Suominen (SUY1V) Q3 2024 earnings summary

Executive summary

• Net sales in Q3 2024 rose 5% year-over-year to EUR 111.6 million, with sales volumes, prices, and margins all increasing; however, operational issues led to unplanned downtime and EUR 3 million in extra costs, reducing profitability.

• Comparable EBITDA for Q3 2024 fell to EUR 3.3 million from EUR 5.2 million, mainly due to operational disruptions; cash flow from operations was negative at EUR -2.6 million.

• For January–September 2024, net sales rose 2% to EUR 343.8 million, with improved comparable EBITDA at EUR 12.8 million, but cash flow from operations declined to EUR -2.6 million.

• Sustainability initiatives advanced, with a Gold Medal from EcoVadis and major investments in sustainable production lines in Spain and the US.

• Immediate corrective actions were taken to stabilize operations, with no ongoing impact on customer deliveries.

Financial highlights

• Q3 2024 net sales: EUR 111.6 million (+5% year-over-year); Q1–Q3 2024: EUR 343.8 million (+2%).

• Q3 comparable EBITDA: EUR 3.3 million (down from EUR 5.2 million); Q1–Q3 comparable EBITDA: EUR 12.8 million (up from EUR 10.5 million).

• Cash flow from operations was negative EUR -2.6 million in Q3 and Q1–Q3, mainly due to higher inventory and lower EBITDA.

• Currency effects reduced net sales by EUR 1.4 million and comparable EBITDA by EUR 0.3 million in Q3.

• Gross profit in Q3 2024 was EUR 5.1 million, down from EUR 6.4 million in Q3 2023; operating profit for Q3 2024 was EUR -1.4 million.

Outlook and guidance

• Comparable EBITDA for 2024 is expected to increase from 2023 (EUR 15.8 million), with no change to full-year guidance.

• No major changes anticipated in market demand or competitive landscape through year-end; Q4 expected to be normal barring new disruptions.