Core Insights - Suominen Corporation's profitability has been impacted by exceptional events, leading to a reduced outlook for 2025 [1][4][11] Financial Performance - For the period of January 1 - September 30, 2025, net sales decreased by 8% to EUR 317.1 million compared to EUR 343.8 million in 2024 [3][14] - In the third quarter (July-September 2025), net sales decreased by 11% to EUR 99.8 million from EUR 111.6 million in the same period of 2024 [3][12] - Comparable EBITDA for the third quarter increased slightly to EUR 3.4 million from EUR 3.3 million in 2024, while comparable EBITDA for January-September decreased to EUR 10.7 million from EUR 12.8 million in 2024 [3][18] - Cash flow from operations improved significantly to EUR 15.7 million in the third quarter, compared to a negative cash flow of EUR -2.6 million in the same period of 2024 [22] Operational Challenges - Two major incidents at US plants during the third quarter negatively impacted production: an equipment failure and significant flooding, which together affected comparable EBITDA by EUR 2.8 million [8][12] - Sales volumes decreased, but sales margins increased compared to the previous year, indicating a shift in pricing strategy [7][14] Outlook and Strategic Initiatives - The company revised its full-year guidance, now expecting comparable EBITDA to be lower than in 2024, which was EUR 17.0 million [4][11][76] - Suominen is accelerating its cost-saving program, aiming for savings of approximately EUR 10 million over the next 24 months [9] - Sustainability remains a core focus, with 30% of net sales in the third quarter coming from new products launched in the last three years [10][29] Market Environment - The demand for nonwovens is expected to recover in the second half of the year, but the recovery has been slower than anticipated due to supply chain disruptions [6][69] - The company operates primarily in North America and Europe, with the growth in nonwovens demand typically exceeding GDP growth by a couple of percentage points [72]
Suominen Corporation’s Interim Report for January 1 - September 30, 2025: Profitability affected by exceptional events, outlook reduced