Remuneration Committee and Björn Borgman and Aaron Barsness were re-elected as members.
Authorizations of the Board of Directors
The AGM authorized the Board of Directors to decide on the repurchase a maximum of 1,000,000 of the company’s own shares. The company’s own shares shall be repurchased otherwise than in proportion to the holdings of the shareholders by using the non-restricted equity through trading on regulated market organized by Nasdaq Helsinki Ltd at the market price prevailing at the time of acquisition. The shares shall be repurchased and paid in accordance with the rules of Nasdaq Helsinki Ltd and Euroclear Finland Ltd. The shares shall be repurchased to be used in company’s share-based incentive programs, in order to disburse the remuneration of the members of the Board of Directors, for use as consideration in acquisitions related to the company’s business, or to be held by the company, to be conveyed by other means or to be cancelled. The Board of Directors shall decide on other terms and conditions related to the repurchase of the company’s own shares. The repurchase authorization shall be valid until June 30, 2024, and it revokes all earlier authorizations to repurchase company’s own shares.
The AGM authorized the Board of Directors to decide on issuing new shares and/or conveying the company’s own shares held by the company and/or granting options and other special rights referred to in Chapter 10, Section 1 of the Finnish Companies Act. New shares may be issued, and the company’s own shares may be conveyed to the company’s shareholders in proportion to their current shareholdings in the company; or by waiving the shareholder’s pre-emption right, through a directed share issue if the company has a weighty financial reason to do so, such as, for example, using the shares as consideration in possible acquisitions or other arrangements related to the company’s business, as financing for investments, using shares as part of the company’s incentive program or using the shares for disbursing the portion of the Board members’ remuneration that is to be paid in shares. The new shares may also be issued without payment to the company itself. New shares may be issued and/or company’s own shares held by the company, or its group company may be conveyed at the maximum amount of 5,000,000 shares in aggregate.
The Board of Directors may grant options and other special rights referred to in Chapter 10, Section 1 of the Finnish Companies Act, which carry the right to receive against payment new shares or own shares held by the company. The right may also be granted to the company’s creditor in such a manner that the right is granted on condition that the creditor’s receivable is used to set off the subscription price (“Convertible Bond”). However, options and other special rights referred to in Chapter 10, Section 1 of the Companies Act cannot be granted as part of the company’s remuneration plan.
The maximum number of new shares that may be subscribed and own shares held by the company that may be conveyed by virtue of the options and other special rights granted by the company is 5,000,000 shares in total which number is included in the maximum number stated above.
The authorizations shall revoke all earlier authorizations regarding share issue and issuance of special rights entitling to shares. The Board of Directors shall decide on all other terms and conditions related to the authorizations. The authorizations shall be valid until June 30, 2024.
NOTIFICATIONS UNDER CHAPTER 9, SECTION 5 OF THE SECURITIES MARKET ACT
During the review period Suominen received no notifications under Chapter 9, Section 5 of the Securities Market Act.
CHANGES IN THE EXECUTIVE TEAM
Suominen announced on August 22, 2023, that Ms. Lynda Kelly, SVP, Americas & Business Development leaves Suominen for medical reasons. Mr. Markku Koivisto was appointed as interim SVP, Americas in addition to his current role as SVP, Europe, and R&D. The change was effective immediately.
NOMINATION BOARD
Suominen’s three largest registered shareholders Ahlstrom Capital B.V., Etola Group Oy and Oy Etra Invest Ab have nominated the following members to the Shareholders’ Nomination Board:
- Lasse Heinonen, President & CEO of A. Ahlström Oy, as a member appointed by Ahlstrom Capital B.V.
- Mikael Etola, CEO, Etola-Yhtiöt, as a member appointed by Etola Group Oy and Oy Etra Invest Ab
Jaakko Eskola, Chair of Suominen’s Board of Directors, serves as the third member of the Nomination Board. The shareholders entitled to appoint members to the Nomination Board were determined on the basis of the registered holdings in the company’s shareholders' register on September 1, 2023.
In its organizing meeting on September 4, 2023, the Nomination Board elected Lasse Heinonen as the Chair of the Nomination Board. The Nomination Board decided to invite Peter Seligson, Chair of the Board of Directors of A. Ahlström Oy, to attend the Nomination Board’s meetings as an advisor.
SHORT TERM RISKS AND UNCERTAINTIES
Regarding the war in Ukraine, the direct impact to Suominen’s business is minor as we have no customers nor suppliers in Russia, Belarus or Ukraine. Suominen as a company is mostly affected by the indirect economic impacts of the war. We follow the crisis in the Middle East and monitor possible impact to our business.
Suominen’s other risks and uncertainties include but are not limited to: risks related to manufacturing, competition, raw material prices and availability and customer specific volumes and credits, changes in legislation, political environment or economic conditions and investments, and financial risks.
A more detailed description of risks is available in Suominen’s Annual Report 2022 at suominen.fi/investors.
BUSINESS ENVIRONMENT
Suominen’s nonwovens are, for the most part, used in daily consumer goods, such as wipes as well as in hygiene and medical products. In these target markets of Suominen, the general economic situation determines the development of consumer demand, even though the demand for consumer goods is not very cyclical in nature. North America and Europe are the largest market areas for Suominen. In addition, the company operates in the South American markets. The growth in the demand for nonwovens has typically exceeded the growth of gross domestic product by a couple of percentage points.
We see some positive signs in nonwovens market, but the overall global economic uncertainty and fierce competition makes the longer-term visibility challenging. The raw material prices continued to decline in Q3/2023 from the previous quarter (Q2/2023) and in the short term we are not expecting major changes in the raw material prices, but longer-term visibility is unclear. It remains to be seen how the current economic climate impacts the end consumer demand and consumer preferences regarding wipes. Historically, the wipes market has been rather steady despite the general economic situation.
OUTLOOK FOR 2023
Suominen expects that its comparable EBITDA (earnings before interest, taxes, depreciation and amortization) in 2023 will increase from 2022. In 2022, Suominen’s comparable EBITDA was EUR 15.3 million.
CORPORATE GOVERNANCE AND REMUNERATION REPORT
Suominen has prepared a separate Corporate Governance Statement and a Remuneration Report for 2022, which comply with the recommendations of the Finnish Corporate Governance Code for listed companies. The statements also cover other central areas of corporate governance. The statements have been published on Suominen's website, separately from the Report of the Board of Directors, at www.suominen.fi.
AUDIOCAST AND CONFERENCE CALL
Tommi Björnman, President & CEO, and Janne Silonsaari, CFO, will present the result in English in an audiocast and a conference call for analyst, investors, and media on the same day at 11:00 a.m. (EEST). The audiocast can be followed at https://suominen.videosync.fi/2023-q3/register. The recording of the audiocast and the presentation material will be available after the event at www.suominen.fi.
Conference call participants can access the teleconference by registering at http://palvelu.flik.fi/teleconference/?id=10010547. The phone numbers and a conference ID to access the conference will be provided after the registration.
The event cannot be attended on the spot.
NEXT FINANCIAL REPORT
Suominen Corporation will publish its Financial Statements Release 2024 on February 6, 2024 approximately at 9:30 a.m. (EET).
EVENTS AFTER THE REPORTING PERIOD
Thomas Olsen appointed SVP, Americas business area
Thomas Olsen, MBA, has been appointed Senior Vice President, Americas business area. He will be a member of Suominen's Executive Team and report to President and CEO Tommi Björnman. Olsen will start in his new position on November 1, 2023.
SUOMINEN GROUP JANUARY 1 – SEPTEMBER 30, 2023
The figures in this interim report are mainly presented in EUR thousands. As a result of rounding differences, the figures presented in the tables do not necessarily add up to total.
This interim report has not been audited.
This interim report has been prepared in accordance with the principles defined in IAS 34 Interim Financial Reporting. The principles for preparing the interim report are the same as those used for preparing the consolidated financial statements for 2022, with the exception of the effect of the new accounting standards and interpretations which have been applied from 1.1.2023.
The new or amended standards or interpretations applicable from 1.1.2023 are not material for Suominen Group.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| EUR thousand | 30.9.2023 | 30.9.2022 | 31.12.2022 |
| Assets | |||
| Non-current assets | |||
| Goodwill | 15,496 | 15,496 | 15,496 |
| Intangible assets | 6,969 | 10,662 | 9,709 |
| Property, plant and equipment | 116,599 | 127,537 | 116,195 |
| Right-of-use assets | 11,898 | 14,890 | 11,902 |
| Equity instruments | 421 | 421 | 421 |
| Other non-current receivables | 69 | 88 | 93 |
| Deferred tax assets | 2,043 | 1,871 | 693 |
| Total non-current assets | 153,495 | 170,964 | 154,510 |
| Current assets | |||
| Inventories | 42,472 | 69,265 | 63,261 |
| Trade receivables | 59,776 | 75,920 | 66,648 |
| Other current receivables | 10,132 | 10,569 | 8,857 |
| Assets for current tax | 1,511 | 3,700 | 662 |
| Cash and cash equivalents | 51,603 | 84,664 | 49,508 |
| Total current assets | 165,494 | 244,118 | 188,935 |
| Total assets | 318,989 | 415,082 | 343,445 |
| Equity and liabilities | |||
| Equity | |||
| Share capital | 11,860 | 11,860 | 11,860 |
| Share premium account | 24,681 | 24,681 | 24,681 |
| Reserve for invested unrestricted equity | 75,692 | 75,692 | 75,692 |
| Fair value and other reserves | 316 | 265 | 265 |
| Exchange differences | 4,236 | 13,220 | 2,678 |
| Retained earnings | 13,498 | 39,469 | 30,740 |
| Total equity attributable to owners of the parent | 130,283 | 165,188 | 145,916 |
| Liabilities | |||
| Non-current liabilities | |||
| Deferred tax liabilities | 10,164 | 13,376 | 11,730 |
| Liabilities from defined benefit plans | 185 | 595 | 424 |
| Non-current provisions | 4,457 | 1,956 | 1,950 |
| Non-current lease liabilities | 10,579 | 12,353 | 11,215 |
| Debentures | 49,410 | 49,257 | 49,295 |
| Total non-current liabilities | 74,795 | 77,537 | 74,614 |
| Current liabilities | |||
| Current lease liabilities | 3,245 | 3,141 | 2,855 |
| Other current interest-bearing liabilities | 40,000 | − | 40,000 |
| Debentures | − | 84,990 | − |
| Liabilities for current tax | 557 | 3,829 | 289 |
| Trade payables and other current liabilities | 70,109 | 80,398 | 79,771 |
| Total current liabilities | 113,911 | 172,358 | 122,915 |
| Total liabilities | 188,706 | 249,895 | 197,529 |
| Total equity and liabilities | 318,989 | 415,082 | 343,445 |
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
| EUR thousand | 7-9/ 2023 | 7-9/ 2022 | 1-9/ 2023 | 1-9/ 2022 | 1-12/ 2022 |
| Net sales | 106,447 | 131,937 | 335,913 | 360,225 | 493,298 |
| Cost of goods sold | -100,087 | -126,723 | -321,631 | -343,446 | -474,718 |
| Gross profit | 6,360 | 5,214 | 14,282 | 16,780 | 18,579 |
| Other operating income | 2,537 | 3,007 | 4,276 | 4,103 | 5,739 |
| Sales, marketing and administration expenses | -6,879 | -6,754 | -21,118 | -21,551 | -28,932 |
| Research and development expenses | -1,010 | -925 | -2,996 | -2,571 | -3,503 |
| Other operating expenses | -367 | -340 | -2,619 | -729 | -841 |
| Operating profit | 640 | 202 | -8,175 | -3,969 | -8,958 |
| Net financial expenses | -1,152 | -78 | -3,982 | -284 | -2,923 |
| Profit before income taxes | -512 | 125 | -12,158 | -4,253 | -11,881 |
| Income taxes | 1,288 | -524 | 798 | -801 | -1,983 |
| Profit for the period | 776 | -398 | -11,359 | -5,054 | -13,863 |
| Earnings per share, EUR | |||||
| Basic | 0.01 | -0.01 | -0.20 | -0.09 | -0.24 |
| Diluted | 0.01 | -0.01 | -0.20 | -0.09 | -0.24 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| EUR thousand | 7-9/ 2023 | 7-9/ 2022 | 1-9/ 2023 | 1-9/ 2022 | 1-12/ 2022 |
| Profit for the period | 776 | -398 | -11,359 | -5,054 | -13,863 |
| Other comprehensive income: | |||||
| Other comprehensive income that will be subsequently reclassified to profit or loss | |||||
| Exchange differences | 2,589 | 8,117 | 1,640 | 20,439 | 8,873 |
| Income taxes related to other comprehensive income | -307 | -725 | -83 | -1,642 | -618 |
| Total | 2,282 | 7,392 | 1,557 | 18,797 | 8,255 |
| Other comprehensive income that will not be subsequently reclassified to profit or loss | |||||
| Remeasurements of defined benefit plans | -17 | − | -17 | − | 137 |
| Income taxes related to other comprehensive income | − | − | − | − | -125 |
| Total | -17 | − | -17 | − | 12 |
| Total other comprehensive income | 2,264 | 7,392 | 1,540 | 18,797 | 8,267 |
| Total comprehensive income for the period | 3,041 | 6,994 | -9,819 | 13,743 | -5,596 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| EUR thousand | Share capital | Share premium account | Reserve for invested unrestricted equity | Exchange differences |
| Equity 1.1.2023 | 11,860 | 24,681 | 75,692 | 2,678 |
| Profit for the period | − | − | − | − |
| Other comprehensive income | − | − | − | 1,557 |
| Total comprehensive income | − | − | − | 1,557 |
| Distribution of dividend | − | − | − | − |
| Share-based payments | − | − | − | − |
| Conveyance of treasury shares | − | − | − | − |
| Transfers | − | − | − | − |
| Equity 30.9.2023 | 11,860 | 24,681 | 75,692 | 4,236 |
| EUR thousand | Fair value and other reserves | Retained earnings | Total equity attributable to owners of the parent |
| Equity 1.1.2023 | 265 | 30,740 | 145,916 |
| Profit for the period | − | -11,359 | -11,359 |
| Other comprehensive income | − | -17 | 1,540 |
| Total comprehensive income | − | -11,376 | -9,819 |
| Distribution of dividend | − | -5,767 | -5,767 |
| Share-based payments | − | -100 | -100 |
| Conveyance of treasury shares | − | 52 | 52 |
| Transfers | 51 | -51 | − |
| Equity 30.9.2023 | 316 | 13,498 | 130,283 |
| EUR thousand | Share capital | Share premium account | Reserve for invested unrestricted equity | Exchange differences | ||||
| Equity 1.1.2022 | 11,860 | 24,681 | 75,692 | -5,577 | ||||
| Profit for the period | − | − | − | − | ||||
| Other comprehensive income | − | − | − | 18,797 | ||||
| Total comprehensive income | − | − | − | 18,797 | ||||
| Distribution of dividend | − | − | − | − | ||||
| Share-based payments | − | − | − | − | ||||
| Acquisition of treasury shares | − | − | − | − | ||||
| Conveyance of treasury shares | − | − | − | − | ||||
| Transfers | − | − | − | − | ||||
| Equity 30.9.2022 | 11,860 | 24,681 | 75,692 | 13,220 | ||||
| EUR thousand | Fair value and other reserves | Retained earnings | Total equity attributable to owners of the parent | |||||
| Equity 1.1.2022 | -7 | 56,549 | 163,199 | |||||
| Profit for the period | − | -5,054 | -5,054 | |||||
| Other comprehensive income | − | − | 18,797 | |||||
| Total comprehensive income | − | -5,054 | 13,743 | |||||
| Distribution of dividend | − | -11,492 | -11,492 | |||||
| Share-based payments | − | 35 | 35 | |||||
| Acquisition of treasury shares | − | -352 | -352 | |||||
| Conveyance of treasury shares | − | 55 | 55 | |||||
| Transfers | 272 | -272 | − | |||||
| Equity 30.9.2022 | 265 | 39,469 | 165,188 | |||||
| EUR thousand | Share capital | Share premium account | Reserve for invested unrestricted equity | Exchange differences |
| Equity 1.1.2022 | 11,860 | 24,681 | 75,692 | -5,577 |
| Profit for the period | − | − | − | − |
| Other comprehensive income | − | − | − | 8,255 |
| Total comprehensive income | − | − | − | 8,255 |
| Distribution of dividend | − | − | − | − |
| Share-based payments | − | − | − | − |
| Acquisition of treasury shares | − | − | − | − |
| Conveyance of treasury shares | − | − | − | − |
| Transfers | − | − | − | − |
| Equity 31.12.2022 | 11,860 | 24,681 | 75,692 | 2,678 |
| EUR thousand | Fair value and other reserves | Retained earnings | Total equity attributable to owners of the parent |
| Equity 1.1.2022 | -7 | 56,549 | 163,199 |
| Profit for the period | − | -13,863 | -13,863 |
| Other comprehensive income | − | 12 | 8,267 |
| Total comprehensive income | − | -13,851 | -5,596 |
| Distribution of dividend | − | -11,492 | -11,492 |
| Share-based payments | − | 106 | 106 |
| Acquisition of treasury shares | − | -352 | -352 |
| Conveyance of treasury shares | − | 52 | 52 |
| Transfers | 272 | -272 | − |
| Equity 31.12.2022 | 265 | 30,740 | 145,916 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| EUR thousand | 1-9/2023 | 1-9/2022 | 1-12/2022 |
| Cash flow from operations | |||
| Profit for the period | -11,359 | -5,054 | -13,863 |
| Total adjustments to profit for the period | 19,084 | 15,539 | 28,037 |
| Cash flow before changes in net working capital | 7,725 | 10,486 | 14,174 |
| Change in net working capital | 16,583 | -7,275 | 7,753 |
| Financial items | -3,837 | -2,009 | -4,745 |
| Income taxes | -2,824 | -2,755 | -3,156 |
| Cash flow from operations | 17,647 | -1,553 | 14,027 |
| Cash flow from investments | |||
| Investments in property, plant and equipment and intangible assets | -8,060 | -7,415 | -9,764 |
| Sales proceeds from property, plant and equipment and intangible assets | 33 | 0 | 30 |
| Cash flow from investments | -8,027 | -7,415 | -9,734 |
| Cash flow from financing | |||
| Drawdown of current interest-bearing liabilities | 200,000 | − | 40,000 |
| Repayment of non-current interest-bearing liabilities | − | − | -85,000 |
| Repayment of current interest-bearing liabilities | -202,469 | -2,325 | -3,003 |
| Acquisition of treasury shares | − | -379 | -379 |
| Dividends paid | -5,767 | -11,492 | -11,492 |
| Cash flow from financing | -8,236 | -14,197 | -59,875 |
| Change in cash and cash equivalents | 1,384 | -23,165 | -55,582 |
| Cash and cash equivalents at the beginning of the period | 49,508 | 101,357 | 101,357 |
| Effect of changes in exchange rates | 712 | 6,472 | 3,732 |
| Change in cash and cash equivalents | 1,384 | -23,165 | -55,582 |
| Cash and cash equivalents at the end of the period | 51,603 | 84,664 | 49,508 |
KEY RATIOS
| 7-9/ 2023 | 7-9/ 2022 | 1-9/ 2023 | 1-9/ 2022 | 1-12/ 2022 | |
| Change in net sales, % * | -19.3 | 33.7 | -6.7 | 9.9 | 11.3 |
| Gross profit, as percentage of net sales, % | 6.0 | 4.0 | 4.3 | 4.7 | 3.8 |
| Comparable EBITDA, as percentage of net sales, % | 4.9 | 3.9 | 3.1 | 2.9 | 3.1 |
| EBITDA, as percentage of net sales, % | 4.9 | 3.9 | 1.8 | 2.9 | 2.9 |
| Comparable operating profit, as percentage of net sales, % | 0.6 | 0.2 | -1.0 | -1.1 | -0.8 |
| Operating profit, as percentage of net sales, % | 0.6 | 0.2 | -2.4 | -1.1 | -1.8 |
| Net financial items, as percentage of net sales, % | -1.1 | -0.1 | -1.2 | -0.1 | -0.6 |
| Profit before income taxes, as percentage of net sales, % | -0.5 | 0.1 | -3.6 | -1.2 | -2.4 |
| Profit for the period, as percentage of net sales, % | 0.7 | -0.3 | -3.4 | -1.4 | -2.8 |
| Gross capital expenditure, EUR thousand | 5,170 | 3,390 | 8,854 | 7,380 | 9,713 |
| Depreciation, amortization and impairment losses, EUR thousand | 4,534 | 4,922 | 14,075 | 14,253 | 23,245 |
| Return on equity, rolling 12 months, % | − | − | -14.2 | -1.6 | -8.8 |
| Return on invested capital, rolling 12 months, % | − | − | -6.7 | 0.0 | -4.2 |
| Equity ratio, % | − | − | 40.9 | 39.8 | 42.5 |
| Gearing, % | − | − | 40.1 | 39.9 | 37.4 |
| Average number of personnel (FTE - full time equivalent) | − | − | 690 | 706 | 707 |
| Earnings per share, EUR, basic | 0.01 | -0.01 | -0.20 | -0.09 | -0.24 |
| Earnings per share, EUR, diluted | 0.01 | -0.01 | -0.20 | -0.09 | -0.24 |
| Cash flow from operations per share, EUR | 0.14 | -0.19 | 0.31 | -0.03 | 0.24 |
| Equity per share, EUR | − | − | 2.26 | 2.87 | 2.54 |
| Number of shares, end of period, excluding treasury shares | − | − | 57,692,459 | 57,480,727 | 57,480,727 |
| Share price, end of period, EUR | − | − | 2.85 | 2.64 | 3.00 |
| Share price, period low, EUR | − | − | 2.51 | 2.46 | 2.36 |
| Share price, period high, EUR | − | − | 3.48 | 5.27 | 5.27 |
| Volume weighted average price during the period, EUR | − | − | 2.87 | 3.64 | 3.57 |
| Market capitalization, EUR million | − | − | 164.4 | 151.7 | 172.4 |
| Number of traded shares during the period | − | − | 2,312,906 | 9,800,783 | 10,902,032 |
| Number of traded shares during the period, % of average number of shares | − | − | 4.0 | 17.1 | 19.0 |
| * Compared with the corresponding period in the previous year. | |||||
| 30.9.2023 | 30.9.2022 | 31.12.2022 | |||
| Interest-bearing net debt, EUR thousands | |||||
| Non-current interest-bearing liabilities, nominal value | 60,579 | 62,353 | 61,215 | ||
| Current interest-bearing liabilities, nominal value | 43,245 | 88,141 | 42,855 | ||
| Interest-bearing receivables and cash and cash equivalents | -51,603 | -84,664 | -49,508 | ||
| Interest-bearing net debt | 52,221 | 65,830 | 54,562 | ||
CALCULATION OF KEY RATIOS AND ALTERNATIVE PERFORMANCE MEASURES
Key ratios per share are either IFRS key ratios (earnings per share) or required by Ordinance of the Ministry of Finance in Finland or alternative performance measures (cash flow from operations per share).
Some of the other key ratios Suominen publishes are alternative performance measures. An alternative performance measure is a key ratio which has not been defined in IFRS standards. Suominen believes that the use of alternative performance measures provides useful information for example to investors regarding the Group's financial and operating performance and makes it easier to make comparisons between the reporting periods.
The link between the components of the key ratios per share and the consolidated financial statements is presented in the consolidated financial statements of 2022. The link between the components of the alternative performance measures and the consolidated financial statements is presented in Suominen’s Annual Report for 2022.
Calculation of key ratios per share
Earnings per share
| Basic earnings per share (EPS) | = | Profit for the period | |
| Share-issue adjusted average number of shares excluding treasury shares | |||
| Diluted earnings per share (EPS) | Profit for the period | ||
| = | Average diluted share-issue adjusted number of shares excluding treasury shares | ||
| EUR thousand | 30.9.2023 | 30.9.2022 | 31.12.2022 | |
| Profit for the period | -11,359 | -5,054 | -13,863 | |
| Average share-issue adjusted number of shares | 57,643,772 | 57,425,760 | 57,439,615 | |
| Average diluted share-issue adjusted number of shares excluding treasury shares | 57,715,794 | 57,510,358 | 57,533,196 | |
| Earnings per share | ||||
| EUR | ||||
| Basic | -0.20 | -0.09 | -0.24 | |
| Diluted | -0.20 | -0.09 | -0.24 |
Cash flow from operations per share
| Cash flow from operations per share | Cash flow from operations | |
| = | Share-issue adjusted number of shares excluding treasury shares, end of reporting period | |
| 30.9.2023 | 30.9.2022 | 31.12.2022 | ||
| Cash flow from operations, EUR thousand | 17,647 | -1,553 | 14,027 | |
| Share-issue adjusted number of shares excluding treasury shares, end of reporting period | 57,692,459 | 57,480,727 | 57,480,727 | |
| Cash flow from operations per share, EUR | 0.31 | -0.03 | 0.24 |
Equity per share
| Equity per share | Total equity | |
| = | Share-issue adjusted number of shares excluding treasury shares, end of reporting period | |
| 30.9.2023 | 30.9.2022 | 31.12.2022 | ||
| Total equity attributable to owners of the parent, EUR thousand | 130,283 | 165,188 | 145,916 | |
| Share-issue adjusted number of shares excluding treasury shares, end of reporting period | 57,692,459 | 57,480,727 | 57,480,727 | |
| Equity per share, EUR | 2.26 | 2.87 | 2.54 |
Market capitalization
| Market capitalization | = | Number of shares at the end of reporting period excluding treasury shares x share price at the end of period |
| 30.9.2023 | 30.9.2022 | 31.12.2022 | ||
| Number of shares at the end of reporting period excluding treasury shares | 57,692,459 | 57,480,727 | 57,480,727 | |
| Share price at end of the period, EUR | 2.85 | 2.64 | 3.00 | |
| Market capitalization, EUR million | 164.4 | 151.7 | 172.4 | |
Share turnover
| Share turnover | = | The proportion of number of shares traded during the period to weighted average number of shares excluding treasury shares |
| 30.9.2023 | 30.9.2022 | 31.12.2022 | ||
| Number of shares traded during the period | 2,312,906 | 9,800,783 | 10,902,032 | |
| Average number of shares excluding treasury shares | 57,643,772 | 57,425,760 | 57,439,615 | |
| Share turnover, % | 4.0 | 17.1 | 19.0 | |
Calculation of key ratios and alternative performance measures
Operating profit and comparable operating profit
| Operating profit (EBIT) | = | Profit before income taxes + net financial expenses | ||
| Comparable operating profit (EBIT) | = | Profit before income taxes + net financial expenses, adjusted with items affecting comparability | ||
In order to improve the comparability of result between reporting periods, Suominen presents comparable operating profit as an alternative performance measure. Operating profit is adjusted with material items that are considered to affect comparability between reporting periods. These items include, among others, impairment losses or reversals of impairment losses, gains or losses from the sales of property, plant and equipment or intangible assets or other assets and restructuring costs. Suominen did not have any items affecting comparability in January – September 2022.
| Comparable operating profit | ||||
| EUR thousand | 30.9.2023 | 30.9.2022 | 31.12.2022 | |
| Operating profit | -8,175 | -3,969 | -8,958 | |
| + Dismissal costs affecting comparability | 2,207 | − | − | |
| + Restoration costs affecting comparability | 2,344 | − | − | |
| + Other costs affecting comparability | 104 | − | − | |
| + Impairment losses of property, plant and equipment, affecting comparability of result | 8 | − | 2,288 | |
| + Impairment losses of right-of-use assets, affecting comparability of result | 108 | − | 1,536 | |
| + Impairment losses of inventories, affecting comparability of result | -16 | − | 971 | |
| Comparable operating profit | -3,420 | -3,969 | -4,163 |
EBITDA and comparable EBITDA
| EBITDA | = | EBIT + depreciation, amortization and impairment losses |
| Comparable EBITDA | = | EBIT + depreciation, amortization and impairment losses, adjusted with items affecting comparability |
| EUR thousand | 30.9.2023 | 30.9.2022 | 31.12.2022 | |
| Operating profit | -8,175 | -3,969 | -8,958 | |
| + Depreciation, amortization and impairment losses | 14,075 | 14,253 | 23,245 | |
| EBITDA | 5,899 | 10,284 | 14,287 | |
| EBITDA | 5,899 | 10,284 | 14,287 | |
| + Costs affecting comparability of result | 4,639 | − | 971 | |
| Comparable EBITDA | 10,538 | 10,284 | 15,257 | |
Gross capital expenditure
| EUR thousand | 30.9.2023 | 30.9.2022 | 31.12.2022 | |
| Increases in intangible assets | 126 | 410 | 438 | |
| Increases in property, plant and equipment | 8,728 | 6,971 | 9,275 | |
| Gross capital expenditure | 8,854 | 7,380 | 9,713 | |
Interest-bearing net debt
It is the opinion of Suominen that presenting interest-bearing liabilities not only at amortized cost but also at nominal value gives relevant additional information to the investors.
| Interest-bearing net debt | = | Interest-bearing liabilities at nominal value - interest-bearing receivables - cash and cash equivalents |
| EUR thousand | 30.9.2023 | 30.9.2022 | 31.12.2022 | |
| Interest-bearing liabilities | 103,234 | 149,741 | 103,365 | |
| Tender and issuance costs of the debentures | 590 | 753 | 705 | |
| Cash and cash equivalents | -51 603 | -84,664 | -49,508 | |
| Interest-bearing net debt | 52,221 | 65,830 | 54,562 | |
| Interest-bearing liabilities | 103,234 | 149,741 | 103,365 | |
| Tender and issuance costs of the debentures | 590 | 753 | 705 | |
| Nominal value of interest-bearing liabilities | 103,824 | 150,494 | 104,069 | |
Return on equity (ROE), %
| Return on equity (ROE), % | = | Profit for the reporting period (rolling 12 months) x 100 |
| Total equity (quarterly average) |
| EUR thousand | 30.9.2023 | 30.9.2022 | 31.12.2022 | |
| Profit for the reporting period (rolling 12 months) | -20,169 | -2,516 | -13,863 | |
| Total equity attributable to owners of the parent 30.9.2022 / 30.9.2021 / 31.12.2021 | 165,188 | 159,682 | 163,199 | |
| Total equity attributable to owners of the parent 31.12.2022 / 31.12.2021 / 31.3.2022 | 145,916 | 163,199 | 153,504 | |
| Total equity attributable to owners of the parent 31.3.2023 / 31.3.2022 / 30.6.2022 | 140,131 | 153,504 | 158,098 | |
| Total equity attributable to owners of the parent 30.6.2023 / 30.6.2022 / 30.9.2022 | 127,236 | 158,098 | 165,188 | |
| Total equity attributable to owners of the parent 30.9.2023 / 30.9.2022 / 31.12.2022 | 130,283 | 165,188 | 145,916 | |
| Average | 141,751 | 159,934 | 157,181 | |
| Return on equity (ROE), % | -14.2 | -1.6 | -8.8 |
Invested capital
| Invested capital | = | Total equity + interest-bearing liabilities - cash and cash equivalents |
| EUR thousand | 30.9.2023 | 30.9.2022 | 31.12.2022 | |
| Total equity attributable to owners of the parent | 130,283 | 165,188 | 145,916 | |
| Interest-bearing liabilities | 103,234 | 149,741 | 103,365 | |
| Cash and cash equivalents | -51,603 | -84,664 | -49,508 | |
| Invested capital | 181,914 | 230,264 | 199,773 | |
Return on invested capital (ROI), %
| Return on invested capital (ROI), % | = | Operating profit (rolling 12 months) x 100 |
| Invested capital, quarterly average |
| EUR thousand | 30.9.2023 | 30.9.2022 | 31.12.2022 | |
| Operating profit (rolling 12 months) | -13,165 | -94 | -8,958 | |
| Invested capital 30.9.2022 / 30.9.2021 / 31.12.2021 | 230,264 | 205,786 | 210,975 | |
| Invested capital 31.12.2022 / 31.12.2021 / 31.3.2022 | 199,773 | 210,975 | 205,806 | |
| Invested capital 31.3.2023 / 31.3.2022 / 30.6.2022 | 194,290 | 205,806 | 210,561 | |
| Invested capital 30.6.2023 / 30.6.2022 / 30.9.2022 | 182,005 | 210,561 | 230,264 | |
| Invested capital 30.9.2023 / 30.9.2022 / 31.12.2022 | 181,914 | 230,264 | 199,773 | |
| Average | 197,649 | 212,679 | 211,476 | |
| Return on invested capital (ROI), % | -6.7 | 0.0 | -4.2 |
Equity ratio, %
| Equity ratio, % | = | Total equity x 100 | |
| Total assets - advances received |
| EUR thousand | 30.9.2023 | 30.9.2022 | 31.12.2022 | |
| Total equity attributable to owners of the parent | 130,283 | 165,188 | 145,916 | |
| Total assets | 318,989 | 415,082 | 343,445 | |
| Advances received | -104 | -108 | -74 | |
| 318,885 | 414,975 | 343,371 | ||
| Equity ratio, % | 40.9 | 39.8 | 42.5 |
Gearing, %
| Gearing, % | = | Interest-bearing net debt x 100 | |
| Total equity | |||
| EUR thousand | 30.9.2023 | 30.9.2022 | 31.12.2022 | |
| Interest-bearing net debt | 52,221 | 65,830 | 54,562 | |
| Total equity attributable to owners of the parent | 130,283 | 165,188 | 145,916 | |
| Gearing, % | 40.1 | 39.9 | 37.4 |
NET SALES BY GEOGRAPHICAL MARKET AREA
| EUR thousand | 1-9/2023 | 1-9/2022 | 1-12/2022 |
| Finland | 2,529 | 2,503 | 3,522 |
| Rest of Europe | 115,383 | 145,781 | 193,673 |
| North and South America | 217,465 | 210,482 | 294,367 |
| Rest of the world | 535 | 1,458 | 1,736 |
| Total | 335,913 | 360,225 | 493,298 |
QUARTERLY SALES DEVELOPMENT BY BUSINESS AREA
| 2023 | 2022 | ||||||
| EUR thousand | 7-9 | 4-6 | 1-3 | 10-12 | 7-9 | 4-6 | 1-3 |
| Americas | 70,865 | 69,770 | 75,044 | 81,714 | 80,308 | 64,226 | 61,726 |
| Europe | 35,553 | 42,896 | 41,756 | 51,401 | 51,701 | 53,819 | 48,530 |
| Unallocated exchange differences and eliminations | 29 | 7 | -8 | -43 | -72 | -26 | 12 |
| Total | 106,447 | 112,673 | 116,793 | 133,072 | 131,937 | 118,019 | 110,269 |
QUARTERLY DEVELOPMENT
| 2023 | 2022 | ||||||
| EUR thousand | 7-9 | 4-6 | 1-3 | 10-12 | 7-9 | 4-6 | 1-3 |
| Net sales | 106,447 | 112,673 | 116,793 | 133,072 | 131,937 | 118,019 | 110,269 |
| Comparable EBITDA | 5,200 | 2,690 | 2,648 | 4,973 | 5,124 | 1,863 | 3,298 |
| as % of net sales | 4.9 | 2.4 | 2.3 | 3.7 | 3.9 | 1.6 | 3.0 |
| Items affecting comparability | -26 | -4,613 | − | -971 | − | − | − |
| EBITDA | 5,174 | -1,922 | 2,648 | 4,003 | 5,124 | 1,863 | 3,298 |
| as % of net sales | 4.9 | -1.7 | 2.3 | 3.0 | 3.9 | 1.6 | 3.0 |
| Comparable operating profit | 666 | -2,102 | -1,985 | -194 | 202 | -2,903 | -1,268 |
| as % of net sales | 0.6 | -1.9 | -1.7 | -0.1 | 0.2 | -2.5 | -1.2 |
| Items affecting comparability | -26 | -4,621 | -108 | -4,795 | − | − | − |
| Operating profit | 640 | -6,722 | -2,093 | -4,989 | 202 | -2,903 | -1,268 |
| as % of net sales | 0.6 | -6.0 | -1.8 | -3.7 | 0.2 | -2.5 | -1.2 |
| Net financial items | -1,152 | -1,293 | -1,537 | -2,639 | -78 | 723 | -930 |
| Profit before income taxes | -512 | -8,016 | -3,630 | -7,628 | 125 | -2,180 | -2,198 |
| as % of net sales | -0.5 | -7.1 | -3.1 | -5.7 | 0.1 | -1.8 | -2.0 |
RELATED PARTY INFORMATION
The related parties of Suominen include the members of the Board of Directors, President & CEO and the members of the Executive Team as well as their family members and their controlled companies. In addition, shareholders who have a significant influence in Suominen through share ownership are included in related parties. Suominen has no associated companies.
In its transactions with related parties Suominen follows the same commercial terms as in transactions with third parties.
The Annual General Meeting held on April 3, 2023, resolved that 25% of the annual remuneration for the Board of Directors is paid in Suominen Corporation’s shares. The number of shares transferred to the members of the Board of Directors as their remuneration payable in shares for 2023 was 21,949 shares. The shares were transferred on May 10, 2023, and the value of the transferred shares totaled EUR 61,457.
One of Suominen’s share-based plans vested and shares were transferred to the participants of the plan in February. The number of the shares transferred to the members of the Executive Team was 91,443 shares. The value of the shares and the portion settled in cash was EUR 552 thousand.
CHANGES IN PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND RIGHT-OF-USE ASSETS
| 30.9.2023 | 30.9.2022 | 31.12.2022 | ||||
| EUR thousand | Property, plant and equipment | Intangible assets | Property, plant and equipment | Intangible assets | Property, plant and equipment | Intangible assets |
| Carrying amount at the beginning of the period | 116,195 | 9,709 | 115,478 | 13,176 | 115,478 | 13,176 |
| Capital expenditure and increases | 8,728 | 126 | 6,971 | 410 | 9,275 | 438 |
| Disposals and decreases | 0 | − | − | − | − | − |
| Depreciation, amortization and impairment losses | -9,012 | -2,867 | -8,790 | -2,886 | -14,393 | -3,869 |
| Exchange differences and other changes | 688 | 1 | 13,878 | -38 | 5,835 | -36 |
| Carrying amount at the end of the period | 116,599 | 6,969 | 127,537 | 10,662 | 116,195 | 9,709 |
Goodwill is not included in intangible assets.
| 30.9.2023 | 30.9.2022 | 31.12.2022 | |
| EUR thousand | Right-of-use assets | Right-of-use assets | Right-of-use assets |
| Carrying amount at the beginning of the period | 11,902 | 15,741 | 15,741 |
| Increases | 2,221 | 689 | 705 |
| Disposals and decreases | -46 | -13 | -27 |
| Depreciation, amortization and impairment losses | -2,196 | -2,577 | -4,983 |
| Exchange differences and other changes | 17 | 1,049 | 466 |
| Carrying amount at the end of the period | 11,898 | 14,890 | 11,902 |
CHANGES IN INTEREST-BEARING LIABILITIES
| EUR thousand | 1-9/2023 | 1-9/2022 | 1-12/2022 |
| Total interest-bearing liabilities at the beginning of the period | 103,365 | 149,134 | 149,134 |
| Current liabilities at the beginning of the period | 42,855 | 86,823 | 86,823 |
| Repayment of current liabilities, cash flow items | -202,469 | -2,325 | -88,003 |
| Drawdown of current liabilities, cash flow items | 200,000 | − | 40,000 |
| Increases in current liabilities, non-cash flow items | 738 | 242 | 260 |
| Decreases of current liabilities, non-cash flow items | -37 | -13 | -15 |
| Reclassification from non-current liabilities | 2,145 | 2,268 | 2,770 |
| Periodization of debentures to amortized cost, non-cash flow items | − | 928 | 938 |
| Exchange rate difference, non-cash flow item | 13 | 208 | 83 |
| Current liabilities at the end of the period | 43,245 | 88,131 | 42,855 |
| Non-current liabilities at the beginning of the period | 11,215 | 13,167 | 13,167 |
| Increases in non-current liabilities, non-cash flow items | 1,483 | 448 | 445 |
| Decreases of non-current liabilities, non-cash flow items | -10 | − | -12 |
| Reclassification to current liabilities | -2,145 | -2,268 | -2,770 |
| Exchange rate difference, non-cash flow item | 38 | 1,007 | 385 |
| Non-current liabilities at the end of the period | 10,579 | 12,353 | 11,215 |
| Non-current debentures at the beginning of the period | 49,295 | 49,144 | 49,144 |
| Periodization of debentures to amortized cost, non-cash flow items | 115 | 113 | 151 |
| Non-current debentures at the end of the period | 49,410 | 49,257 | 49,295 |
| Total interest-bearing liabilities at the end of the period | 103,234 | 149,741 | 103,365 |
CONTINGENT LIABILITIES
| EUR thousand | 30.9.2023 | 30.9.2022 | 31.12.2022 | |
| Other commitments | ||||
| Leasing commitments | 80 | 110 | 98 | |
| Contractual commitments to acquire property, plant and equipment | 1,316 | 2,743 | 2,641 | |
| Commitments to leases not yet commenced | 38 | 240 | 429 | |
| Guarantees | ||||
| On own behalf | 3,120 | 4,002 | 3,102 | |
| Other own commitments | 19,533 | 18,994 | 16,755 | |
| 22,653 | 22,996 | 19,857 |
NOMINAL AND FAIR VALUES OF DERIVATIVE INSTRUMENTS
| 30.9.2023 | 30.9.2022 | 31.12.2022 | ||||
| EUR thousand | Nominal value | Fair value | Nominal value | Fair value | Nominal value | Fair value |
| Currency forward contracts | ||||||
| Hedge accounting not applied | − | − | 749 | -35 | − | − |
FINANCIAL ASSETS BY CATEGORY
| a. Fair value through profit or loss |
| b. Financial assets at amortized cost |
| c. Financial assets at fair value through other comprehensive income |
| d. Carrying amount |
| e. Fair value |
| Classification | ||||||
| EUR thousand | a. | b. | c. | d. | e. | |
| Equity instruments | − | − | 421 | 421 | 421 | |
| Trade receivables | − | 59,776 | − | 59,776 | 59,776 | |
| Interest and other financial receivables | − | 234 | − | 234 | 234 | |
| Cash and cash equivalents | − | 51,603 | − | 51,603 | 51,603 | |
| Total 30.9.2023 | − | 111,614 | 421 | 112,035 | 112,035 | |
| EUR thousand | a. | b. | c. | d. | e. | |
| Equity instruments | − | − | 421 | 421 | 421 | |
| Trade receivables | − | 66,648 | − | 66,648 | 66,648 | |
| Interest and other financial receivables | − | 334 | − | 334 | 334 | |
| Cash and cash equivalents | − | 49,508 | − | 49,508 | 49,508 | |
| Total 31.12.2022 | − | 116,490 | 421 | 116,911 | 116,911 | |
Principles in estimating fair value of financial assets for 2023 are the same as those used for preparing the consolidated financial statements for 2022.
FINANCIAL LIABILITIES
| 30.9.2023 | 31.12.2022 | |||||||
| EUR thousand | Carrying amount | Fair value | Nominal value | Carrying amount | Fair value | Nominal value | ||
| Non-current financial liabilities | ||||||||
| Debentures | 49,410 | 40,825 | 50,000 | 49,295 | 39,425 | 50,000 | ||
| Lease liabilities | 10,579 | 10,579 | 10,579 | 11,215 | 11,215 | 11,215 | ||
| Total non-current financial liabilities | 59,990 | 51,404 | 60,579 | 60,510 | 50,640 | 61,215 | ||
| Current financial liabilities | ||||||||
| Current loans from financial institutions | 40,000 | 40,000 | 40,000 | 40,000 | 40,000 | 40,000 | ||
| Lease liabilities | 3,245 | 3,245 | 3,245 | 2,855 | 2,855 | 2,855 | ||
| Interest accruals | 439 | 439 | 439 | 734 | 734 | 734 | ||
| Other current liabilities | 380 | 380 | 380 | 353 | 353 | 353 | ||
| Trade payables | 54,508 | 54,508 | 54,508 | 64,565 | 64,565 | 64,565 | ||
| Total current financial liabilities | 98,572 | 98,572 | 98,572 | 108,506 | 108,506 | 108,506 | ||
| Total | 158,562 | 149,977 | 159,152 | 169,016 | 159,146 | 169,721 | ||
Principles in estimating fair value for financial liabilities for 2023 are the same as those used for preparing the consolidated financial statements for 2022.
FAIR VALUE MEASUREMENT HIERARCHY
| EUR thousand | Level 1 | Level 2 | Level 3 |
| Financial assets at fair value | |||
| Equity instruments | − | − | 421 |
| Total | − | − | 421 |
Principles in estimating fair value of financial assets and their hierarchies for 2023 are the same as those used for preparing the consolidated financial statements for 2022.
There were no transfers in the fair value measurement hierarchy levels during the reporting period.
SUOMINEN CORPORATION
Board of Directors
For additional information, please contact:
Tommi Björnman, President & CEO, tel. +358 10 214 3018
Janne Silonsaari, CFO, tel. +358 50 409 9264
Suominen manufactures nonwovens as roll goods for wipes and other applications. Our vision is to be the frontrunner for nonwovens innovation and sustainability. The end products made of Suominen’s nonwovens are present in people’s daily life worldwide. Suominen’s net sales in 2022 were EUR 493.3 million and we around 700 professionals working in Europe and in the Americas. Suominen’s shares are listed on Nasdaq Helsinki. Read more at www.suominen.fi.
Distribution:
Nasdaq Helsinki
Main media
www.suominen.fi
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