Suominen (SUY1V) Q2 2024 earnings summary

Executive summary

• Net sales in Q2 2024 rose 5% year-over-year to EUR 118.7 million; H1 2024 net sales were EUR 232.3 million, flat versus prior year.

• Comparable EBITDA improved to EUR 5.0 million in Q2 2024 (from EUR 2.7 million); H1 2024 comparable EBITDA reached EUR 9.5 million (from EUR 5.3 million), driven by higher sales volumes and better margins.

• Profitability remains challenged: Q2 2024 operating profit was EUR -0.8 million (Q2 2023: EUR -6.7 million); H1 2024: EUR -0.7 million (H1 2023: EUR -8.8 million).

• Cash flow from operations was EUR 2.1 million in Q2 2024 but negative EUR -0.1 million for H1 2024, mainly due to increased inventories, receivables, and working capital.

• Ongoing restructuring program launched in May 2024 targets annualized savings of EUR 1.5 million.

Financial highlights

• Q2 2024 net sales: EUR 118.7 million (Q2 2023: EUR 112.7 million); H1 2024: EUR 232.3 million (H1 2023: EUR 229.5 million).

• Q2 2024 comparable EBITDA: EUR 5.0 million (Q2 2023: EUR 2.7 million); H1 2024: EUR 9.5 million (H1 2023: EUR 5.3 million).

• Q2 2024 operating profit: EUR -0.8 million (Q2 2023: EUR -6.7 million); H1 2024: EUR -0.7 million (H1 2023: EUR -8.8 million).

• Q2 2024 net loss: EUR -1.9 million (Q2 2023: EUR -8.2 million); H1 2024: EUR -2.9 million (H1 2023: EUR -12.1 million).

• Q2 2024 EPS: EUR -0.03 (Q2 2023: EUR -0.14); H1 2024: EUR -0.05 (H1 2023: EUR -0.21).

Outlook and guidance

• Expects 2024 comparable EBITDA to increase from 2023 (EUR 15.8 million in 2023).

• Management expects continued gradual improvement in operational efficiency and margins.

• No major short-term changes anticipated in target markets, though global economic uncertainty persists.