Suominen Corporation’s Financial Statements Release (unaudited) for January 1 – December 31, 2025: Unsatisfactory performance in a challenging environment

Core Insights - Suominen Corporation reported unsatisfactory financial performance for the year 2025, with significant declines in net sales and profitability due to challenging market conditions and operational disruptions [1][2][7]. Financial Performance - In Q4 2025, net sales decreased by 19.6% to EUR 95.3 million compared to EUR 118.5 million in Q4 2024 [2][11]. - For the full year 2025, net sales were EUR 412.4 million, down 10.8% from EUR 462.3 million in 2024 [2][13]. - Comparable EBITDA for Q4 2025 was EUR 1.9 million, a decline from EUR 4.2 million in Q4 2024 [2][14]. - The full-year comparable EBITDA was EUR 12.6 million, down from EUR 17.0 million in 2024 [2][18]. - The company reported a loss for the period of EUR 12.1 million for 2025, compared to a loss of EUR 5.3 million in 2024 [20][19]. Operational Challenges - Two significant incidents at US facilities constrained supply capabilities, negatively impacting sales and profitability [7]. - The company faced increased import pressures as US customers sought alternative sources due to supply interruptions [7]. - Cash flow from operations improved to EUR 12.2 million in 2025, compared to EUR 3.9 million in 2024 [2][22]. Strategic Initiatives - Suominen executed strategic initiatives, including investments in a new production line in Alicante, Spain, aimed at enhancing sustainable product capabilities [8]. - A cost-saving program was launched targeting approximately EUR 10 million in benefits over 24 months, with steady implementation in the second half of 2025 [9]. - New products accounted for 24% of net sales in Q4 and 27% for the full year, indicating a focus on innovation [8]. Market Outlook - The nonwovens market is expected to continue its growth trajectory in 2026, with Suominen anticipating an improvement in comparable EBITDA compared to 2025 [3][10]. - The wipes segment is benefiting from the expansion of the moist toilet tissue category in the US, despite market dynamics being affected by excess capacity and global trade flow changes [5][6]. Sustainability Efforts - Suominen is committed to sustainability, aiming for over two-thirds of raw materials to be plant-based and focusing on reducing greenhouse gas emissions in line with the Paris Agreement [27][29]. - The company received a Gold Medal from EcoVadis, placing it in the top 2% of companies in its industry for sustainability performance [32].