Finnish firm Suominen posts net sales of $253.6 mn in H1 FY24

Suominen, a leading Finnish firm in nonwoven fabrics, has reported net sales of €232.3 million (approximately $253.6 million) in the first half of fiscal 2024 (H1 FY24), in line with the €229.5 million reported in the same period last year. Despite an increase in sales volumes from H1 FY23, lower sales prices offset this growth. Currency fluctuations had a negligible impact on net sales.

Finnish company Suominen reported net sales of €232.3 million in H1 FY24, in line with last year.
Despite lower sales prices, higher volumes and reduced raw material costs boosted comparable EBITDA to €9.5 million.
Q2 FY24 net sales rose 5 per cent to €118.7 million.
Profit improved but remained negative at minus €2.9 million for H1 FY24.

Breaking down the performance by region, the Americas business area contributed €145.7 million to net sales, slightly up from €144.8 million in H1 FY23, while the EMEA business area generated €86.5 million, compared to €84.7 million in the previous year, the company said in a press release.

Suominen’s comparable EBITDA rose significantly to €9.5 million from €5.3 million in H1 FY23, driven by higher sales volumes and lower raw material costs, despite generally lower sales prices. The impact of currencies on EBITDA was minor, at minus €0.1 million. The company’s EBITDA improved to €8.4 million, a sharp rise from €0.7 million in the prior year, although items affecting comparability of EBITDA totalled minus €1 million, compared to minus €4.6 million last year.

Comparable operating profit also saw improvement, reaching €0.3 million compared to a loss of €4.1 million in H1 FY23. Operating profit, though still negative, improved to minus €0.7 million from minus €8.8 million, with items affecting comparability of operating profit amounting to minus €1.0 million versus minus €4.7 million in the previous year. Profit before income taxes was minus €2.6 million, a significant recovery from minus €11.6 million in H1 FY23, and profit for the reporting period was minus €2.9 million, compared to minus €12.1 million last year.

In the second quarter of fiscal 2024 (Q2 FY24), Suominen reported a 5 per cent increase in net sales, which rose to €118.7 million from €112.7 million in the same period last year. The increase in sales volumes was somewhat offset by a decrease in sales prices following lower raw material costs. Currency fluctuations had a positive impact of €0.6 million on net sales.

In the Americas, net sales for Q2 FY24 reached €75.7 million, up from €69.8 million in the previous year, while in the EMEA region, net sales remained relatively stable at €43.0 million, compared to €42.9 million in Q2 FY23.

Comparable EBITDA for Q2 FY24 increased to €5.0 million from €2.7 million in the previous year, primarily due to higher sales volumes and better sales margins. The impact of currencies on comparable EBITDA was minus €0.1 million. However, the reported EBITDA was €3.8 million, up from a loss of €1.9 million in Q2 FY23, influenced by restructuring costs related to the closure of the Mozzate plant in Italy. Items affecting comparability of EBITDA totalled minus €1.2 million, compared to minus €4.6 million in the previous year.

Comparable operating profit for Q2 FY24 was €0.4 million, an improvement from the €2.1 million loss in Q2 FY23. The overall operating profit was minus €0.8 million, better than the minus €6.7 million reported in the same period last year, with items affecting comparability of operating profit amounting to minus €1.2 million, compared to minus €4.6 million last year. Profit before income taxes was minus €1.9 million, improving from minus €8.0 million in Q2 FY23, and the profit for the reporting period stood at minus €1.9 million, compared to minus €8.2 million last year.

“Our ability to innovate and meet market needs is reflected in the share of net sales from new products launched in the last three years, which continued on a very good level and exceeded 37 per cent in the first half of the year. We have been focusing on our commercial and operational excellence, especially on the production efficiency, and we have seen gradual improvements. We are expecting this progress to continue going forward,” said Tommi Bjornman, president and CEO.

Fibre2Fashion News Desk (DP)