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].

Group 1 - Suominen's three largest registered shareholders have nominated members to the Shareholders' Nomination Board, including Charles Héaulmé as the Chair [1][3] - The Shareholders' Nomination Board is responsible for preparing proposals regarding the Board of Directors' composition and remuneration for the Annual General Meeting, with proposals due by February 1 [2] - Suominen's net sales in 2024 were EUR 462.3 million, and the company employs over 700 professionals across Europe and the Americas [2] Group 2 - The members appointed to the Nomination Board include Jyrki Vainionpää from Ahlstrom Capital B.V., Mikael Etola from Etola Group Oy, and Ville Vuori from Oy Etra Invest Ab [3]

Core Insights - Suominen Corporation's half-year financial report indicates a decline in net sales and profitability due to market volatility and increased costs associated with a CEO transition and ongoing investments [1][3][6] Financial Performance - In Q2 2025, net sales decreased by 16% to EUR 99.8 million compared to EUR 118.7 million in Q2 2024 [6][7] - Comparable EBITDA for Q2 2025 was EUR 3.2 million, down from EUR 5.0 million in Q2 2024, reflecting lower sales volumes and additional expenses related to the CEO change [10][11] - Cash flow from operations was negative at EUR -10.1 million in Q2 2025, compared to EUR 2.1 million in Q2 2024 [6][16] - For the first half of 2025, net sales totaled EUR 217.3 million, a 6% decrease from EUR 232.3 million in H1 2024 [9][14] Operational Developments - A cost-saving program was initiated targeting approximately EUR 10 million in savings, resulting in a reduction of around 60 positions globally [4][6] - The ongoing investment in Spain is progressing as planned, while the ramp-up phase for the Bethune investment in the USA continues [5][6] Market Environment - The market faced significant volatility due to the US tariff situation, leading to excess inventories and negatively impacting demand [3][6] - The Americas business area reported net sales of EUR 59.9 million, down from EUR 75.7 million in the previous year, while the EMEA business area saw sales decrease to EUR 40.0 million from EUR 43.0 million [8][9] Leadership Changes - Charles Héaulmé has been appointed as the new President and CEO, effective August 11, 2025, following the departure of Tommi Björnman [6][55]

Financial Report Announcement - Suominen Corporation will publish its Half-Year Financial Report for January 1 – June 30, 2025 on August 7, 2025 at approximately 9:30 a.m. (EEST) [1] - Janne Silonsaari, CFO and Interim President & CEO, will present the results in an audiocast and conference call for analysts, investors, and media on the same day at 11:00 a.m. (EEST) [2] Conference Call Details - Participants can access the teleconference by registering at a specified link, with phone numbers and conference ID provided post-registration [3] Company Overview - Suominen manufactures nonwovens as roll goods for wipes and other applications, aiming to be a frontrunner in nonwovens innovation and sustainability [3] - The company's net sales in 2024 were EUR 462.3 million, employing over 700 professionals in Europe and the Americas [3] - Suominen's shares are listed on Nasdaq Helsinki [3]

Core Points - Suominen Corporation has appointed Mr. Charles Héaulmé as the new President and CEO, effective by August 11, 2025 [1] - Mr. Héaulmé has extensive executive leadership experience and is expected to lead the company towards financial improvement and sustainable growth [2] - Mr. Héaulmé will remain as Chair of the Board until the next Annual General Meeting in 2026, after which he will step down from that position [3] - Mr. Tommi Björnman has mutually agreed to step down as President and CEO, with Mr. Janne Silonsaari serving as interim President and CEO starting June 30, 2025 [4] - The Board expressed gratitude for Mr. Björnman's leadership, highlighting the company's focus on nonwovens innovation and sustainability during his tenure [5] - Mr. Héaulmé expressed his commitment to driving sustainable growth and delivering long-term value to stakeholders [6] Company Overview - Suominen manufactures nonwovens as roll goods for wipes and other applications, aiming to be a leader in nonwovens innovation and sustainability [6] - The company's net sales in 2024 were EUR 462.3 million, and it employs over 700 professionals across Europe and the Americas [6]

Financial Performance - Suominen Corporation reported net sales of EUR 117.5 million for Q1 2025, an increase of 3.4% compared to EUR 113.6 million in Q1 2024 [4][8][66] - Comparable EBITDA decreased to EUR 4.1 million in Q1 2025 from EUR 4.5 million in Q1 2024, primarily due to higher operating expenses [5][11] - The company recorded a profit for the period of EUR -2.2 million in Q1 2025, compared to EUR -1.0 million in Q1 2024 [12][66] Market Environment - The market remained volatile in early 2025, influenced by geopolitical uncertainties and rising raw material prices, which affected global supply chains [3][39] - Despite a decline in consumer confidence, demand for Suominen's products remained stable during the first quarter [3][39] Business Segments - Net sales in the Americas business area were EUR 73.6 million, while the EMEA business area reported net sales of EUR 43.9 million [10] - 27% of net sales in Q1 2025 came from new products launched in the last three years, indicating a strong focus on innovation [4] Sustainability Initiatives - Suominen has committed to sustainability as a core part of its strategy, launching a new sustainability agenda for 2025-2030 focusing on sustainable nonwovens and low-impact manufacturing [6][17] - The company aims to achieve zero manufacturing waste to landfill by 2030 and targets reductions in greenhouse gas emissions in line with the Paris Agreement [19][20] Capital Expenditure - Gross capital expenditure totaled EUR 5.8 million in Q1 2025, with significant investments in sustainable product capabilities in Spain and the USA [15][7] Shareholder Information - As of March 31, 2025, the market capitalization of Suominen was EUR 117.2 million, with a closing share price of EUR 2.03 [23][74]