Suominen Corporation’s Interim Report for January 1 – September 30, 2023: EBITDA improved from Q2/2023, outlook unchanged
Suominen Corporation Interim Report on October 27, 2023 at 9:30 a.m. (EEST)
Suominen Corporation’s Interim Report for January 1 – September 30, 2023:
EBITDA improved from Q2/2023, outlook unchanged
*KEY FIGURES*
*7-9/* 7-9/ *1-9/* 1-9/ 1-12/ *2023* 2022 *2023* 2022 2022
Net sales, EUR million *106.4* 131.9 *335.9* 360.2 493.3
Comparable EBITDA, EUR million *5.2* 5.1 *10.5* 10.3 15.3
Comparable EBITDA, % *4.9* 3.9 *3.1* 2.9 3.1
EBITDA, EUR million *5.2* 5.1 *5.9* 10.3 14.3
EBITDA, % *4.9* 3.9 *1.8* 2.9 2.9
Comparable operating profit, EUR million *0.7* 0.2 *-3.4* -4.0 -4.2
Comparable operating profit, % *0.6* 0.2 *-1.0* -1.1 -0.8
Operating profit, EUR million *0.6* 0.2 *-8.2* -4.0 -9.0
Operating profit, % *0.6* 0.2 *-2.4* -1.1 -1.8
Profit for the period, EUR million *0.8* -0.4 *-11.4* -5.1 -13.9
Cash flow from operations, EUR million *8.0* -10.8 *17.6* -1.6 14.0
Cash flow from operations per share, EUR *0.14* -0.19 *0.31* -0.03 0.24
Earnings per share, basic, EUR *0.01* -0.01 *-0.20* -0.09 -0.24
Return on invested capital, rolling 12 months, % *−* − *-6.7* 0.0 -4.2
Gearing, % *−* − *40.1* 39.9 37.4
In this interim report, figures shown in brackets refer to the comparison period of the previous year if not otherwise stated.
*July–September 2023 in brief:*
- Net sales decreased by 19% from the corresponding period of 2022 and were EUR 106.4 million (131.9)
- Comparable EBITDA improved slightly to EUR 5.2 million (5.1)
- Cash flow from operations improved to EUR 8.0 million (-10,8)
*January–September 2023 in brief:*
- Net sales decreased by 7% and were EUR 335.9 million (360.2)
- Comparable EBITDA increased slightly to EUR 10.5 million (10.3)
- Cash flow from operations improved and was EUR 17.6 million (-1.6)
*Outlook for 2023 unchanged*
Suominen expects that its comparable EBITDA (earnings before interest, taxes, depreciation and amortization) in 2023 will increase from 2022. In 2022, Suominen’s comparable EBITDA was EUR 15.3 million.*Tommi Björnman, President & CEO:*
“The third quarter showed signs of improved profitability. Our quarterly comparable EBITDA improved slightly to EUR 5.2 million (5.1) being at the highest level since the fourth quarter of 2021. EBITDA improvement is mainly due to the increased sales margins.
Our net sales were EUR 106.4 million (131.9) in the third quarter. Sales prices decreased following the decline in raw material prices. Sales volumes decreased following the closure of the Mozzate plant in Italy in the second quarter. Currencies impacted the net sales negatively by EUR 5.2 million.
Our commercial and operational excellence improvements are proceeding according to plan and have gradually started to contribute to the result. Going forward, we will continue to systematically execute our improvement action plan.
In the third quarter we were awarded a silver level rating from the EcoVadis sustainability assessment for the second time. We improved our rating by five points and this result places us in the top 5% of companies in the manufacture of other textiles industry rated by EcoVadis.
Our strong ability to innovate and meet market needs is reflected in the share of new products of our net sales, which continued on a good level and exceeded 35% in the third quarter.
Looking ahead, in addition to our internal efficiency measures we will continue leveraging our innovative portfolio to serve our customers and extract the value to improve our profitability. Despite the challenging global economy, we see at the moment positive signs in our business environment in 2024.”
*NET SALES*
*July–September 2023*
In July–September 2023, Suominen’s net sales decreased from the comparison period by 19% to EUR 106.4 million (131.9). Sales prices decreased following the decline in raw material prices. Sales volumes decreased following the closure of the Mozzate plant in Italy in the second quarter. Currencies impacted the net sales negatively by EUR 5.2 million.
Suominen has two business areas, Americas and Europe. Net sales of the Americas business area amounted to EUR 70.9 million (80.3) and net sales of the Europe business area to EUR 35.6 million (51.7).
*January–September 2023*
In January–September 2023, Suominen’s net sales declined from the comparison period by 7% and amounted to EUR 335.9 million (360.2). Sales prices decreased following the decline in raw material prices. Sales volumes decreased following the closure of the Mozzate plant in Italy in the second quarter. Currencies impacted the net sales negatively by EUR 3.3 million.
Net sales of the Americas business area amounted to EUR 215.7 million (206.3) and net sales of the Europe business area to EUR 120.2 million (154.1).
*EBITDA, OPERATING PROFIT AND RESULT*
*July–September 2023 *
Comparable EBITDA (earnings before interest, taxes, depreciation and amortization) was EUR 5.2 million (5.1). EBITDA was EUR 5.2 million (5.1). The items affecting comparability of EBITDA during Q3 totaled EUR -0.0 million.
Comparable operating profit increased from the comparison period and amounted to EUR 0.7 million (0.2). Operating profit increased from the comparison period and amounted to EUR 0.6 million (0.2). The items affecting comparability of operating profit totaled EUR -0.0 million.
Profit before income taxes was EUR -0.5 million (0.1), and profit for the reporting period was EUR 0.8 million (-0.4). Income taxes for the period were EUR +1.3 million (-0.5).
*January–September 2023 *
Comparable EBITDA (earnings before interest, taxes, depreciation and amortization) was EUR 10.5 million (10.3). Lower sales volumes were offset by higher sales margins. Currency impact on EBITDA was EUR +0.7 million.
EBITDA declined to EUR 5.9 million (10.3) due to non-recurring items arising from the closure of production at the Mozzate plant in Italy. The items affecting comparability of EBITDA totaled EUR -4.6 million and consisted mainly of dismissal and restoration expenses.
Comparable operating profit improved and was EUR -3.4 million (-4.0). Operating profit decreased and was EUR -8.2 million (-4.0). The items affecting comparability of operating profit totaled EUR -4.8 million.
Profit before income taxes was EUR -12.2 million (-4.3), and profit for the reporting period was
EUR -11.4 million (-5.1).
Income taxes for the period were EUR +0.8 million (-0.8).
*FINANCING*
The Group’s net interest-bearing liabilities at nominal value amounted to EUR 52.2 million (65.8) at the end of the review period. The gearing ratio was 40.1% (39.9%) and the equity ratio 40.9% (39.8%).
In January–September, net financial expenses were EUR -4.0 million (-0.3), or -1.2% (-0.1%) of net sales. Fluctuations in exchange rates decreased the net financial expenses by EUR 0.0 million (in 2022, decreased by EUR 4.4 million).
Cash flow from operations in July–September was EUR 8.0 million (-10.8) and in January–September EUR 17.6 million (-1.6), representing a cash flow per share of EUR 0.31 (-0.03). The improvement in the cash flow from operations for January–September was driven by improvement in net working capital, especially by the decrease of working capital tied to the inventory.
In the third quarter the change in net working capital was EUR +4.5 million (-13.9). The change in net working capital in January–September was EUR +16.6 million (-7.3).
*CAPITAL EXPENDITURE *
In January–September, the gross capital expenditure totaled EUR 8.9 million (7.4) and the largest item was related to the growth investment initiative at the Nakkila plant in Finland. Other investments were mainly for maintenance.
Depreciation, amortization and impairment losses for the review period amounted to EUR 14.1 million (14.3).
*PROGRESS IN SUSTAINABILITY*
During the third quarter of 2023, we were awarded a silver level rating from the EcoVadis sustainability assessment. This was the second time that we completed the EcoVadis assessment, and we improved our rating by five points. This result places us in the top 5% of companies in the manufacture of other textiles industry rated by EcoVadis.
By the end of September there have been 5 LTAs at Suominen sites. We will continue our systematic safety work and preventive actions. We will also initiate a special safety awareness campaign to remind the importance of attitude, behavior and operating model in everyday safety. The campaign is set to start in Q4.
We systematically measure our employee engagement and collect feedback by conducting an engagement survey, Suominen Vibe, annually. This year's Suominen Vibe survey started in October.
We are constantly improving our production efficiency and the efficient utilization of natural resources. In the third quarter we continued our actions towards our targets to reduce energy consumption, greenhouse gas emissions, water consumption and waste to landfill by 20% per ton of product by 2025 compared to the base year of 2019.
Sustainability is at the core of our R&D and we are continuously developing new innovative solutions into our already comprehensive portfolio of sustainable nonwovens. Our target is to increase the sales of sustainable products by 50% by 2025 compared to 2019, and to have at least 10 sustainable product launches per year.
Suominen reports progress in its sustainability KPIs annually.
As part of our Annual Report 2022 published in March 2023, we reported on the progress of our sustainability performance. Our sustainability reporting in 2022 was done in accordance with the GRI Standards of the Global Reporting Initiative and it was assured by an external partner.
*INFORMATION ON SHARES AND SHARE CAPITAL*
*Share capital*
The number of Suominen’s registered shares was 58,259,219 shares on September 30, 2023, equaling to a share capital of EUR 11,860,056.00.
*Share trading and price *
The number of Suominen Corporation shares traded on Nasdaq Helsinki from January 1 to September 30, 2023, was 2,312,906 shares, accounting for 4.0% of the average number of shares (excluding treasury shares). The highest price was EUR 3.48, the lowest EUR 2.51, and the volume-weighted average price EUR 2.87. The closing price at the end of review period was EUR 2.85. The market capitalization (excluding treasury shares) was EUR 164.4 million on September 30, 2023.
*Treasury shares*
On September 30, 2023, Suominen Corporation held 566,760 treasury shares.
As a share-based payment plan vested, in total 189,783 shares were transferred to the participants of the plan in February.
In accordance with the resolution by the Annual General Meeting, in total 21,949 shares were transferred in May to the members of the Board of Directors as their remuneration payable in shares.
*The portion of the remuneration of the members of the Board of Directors paid in shares *
The Annual General Meeting held on April 3, 2023, decided that 75% of the annual remuneration of the members of the Board of Directors is paid in cash and 25% in Suominen Corporation’s shares.
The number of shares forming the remuneration portion payable in shares was determined based on the share value in the stock exchange trading maintained by Nasdaq Helsinki Ltd, calculated as the trade volume-weighted average quotation of the share during the two-week period immediately following the date on which the Interim Report of January‒March 2023 of the company was published. The shares were given out of the treasury shares held by the company by the decision of the Board of Directors on May 10, 2023.
*Share-based incentive plans for the management and key employees*
The Group management and key employees participate in the company’s share-based long-term incentive plans. The plans are described in more detail in the Financial Statements and in the Remuneration Report, available on the company’s website www.suominen.fi.
Company's Performance Share Plan currently includes three 3-year performance periods, calendar years 2021–2023, 2022–2024 and 2023–2025. The aim of the Performance Share Plan is to combine the objectives of the shareholders and the persons participating in the plan in order to increase the value of the company in long-term, to build loyalty to the company and to offer them competitive reward plans based on earning and accumulating the company’s shares.
Performance Share Plan: Ongoing performance periods
Performance Period 2021–2023 2022–2024 2023–2025
Incentive based on Total Shareholder Return (TSR) Total Shareholder Return (TSR) Total Shareholder Return (TSR)
Potential reward payment Will be paid partly in Suominen shares and partly in cash in spring 2024 Will be paid partly in Suominen shares and partly in cash in spring 2025 Will be paid partly in Suominen shares and partly in cash in spring 2026
Participants 15 people 21 people 23 people
Maximum number of shares 232,000 222,000 687,000The President & CEO of the company must hold 50% of the net number of shares given on the basis of the plan, as long as his or her shareholding in total corresponds to the value of his or her annual gross salary. A member of the Executive Team must hold 50% of the net number of shares given on the basis of the plan, as long as his or her shareholding in total corresponds to the value of half of his or her annual gross salary. Such a number of shares must be held as long as the participant’s employment or service in a group company continues.
The President & CEO’s share-based incentive plan
The Board of Directors of Suominen Corporation resolved on May 19 to establish a new share-based incentive plan for the company’s President & CEO. The aim of the plan is to align the objectives of the shareholders and the President & CEO in order to increase the value of Suominen in the long-term, to retain the President & CEO at the company, and to offer him a competitive reward plan that is based on acquiring, receiving and accumulating the company's shares.
Under the plan the President & CEO is expected to own or acquire up to 30,000 shares of Suominen Corporation at a price formed in public trading on Nasdaq Helsinki. Suominen will match the share investment by way of the President & CEO receiving, without consideration, up to 60,000 matching shares (gross, including also the proportion to be paid in cash).
The plan includes three vesting periods, June 1, 2023–June 1, 2024, June 1, 2023–June 1, 2025, and June 1, 2023–June 1, 2026. The potential reward will be paid partly in shares and partly in cash in three equal installments after each vesting period, provided that the President & CEO’s service in the company is in force at the time of the reward payment. The cash proportion is intended to cover taxes and tax-related costs arising from the rewards to the President & CEO.
*ANNUAL GENERAL MEETING *
The Annual General Meeting (AGM) of Suominen Corporation was held on April 3, 2023.
The AGM adopted the Financial Statements and the Consolidated Financial Statements for the financial year 2022 and discharged the members of the Board of Directors and the President & CEO from liability for the financial year 2022. The AGM approved the Remuneration Report for the governing bodies. The AGM also approved the amendment of the company’s Articles of Association in such a way that it enables the organization of General Meetings in the future also entirely without a meeting venue as a remote meeting.
The AGM decided, in accordance with the proposal by the Board of Directors, that a dividend of EUR 0.10 per share will be paid.
The AGM confirmed the remuneration of the Board of Directors. The Chair will be paid an annual fee of EUR 70,000 and the Deputy Chair and other Board members an annual fee of EUR 33,000. Chair of the Audit Committee will be paid an additional fee of EUR 10,000. Further, the members of the Board will receive a fee for each Board and Committee meeting as follows: EUR 500 for each meeting held in the home country of the respective member, EUR 1,000 for each meeting held elsewhere than in the home country of the respective member and EUR 500 for each meeting held as a telephone conference.
75% of the remuneration is paid in cash and 25% in Suominen Corporation’s shares. Compensation for expenses is paid in accordance with the company's valid travel policy.
The AGM decided that the number of Board members remains unchanged at six (6). Mr. Andreas Ahlström, Mr. Aaron Barsness, Mr. Björn Borgman, Mr. Jaakko Eskola, Ms. Nina Linander were re-elected as members of the Board. Ms. Laura Remes was elected as a new member of the Board.
Mr. Jaakko Eskola was re-elected as the Chair of the Board of Directors.
Ernst & Young Oy, Authorised Public Accountant firm, was re-elected as the auditor of the company for the next term of office in accordance with the Articles of Association. Ernst & Young Oy appointed Mr. Toni Halonen, Authorised Public Accountant, as the principally responsible auditor of the company.
The AGM authorized the Board of Directors to decide on the repurchase of the company’s own shares and to resolve on the issuance of shares and granting of options and the issuance of special rights entitling to shares. The terms and conditions of the authorization are explained later in this half-year report.
Suominen published a stock exchange release on April 3, 2023, concerning the resolutions of the Annual General Meeting and the organizing meeting of the Board of Directors. The stock exchange release and an introduction of the new Board member can be viewed on Suominen’s website at www.suominen.fi.
In compliance with the resolution of the Annual General Meeting, on April 14, 2023, Suominen paid out dividends in total of EUR 5.8 million for 2022, corresponding to EUR 0.10 per share.
*Organizing meeting and permanent committees of the Board of Directors *
In its organizing meeting held after the AGM, the Board of Directors elected Andreas Ahlström as Deputy Chair of the Board.
The Board of Directors elected from among its members the members for the Audit Committee and Personnel and Remuneration Committee. Nina Linander was re-elected as the Chair of the Audit Committee and Andreas Ahlström was re-elected as member. Laura Remes was elected as a new member. Jaakko Eskola was re-elected as the Chair of the Personnel and Remuneration Committee and Björn Borgman and Aaron Barsness were re-elected as members.
*Authorizations of the Board of Directors *
The AGM authorized the Board of Directors to decide on the repurchase a maximum of 1,000,000 of the company’s own shares. The company’s own shares shall be repurchased otherwise than in proportion to the holdings of the shareholders by using the non-restricted equity through trading on regulated market organized by Nasdaq Helsinki Ltd at the market price prevailing at the time of acquisition. The shares shall be repurchased and paid in accordance with the rules of Nasdaq Helsinki Ltd and Euroclear Finland Ltd. The shares shall be repurchased to be used in company’s share-based incentive programs, in order to disburse the remuneration of the members of the Board of Directors, for use as consideration in acquisitions related to the company’s business, or to be held by the company, to be conveyed by other means or to be cancelled. The Board of Directors shall decide on other terms and conditions related to the repurchase of the company’s own shares. The repurchase authorization shall be valid until June 30, 2024, and it revokes all earlier authorizations to repurchase company’s own shares.
The AGM authorized the Board of Directors to decide on issuing new shares and/or conveying the company’s own shares held by the company and/or granting options and other special rights referred to in Chapter 10, Section 1 of the Finnish Companies Act. New shares may be issued, and the company’s own shares may be conveyed to the company’s shareholders in proportion to their current shareholdings in the company; or by waiving the shareholder’s pre-emption right, through a directed share issue if the company has a weighty financial reason to do so, such as, for example, using the shares as consideration in possible acquisitions or other arrangements related to the company’s business, as financing for investments, using shares as part of the company’s incentive program or using the shares for disbursing the portion of the Board members’ remuneration that is to be paid in shares. The new shares may also be issued without payment to the company itself. New shares may be issued and/or company’s own shares held by the company, or its group company may be conveyed at the maximum amount of 5,000,000 shares in aggregate.
The Board of Directors may grant options and other special rights referred to in Chapter 10, Section 1 of the Finnish Companies Act, which carry the right to receive against payment new shares or own shares held by the company. The right may also be granted to the company’s creditor in such a manner that the right is granted on condition that the creditor’s receivable is used to set off the subscription price (“Convertible Bond”). However, options and other special rights referred to in Chapter 10, Section 1 of the Companies Act cannot be granted as part of the company’s remuneration plan.
The maximum number of new shares that may be subscribed and own shares held by the company that may be conveyed by virtue of the options and other special rights granted by the company is 5,000,000 shares in total which number is included in the maximum number stated above.
The authorizations shall revoke all earlier authorizations regarding share issue and issuance of special rights entitling to shares. The Board of Directors shall decide on all other terms and conditions related to the authorizations. The authorizations shall be valid until June 30, 2024.
*NOTIFICATIONS UNDER CHAPTER 9, SECTION 5 OF THE SECURITIES MARKET ACT*
During the review period Suominen received no notifications under Chapter 9, Section 5 of the Securities Market Act.*CHANGES IN THE EXECUTIVE TEAM *
Suominen announced on August 22, 2023, that Ms. Lynda Kelly, SVP, Americas & Business Development leaves Suominen for medical reasons. Mr. Markku Koivisto was appointed as interim SVP, Americas in addition to his current role as SVP, Europe, and R&D. The change was effective immediately.*NOMINATION BOARD *
Suominen’s three largest registered shareholders Ahlstrom Capital B.V., Etola Group Oy and Oy Etra Invest Ab have nominated the following members to the Shareholders’ Nomination Board:
· Lasse Heinonen, President & CEO of A. Ahlström Oy, as a member appointed by Ahlstrom Capital B.V.
· Mikael Etola, CEO, Etola-Yhtiöt, as a member appointed by Etola Group Oy and Oy Etra Invest Ab
Jaakko Eskola, Chair of Suominen’s Board of Directors, serves as the third member of the Nomination Board. The shareholders entitled to appoint members to the Nomination Board were determined on the basis of the registered holdings in the company’s shareholders' register on September 1, 2023.
In its organizing meeting on September 4, 2023, the Nomination Board elected Lasse Heinonen as the Chair of the Nomination Board. The Nomination Board decided to invite Peter Seligson, Chair of the Board of Directors of A. Ahlström Oy, to attend the Nomination Board’s meetings as an advisor.
*SHORT TERM RISKS AND UNCERTAINTIES *
Regarding the war in Ukraine, the direct impact to Suominen’s business is minor as we have no customers nor suppliers in Russia, Belarus or Ukraine. Suominen as a company is mostly affected by the indirect economic impacts of the war. We follow the crisis in the Middle East and monitor possible impact to our business.
Suominen’s other risks and uncertainties include but are not limited to: risks related to manufacturing, competition, raw material prices and availability and customer specific volumes and credits, changes in legislation, political environment or economic conditions and investments, and financial risks.
A more detailed description of risks is available in Suominen’s Annual Report 2022 at suominen.fi/investors.
*BUSINESS ENVIRONMENT*
Suominen’s nonwovens are, for the most part, used in daily consumer goods, such as wipes as well as in hygiene and medical products. In these target markets of Suominen, the general economic situation determines the development of consumer demand, even though the demand for consumer goods is not very cyclical in nature. North America and Europe are the largest market areas for Suominen. In addition, the company operates in the South American markets. The growth in the demand for nonwovens has typically exceeded the growth of gross domestic product by a couple of percentage points.
We see some positive signs in nonwovens market, but the overall global economic uncertainty and fierce competition makes the longer-term visibility challenging. The raw material prices continued to decline in Q3/2023 from the previous quarter (Q2/2023) and in the short term we are not expecting major changes in the raw material prices, but longer-term visibility is unclear. It remains to be seen how the current economic climate impacts the end consumer demand and consumer preferences regarding wipes. Historically, the wipes market has been rather steady despite the general economic situation.
*OUTLOOK FOR 2023*
Suominen expects that its comparable EBITDA (earnings before interest, taxes, depreciation and amortization) in 2023 will increase from 2022. In 2022, Suominen’s comparable EBITDA was EUR 15.3 million.
*CORPORATE GOVERNANCE AND REMUNERATION REPORT*
Suominen has prepared a separate Corporate Governance Statement and a Remuneration Report for 2022, which comply with the recommendations of the Finnish Corporate Governance Code for listed companies. The statements also cover other central areas of corporate governance. The statements have been published on Suominen's website, separately from the Report of the Board of Directors, at www.suominen.fi.
*AUDIOCAST AND CONFERENCE CALL*
Tommi Björnman, President & CEO, and Janne Silonsaari, CFO, will present the result in English in an audiocast and a conference call for analyst, investors, and media on the same day at 11:00 a.m. (EEST). The audiocast can be followed at https://suominen.videosync.fi/2023-q3/register. The recording of the audiocast and the presentation material will be available after the event at www.suominen.fi.
Conference call participants can access the teleconference by registering at http://palvelu.flik.fi/teleconference/?id=10010547. The phone numbers and a conference ID to access the conference will be provided after the registration.
The event cannot be attended on the spot.*NEXT FINANCIAL REPORT *
Suominen Corporation will publish its Financial Statements Release 2024 on February 6, 2024 approximately at 9:30 a.m. (EET).
*EVENTS AFTER THE REPORTING PERIOD*
*Thomas Olsen appointed SVP, Americas business area*
Thomas Olsen, MBA, has been appointed Senior Vice President, Americas business area. He will be a member of Suominen's Executive Team and report to President and CEO Tommi Björnman. Olsen will start in his new position on November 1, 2023.
*SUOMINEN GROUP JANUARY 1 – SEPTEMBER 30, 2023*
The figures in this interim report are mainly presented in EUR thousands. As a result of rounding differences, the figures presented in the tables do not necessarily add up to total.
This interim report has not been audited.
This interim report has been prepared in accordance with the principles defined in IAS 34 Interim Financial Reporting. The principles for preparing the interim report are the same as those used for preparing the consolidated financial statements for 2022, with the exception of the effect of the new accounting standards and interpretations which have been applied from 1.1.2023.
The new or amended standards or interpretations applicable from 1.1.2023 are not material for Suominen Group.
*CONSOLIDATED STATEMENT OF FINANCIAL POSITION*
EUR thousand *30.9.2023* 30.9.2022 31.12.2022
*Assets*
*Non-current assets*
Goodwill *15,496* 15,496 15,496
Intangible assets *6,969* 10,662 9,709
Property, plant and equipment *116,599* 127,537 116,195
Right-of-use assets *11,898* 14,890 11,902
Equity instruments *421* 421 421
Other non-current receivables *69* 88 93
Deferred tax assets *2,043* 1,871 693
*Total non-current assets * *153,495* 170,964 154,510
*Current assets*
Inventories *42,472* 69,265 63,261
Trade receivables *59,776* 75,920 66,648
Other current receivables *10,132* 10,569 8,857
Assets for current tax *1,511* 3,700 662
Cash and cash equivalents *51,603* 84,664 49,508
*Total current assets* *165,494* 244,118 188,935
*Total assets* *318,989* 415,082 343,445
*Equity and liabilities*
*Equity *
Share capital *11,860* 11,860 11,860
Share premium account *24,681* 24,681 24,681
Reserve for invested unrestricted equity *75,692* 75,692 75,692
Fair value and other reserves *316* 265 265
Exchange differences *4,236* 13,220 2,678
Retained earnings *13,498* 39,469 30,740
*Total equity attributable to owners of the parent* *130,283* 165,188 145,916
*Liabilities*
*Non-current liabilities*
Deferred tax liabilities *10,164* 13,376 11,730
Liabilities from defined benefit plans *185* 595 424
Non-current provisions *4,457* 1,956 1,950
Non-current lease liabilities *10,579* 12,353 11,215
Debentures *49,410* 49,257 49,295
Total non-current liabilities *74,795* 77,537 74,614
*Current liabilities*
Current lease liabilities *3,245* 3,141 2,855
Other current interest-bearing liabilities *40,000* − 40,000
Debentures − 84,990 −
Liabilities for current tax *557* 3,829 289
Trade payables and other current liabilities *70,109* 80,398 79,771
Total current liabilities *113,911* 172,358 122,915
*Total liabilities* *188,706* 249,895 197,529
*Total equity and liabilities* *318,989* 415,082 343,445
*CONSOLIDATED STATEMENT OF PROFIT OR LOSS*EUR thousand *7-9/*
*2023* 7-9/
2022 *1-9/*
*2023* 1-9/
2022 1-12/
2022
*Net sales* *106,447* 131,937 *335,913* 360,225 493,298
Cost of goods sold *-100,087* -126,723 *-321,631* -343,446 -474,718
*Gross profit* *6,360* 5,214 *14,282* 16,780 18,579
Other operating income *2,537* 3,007 *4,276* 4,103 5,739
Sales, marketing and administration expenses *-6,879* -6,754 *-21,118* -21,551 -28,932
Research and development expenses *-1,010* -925 *-2,996* -2,571 -3,503
Other operating expenses *-367* -340 *-2,619* -729 -841
*Operating profit* *640* 202 *-8,175* -3,969 -8,958
Net financial expenses *-1,152* -78 *-3,982* -284 -2,923
*Profit before income taxes* *-512* 125 *-12,158* -4,253 -11,881
Income taxes *1,288* -524 *798* -801 -1,983
*Profit for the period * *776* -398 *-11,359* -5,054 -13,863
*Earnings per share, EUR*
Basic *0.01* -0.01 *-0.20* -0.09 -0.24
Diluted *0.01* -0.01 *-0.20* -0.09 -0.24
*CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME*EUR thousand *7-9/*
*2023* 7-9/
2022 *1-9/*
*2023* 1-9/
2022 1-12/
2022
*Profit for the period * *776* -398 *-11,359* -5,054 -13,863
*Other comprehensive income:*
*Other comprehensive income that will be subsequently reclassified to profit or loss*
Exchange differences *2,589* 8,117 *1,640* 20,439 8,873
Income taxes related to other comprehensive income *-307* -725 *-83* -1,642 -618
*Total* *2,282* 7,392 *1,557* 18,797 8,255
*Other comprehensive income that will not be subsequently reclassified to profit or loss*
Remeasurements of defined benefit plans *-17* − *-17* − 137
Income taxes related to other comprehensive income *−* − *−* − -125
*Total* *-17* − *-17* − 12
*Total other comprehensive income * *2,264* 7,392 *1,540* 18,797 8,267
*Total comprehensive income for the period* *3,041* 6,994 *-9,819* 13,743 -5,596
*CONSOLIDATED STATEMENT OF CHANGES IN EQUITY*
EUR thousand Share capital Share premium account Reserve for invested unrestricted equity Exchange differences
*Equity 1.1.2023* *11,860* *24,681* *75,692* *2,678*
Profit for the period − − − −
Other comprehensive income − − − 1,557
*Total comprehensive income * *−* *−* *−* *1,557*
Distribution of dividend − − − −
Share-based payments − − − −
Conveyance of treasury shares − − − −
Transfers − − − −
*Equity 30.9.2023* *11,860* *24,681* *75,692* *4,236*
EUR thousand Fair value and other reserves Retained earnings Total equity attributable to owners of the parent
*Equity 1.1.2023* *265* *30,740* *145,916*
Profit for the period − -11,359 -11,359
Other comprehensive income − -17 1,540
*Total comprehensive income * *−* *-11,376* *-9,819*
Distribution of dividend − -5,767 -5,767
Share-based payments − -100 -100
Conveyance of treasury shares − 52 52
Transfers 51 -51 −
*Equity 30.9.2023* *316* *13,498* *130,283*
EUR thousand Share capital Share premium account Reserve for invested unrestricted equity Exchange differences
*Equity 1.1.2022* *11,860* *24,681* *75,692* *-5,577*
Profit for the period − − − −
Other comprehensive income − − − 18,797
*Total comprehensive income * *−* *−* *−* *18,797*
Distribution of dividend − − − −
Share-based payments − − − −
Acquisition of treasury shares − − − −
Conveyance of treasury shares − − − −
Transfers − − − −
*Equity 30.9.2022* *11,860* *24,681* *75,692* *13,220*
EUR thousand Fair value and other reserves Retained earnings Total equity attributable to owners of the parent
*Equity 1.1.2022* *-7* *56,549* *163,199*
Profit for the period − -5,054 -5,054
Other comprehensive income − − 18,797
*Total comprehensive income * *−* *-5,054* *13,743*
Distribution of dividend − -11,492 -11,492
Share-based payments − 35 35
Acquisition of treasury shares − -352 -352
Conveyance of treasury shares − 55 55
Transfers 272 -272 −
*Equity 30.9.2022* *265* *39,469* *165,188*
EUR thousand Share capital Share premium account Reserve for invested unrestricted equity Exchange differences
*Equity 1.1.2022* *11,860* *24,681* *75,692* *-5,577*
Profit for the period − − − −
Other comprehensive income − − − 8,255
*Total comprehensive income * *−* *−* *−* *8,255*
Distribution of dividend − − − −
Share-based payments − − − −
Acquisition of treasury shares − − − −
Conveyance of treasury shares − − − −
Transfers − − − −
*Equity 31.12.2022* *11,860* *24,681* *75,692* *2,678*
EUR thousand Fair value and other reserves Retained earnings Total equity attributable to owners of the parent
*Equity 1.1.2022* *-7* *56,549* *163,199*
Profit for the period − -13,863 -13,863
Other comprehensive income − 12 8,267
*Total comprehensive income * *−* *-13,851* *-5,596*
Distribution of dividend − -11,492 -11,492
Share-based payments − 106 106
Acquisition of treasury shares − -352 -352
Conveyance of treasury shares − 52 52
Transfers 272 -272 −
*Equity 31.12.2022* *265* *30,740* *145,916*
*CONSOLIDATED STATEMENT OF CASH FLOWS*EUR thousand *1-9/2023* 1-9/2022 1-12/2022
*Cash flow from operations*
Profit for the period *-11,359* -5,054 -13,863
Total adjustments to profit for the period *19,084* 15,539 28,037
Cash flow before changes in net working capital *7,725* 10,486 14,174
Change in net working capital *16,583* -7,275 7,753
Financial items *-3,837* -2,009 -4,745
Income taxes *-2,824* -2,755 -3,156
*Cash flow from operations* *17,647* -1,553 14,027
*Cash flow from investments*
Investments in property, plant and equipment and intangible assets *-8,060* -7,415 -9,764
Sales proceeds from property, plant and equipment and intangible assets *33* 30
*Cash flow from investments* *-8,027* -7,415 -9,734
*Cash flow from financing*
Drawdown of current interest-bearing liabilities *200,000* − 40,000
Repayment of non-current interest-bearing liabilities − − -85,000
Repayment of current interest-bearing liabilities *-202,469* -2,325 -3,003
Acquisition of treasury shares − -379 -379
Dividends paid *-5,767* -11,492 -11,492
*Cash flow from financing* *-8,236* -14,197 -59,875
*Change in cash and cash equivalents* *1,384* -23,165 -55,582
Cash and cash equivalents at the beginning of the period *49,508* 101,357 101,357
Effect of changes in exchange rates *712* 6,472 3,732
Change in cash and cash equivalents *1,384* -23,165 -55,582
*Cash and cash equivalents at the end of the period* *51,603* 84,664 49,508
*KEY RATIOS*
*7-9/*
*2023* 7-9/
2022 *1-9/*
*2023* 1-9/
2022 1-12/
2022
Change in net sales, % * *-19.3* 33.7 *-6.7* 9.9 11.3
Gross profit, as percentage of net sales, % *6.0* 4.0 *4.3* 4.7 3.8
Comparable EBITDA, as percentage of net sales, % *4.9* 3.9 *3.1* 2.9 3.1
EBITDA, as percentage of net sales, % *4.9* 3.9 *1.8* 2.9 2.9
Comparable operating profit, as percentage of net sales, % *0.6* 0.2 *-1.0* -1.1 -0.8
Operating profit, as percentage of net sales, % *0.6* 0.2 *-2.4* -1.1 -1.8
Net financial items, as percentage of net sales, % *-1.1* -0.1 *-1.2* -0.1 -0.6
Profit before income taxes, as percentage of net sales, % *-0.5* 0.1 *-3.6* -1.2 -2.4
Profit for the period, as percentage of net sales, % *0.7* -0.3 *-3.4* -1.4 -2.8
Gross capital expenditure, EUR thousand *5,170* 3,390 *8,854* 7,380 9,713
Depreciation, amortization and impairment losses, EUR thousand *4,534* 4,922 *14,075* 14,253 23,245
Return on equity, rolling 12 months, % *−* − *-14.2* -1.6 -8.8
Return on invested capital, rolling 12 months, % *−* − *-6.7* 0.0 -4.2
Equity ratio, % *−* − *40.9* 39.8 42.5
Gearing, % *−* − *40.1* 39.9 37.4
Average number of personnel (FTE - full time equivalent) *−* − *690* 706 707
Earnings per share, EUR, basic *0.01* -0.01 *-0.20* -0.09 -0.24
Earnings per share, EUR, diluted *0.01* -0.01 *-0.20* -0.09 -0.24
Cash flow from operations per share, EUR *0.14* -0.19 *0.31* -0.03 0.24
Equity per share, EUR *−* *−* *2.26* 2.87 2.54
Number of shares, end of period, excluding treasury shares *−* *−* *57,692,459* 57,480,727 57,480,727
Share price, end of period, EUR *−* − *2.85* 2.64 3.00
Share price, period low, EUR *−* − *2.51* 2.46 2.36
Share price, period high, EUR *−* − *3.48* 5.27 5.27
Volume weighted average price during the period, EUR *−* − *2.87* 3.64 3.57
Market capitalization, EUR million *−* − *164.4* 151.7 172.4
Number of traded shares during the period *−* − *2,312,906* 9,800,783 10,902,032
Number of traded shares during the period, % of average number of shares *−* − *4.0* 17.1 19.0
* Compared with the corresponding period in the previous year. *30.9.2023* 30.9.2022 31.12.2022
*Interest-bearing net debt, EUR thousands*
Non-current interest-bearing liabilities, nominal value *60,579* 62,353 61,215
Current interest-bearing liabilities, nominal value *43,245* 88,141 42,855
Interest-bearing receivables and cash and cash equivalents * * *-51,603* -84,664 -49,508
Interest-bearing net debt * * *52,221* 65,830 54,562
*CALCULATION OF KEY RATIOS AND ALTERNATIVE PERFORMANCE MEASURES *
Key ratios per share are either IFRS key ratios (earnings per share) or required by Ordinance of the Ministry of Finance in Finland or alternative performance measures (cash flow from operations per share).
Some of the other key ratios Suominen publishes are alternative performance measures. An alternative performance measure is a key ratio which has not been defined in IFRS standards. Suominen believes that the use of alternative performance measures provides useful information for example to investors regarding the Group's financial and operating performance and makes it easier to make comparisons between the reporting periods.
The link between the components of the key ratios per share and the consolidated financial statements is presented in the consolidated financial statements of 2022. The link between the components of the alternative performance measures and the consolidated financial statements is presented in Suominen’s Annual Report for 2022.
*Calculation of key ratios per share *
*Earnings per share*
Basic earnings per share (EPS)
=
Profit for the period
Share-issue adjusted average number of shares excluding treasury shares
Diluted earnings per share (EPS)
Profit for the period
= Average diluted share-issue adjusted number of shares excluding treasury shares
EUR thousand *30.9.2023* *30.9.2022* *31.12.2022*
Profit for the period -11,359 -5,054 -13,863
Average share-issue adjusted number of shares 57,643,772 57,425,760 57,439,615
Average diluted share-issue adjusted number of shares excluding treasury shares 57,715,794 57,510,358 57,533,196
*Earnings per share*
*EUR*
Basic -0.20 -0.09 -0.24
Diluted -0.20 -0.09 -0.24
*Cash flow from operations per share*
Cash flow from operations per share
Cash flow from operations
= Share-issue adjusted number of shares excluding treasury shares, end of reporting period
*30.9.2023* *30.9.2022* *31.12.2022*
Cash flow from operations, EUR thousand 17,647 -1,553 14,027
Share-issue adjusted number of shares excluding treasury shares, end of reporting period 57,692,459 57,480,727 57,480,727
Cash flow from operations per share, EUR 0.31 -0.03 0.24
*Equity per share*
Equity per share
Total equity
= Share-issue adjusted number of shares excluding treasury shares, end of reporting period
*30.9.2023* *30.9.2022* *31.12.2022*
Total equity attributable to owners of the parent, EUR thousand 130,283 165,188 145,916
Share-issue adjusted number of shares excluding treasury shares, end of reporting period 57,692,459 57,480,727 57,480,727
Equity per share, EUR 2.26 2.87 2.54
*Market capitalization*
Market capitalization = Number of shares at the end of reporting period excluding treasury shares x share price at the end of period
*30.9.2023* *30.9.2022* *31.12.2022*
Number of shares at the end of reporting period excluding treasury shares 57,692,459 57,480,727 57,480,727
Share price at end of the period, EUR 2.85 2.64 3.00
Market capitalization, EUR million 164.4 151.7 172.4
*Share turnover*
Share turnover = The proportion of number of shares traded during the period to weighted average number of shares excluding treasury shares
*30.9.2023* *30.9.2022* *31.12.2022*
Number of shares traded during the period 2,312,906 9,800,783 10,902,032
Average number of shares excluding treasury shares 57,643,772 57,425,760 57,439,615
Share turnover, % 4.0 17.1 19.0
*Calculation of key ratios and alternative performance measures*
*Operating profit and comparable operating profit*
Operating profit (EBIT) = Profit before income taxes + net financial expenses
Comparable operating profit (EBIT) = Profit before income taxes + net financial expenses, adjusted with items affecting comparability
In order to improve the comparability of result between reporting periods, Suominen presents comparable operating profit as an alternative performance measure. Operating profit is adjusted with material items that are considered to affect comparability between reporting periods. These items include, among others, impairment losses or reversals of impairment losses, gains or losses from the sales of property, plant and equipment or intangible assets or other assets and restructuring costs. Suominen did not have any items affecting comparability in January – September 2022.
*Comparable operating profit*
EUR thousand *30.9.2023* *30.9.2022* *31.12.2022*
*Operating profit* *-8,175* *-3,969* *-8,958*
+ Dismissal costs affecting comparability 2,207 − −
+ Restoration costs affecting comparability 2,344 − −
+ Other costs affecting comparability 104 − −
+ Impairment losses of property, plant and equipment, affecting comparability of result 8 − 2,288
+ Impairment losses of right-of-use assets, affecting comparability of result 108 − 1,536
+ Impairment losses of inventories, affecting comparability of result -16 − 971
*Comparable operating profit* *-3,420* *-3,969* *-4,163*
*EBITDA and comparable EBITDA*
EBITDA = EBIT + depreciation, amortization and impairment losses
Comparable EBITDA = EBIT + depreciation, amortization and impairment losses, adjusted with items affecting comparability
EUR thousand *30.9.2023* *30.9.2022* *31.12.2022*
Operating profit -8,175 -3,969 -8,958
+ Depreciation, amortization and impairment losses 14,075 14,253 23,245
*EBITDA* * * *5,899* *10,284* *14,287*
EBITDA 5,899 10,284 14,287
+ Costs affecting comparability of result 4,639 − 971
*Comparable EBITDA* * * *10,538* *10,284* *15,257*
*Gross capital expenditure*
EUR thousand *30.9.2023* *30.9.2022* *31.12.2022*
Increases in intangible assets 126 410 438
Increases in property, plant and equipment 8,728 6,971 9,275
Gross capital expenditure 8,854 7,380 9,713
*Interest-bearing net debt*
It is the opinion of Suominen that presenting interest-bearing liabilities not only at amortized cost but also at nominal value gives relevant additional information to the investors.
Interest-bearing net debt = Interest-bearing liabilities at nominal value - interest-bearing receivables - cash and cash equivalents
EUR thousand *30.9.2023* *30.9.2022* *31.12.2022*
Interest-bearing liabilities 103,234 149,741 103,365
Tender and issuance costs of the debentures 590 753 705
Cash and cash equivalents -51 603 -84,664 -49,508
Interest-bearing net debt 52,221 65,830 54,562
Interest-bearing liabilities 103,234 149,741 103,365
Tender and issuance costs of the debentures 590 753 705
Nominal value of interest-bearing liabilities 103,824 150,494 104,069
*Return on equity (ROE), %*
Return on equity (ROE), % = Profit for the reporting period (rolling 12 months) x 100 Total equity (quarterly average)
EUR thousand *30.9.2023* *30.9.2022* *31.12.2022*
Profit for the reporting period (rolling 12 months) -20,169 -2,516 -13,863
Total equity attributable to owners of the parent 30.9.2022 / 30.9.2021 / 31.12.2021 165,188 159,682 163,199
Total equity attributable to owners of the parent 31.12.2022 / 31.12.2021 / 31.3.2022 145,916 163,199 153,504
Total equity attributable to owners of the parent 31.3.2023 / 31.3.2022 / 30.6.2022 140,131 153,504 158,098
Total equity attributable to owners of the parent 30.6.2023 / 30.6.2022 / 30.9.2022 127,236 158,098 165,188
Total equity attributable to owners of the parent 30.9.2023 / 30.9.2022 / 31.12.2022 130,283 165,188 145,916
Average 141,751 159,934 157,181
Return on equity (ROE), % -14.2 -1.6 -8.8
*Invested capital*
Invested capital = Total equity + interest-bearing liabilities - cash and cash equivalents
EUR thousand *30.9.2023* *30.9.2022* *31.12.2022*
Total equity attributable to owners of the parent 130,283 165,188 145,916
Interest-bearing liabilities 103,234 149,741 103,365
Cash and cash equivalents -51,603 -84,664 -49,508
Invested capital 181,914 230,264 199,773
*Return on invested capital (ROI), %*
Return on invested capital (ROI), %
=
Operating profit (rolling 12 months) x 100
Invested capital, quarterly average
EUR thousand *30.9.2023* *30.9.2022* *31.12.2022*
Operating profit (rolling 12 months) -13,165 -94 -8,958
Invested capital 30.9.2022 / 30.9.2021 / 31.12.2021 230,264 205,786 210,975
Invested capital 31.12.2022 / 31.12.2021 / 31.3.2022 199,773 210,975 205,806
Invested capital 31.3.2023 / 31.3.2022 / 30.6.2022 194,290 205,806 210,561
Invested capital 30.6.2023 / 30.6.2022 / 30.9.2022 182,005 210,561 230,264
Invested capital 30.9.2023 / 30.9.2022 / 31.12.2022 181,914 230,264 199,773
Average 197,649 212,679 211,476
Return on invested capital (ROI), % -6.7 0.0 -4.2
*Equity ratio, %*
Equity ratio, %
=
Total equity x 100
Total assets - advances received
EUR thousand *30.9.2023* *30.9.2022* *31.12.2022*
Total equity attributable to owners of the parent 130,283 165,188 145,916
Total assets 318,989 415,082 343,445
Advances received -104 -108 -74 318,885 414,975 343,371
Equity ratio, % 40.9 39.8 42.5
*Gearing, %*
Gearing, %
=
Interest-bearing net debt x 100
Total equity
EUR thousand *30.9.2023* *30.9.2022* *31.12.2022*
Interest-bearing net debt 52,221 65,830 54,562
Total equity attributable to owners of the parent 130,283 165,188 145,916
Gearing, % 40.1 39.9 37.4
*NET SALES BY GEOGRAPHICAL MARKET AREA*EUR thousand *1-9/2023* 1-9/2022 1-12/2022
Finland *2,529* 2,503 3,522
Rest of Europe *115,383* 145,781 193,673
North and South America *217,465* 210,482 294,367
Rest of the world *535* 1,458 1,736
Total *335,913* 360,225 493,298
*QUARTERLY SALES DEVELOPMENT BY BUSINESS AREA*
*2023* *2022*
EUR thousand *7-9* *4-6* *1-3* *10-12* *7-9* *4-6* *1-3*
Americas 70,865 69,770 75,044 81,714 80,308 64,226 61,726
Europe 35,553 42,896 41,756 51,401 51,701 53,819 48,530
Unallocated exchange differences and eliminations 29 7 -8 -43 -72 -26 12
Total 106,447 112,673 116,793 133,072 131,937 118,019 110,269
*QUARTERLY DEVELOPMENT*
*2023* *2022*
EUR thousand *7-9* *4-6* *1-3* *10-12* *7-9* *4-6* *1-3*
Net sales 106,447 112,673 116,793 133,072 131,937 118,019 110,269
Comparable EBITDA 5,200 2,690 2,648 4,973 5,124 1,863 3,298
as % of net sales 4.9 2.4 2.3 3.7 3.9 1.6 3.0
Items affecting comparability -26 -4,613 − -971 − − −
EBITDA 5,174 -1,922 2,648 4,003 5,124 1,863 3,298
as % of net sales 4.9 -1.7 2.3 3.0 3.9 1.6 3.0
Comparable operating profit 666 -2,102 -1,985 -194 202 -2,903 -1,268
as % of net sales 0.6 -1.9 -1.7 -0.1 0.2 -2.5 -1.2
Items affecting comparability -26 -4,621 -108 -4,795 − − −
Operating profit 640 -6,722 -2,093 -4,989 202 -2,903 -1,268
as % of net sales 0.6 -6.0 -1.8 -3.7 0.2 -2.5 -1.2
Net financial items -1,152 -1,293 -1,537 -2,639 -78 723 -930
Profit before income taxes -512 -8,016 -3,630 -7,628 125 -2,180 -2,198
as % of net sales -0.5 -7.1 -3.1 -5.7 0.1 -1.8 -2.0
*RELATED PARTY INFORMATION*
The related parties of Suominen include the members of the Board of Directors, President & CEO and the members of the Executive Team as well as their family members and their controlled companies. In addition, shareholders who have a significant influence in Suominen through share ownership are included in related parties. Suominen has no associated companies.
In its transactions with related parties Suominen follows the same commercial terms as in transactions with third parties.
The Annual General Meeting held on April 3, 2023, resolved that 25% of the annual remuneration for the Board of Directors is paid in Suominen Corporation’s shares. The number of shares transferred to the members of the Board of Directors as their remuneration payable in shares for 2023 was 21,949 shares. The shares were transferred on May 10, 2023, and the value of the transferred shares totaled EUR 61,457.
One of Suominen’s share-based plans vested and shares were transferred to the participants of the plan in February. The number of the shares transferred to the members of the Executive Team was 91,443 shares. The value of the shares and the portion settled in cash was EUR 552 thousand.
*CHANGES IN PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND RIGHT-OF-USE ASSETS*
*30.9.2023* 30.9.2022 31.12.2022
EUR thousand *Property, plant and equipment* *Intangible assets* Property, plant and equipment Intangible assets Property, plant and equipment Intangible assets
Carrying amount at the beginning of the period *116,195* *9,709* 115,478 13,176 115,478 13,176
Capital expenditure and increases *8,728* *126* 6,971 410 9,275 438
Disposals and decreases ** *−* − − − −
Depreciation, amortization and impairment losses *-9,012* *-2,867* -8,790 -2,886 -14,393 -3,869
Exchange differences and other changes *688* *1* 13,878 -38 5,835 -36
Carrying amount at the end of the period *116,599* *6,969* 127,537 10,662 116,195 9,709
Goodwill is not included in intangible assets.
*30.9.2023* 30.9.2022 31.12.2022
EUR thousand *Right-of-use assets* Right-of-use assets Right-of-use assets
Carrying amount at the beginning of the period *11,902* 15,741 15,741
Increases *2,221* 689 705
Disposals and decreases *-46* -13 -27
Depreciation, amortization and impairment losses *-2,196* -2,577 -4,983
Exchange differences and other changes *17* 1,049 466
Carrying amount at the end of the period *11,898* 14,890 11,902
*CHANGES IN INTEREST-BEARING LIABILITIES *EUR thousand *1-9/2023* 1-9/2022 1-12/2022
*Total interest-bearing liabilities at the beginning of the period* *103,365* 149,134 149,134
Current liabilities at the beginning of the period *42,855* 86,823 86,823
Repayment of current liabilities, cash flow items *-202,469* -2,325 -88,003
Drawdown of current liabilities, cash flow items *200,000* − 40,000
Increases in current liabilities, non-cash flow items *738* 242 260
Decreases of current liabilities, non-cash flow items *-37* -13 -15
Reclassification from non-current liabilities *2,145* 2,268 2,770
Periodization of debentures to amortized cost, non-cash flow items *−* 928 938
Exchange rate difference, non-cash flow item *13* 208 83
Current liabilities at the end of the period *43,245* 88,131 42,855
Non-current liabilities at the beginning of the period *11,215* 13,167 13,167
Increases in non-current liabilities, non-cash flow items *1,483* 448 445
Decreases of non-current liabilities, non-cash flow items *-10* − -12
Reclassification to current liabilities *-2,145* -2,268 -2,770
Exchange rate difference, non-cash flow item *38* 1,007 385
Non-current liabilities at the end of the period *10,579* 12,353 11,215
Non-current debentures at the beginning of the period *49,295* 49,144 49,144
Periodization of debentures to amortized cost, non-cash flow items *115* 113 151
Non-current debentures at the end of the period *49,410* 49,257 49,295
*Total interest-bearing liabilities at the end of the period* *103,234* 149,741 103,365
*CONTINGENT LIABILITIES*
EUR thousand *30.9.2023* 30.9.2022 31.12.2022
*Other commitments *
Leasing commitments *80* 110 98
Contractual commitments to acquire property, plant and equipment *1,316* 2,743 2,641
Commitments to leases not yet commenced *38* 240 429
*Guarantees*
On own behalf *3,120* 4,002 3,102
Other own commitments *19,533* 18,994 16,755 *22,653* 22,996 19,857
*NOMINAL AND FAIR VALUES OF DERIVATIVE INSTRUMENTS*
*30.9.2023* *30.9.2022* *31.12.2022*
EUR thousand Nominal value Fair
value Nominal
value Fair
value Nominal
value Fair
value
Currency forward contracts
Hedge accounting not applied − − 749 -35 − −
*FINANCIAL ASSETS BY CATEGORY*
a. Fair value through profit or loss
b. Financial assets at amortized cost
c. Financial assets at fair value through other comprehensive income
d. Carrying amount
e. Fair value
*Classification*
EUR thousand *a.* *b.* *c.* *d.* *e.*
Equity instruments − − 421 421 421
Trade receivables − 59,776 − 59,776 59,776
Interest and other financial receivables − 234 − 234 234
Cash and cash equivalents − 51,603 − 51,603 51,603
*Total 30.9.2023* *−* *111,614* *421* *112,035* *112,035*
EUR thousand *a.* *b.* *c.* *d.* *e.*
Equity instruments − − 421 421 421
Trade receivables − 66,648 − 66,648 66,648
Interest and other financial receivables − 334 − 334 334
Cash and cash equivalents − 49,508 − 49,508 49,508
*Total 31.12.2022* *−* *116,490* *421* *116,911* *116,911*
Principles in estimating fair value of financial assets for 2023 are the same as those used for preparing the consolidated financial statements for 2022.
*FINANCIAL LIABILITIES* *30.9.2023* *31.12.2022*
EUR thousand *Carrying amount* *Fair value* *Nominal value* Carrying amount Fair value Nominal value
*Non-current financial liabilities*
Debentures 49,410 40,825 50,000 49,295 39,425 50,000
Lease liabilities 10,579 10,579 10,579 11,215 11,215 11,215
Total non-current financial liabilities 59,990 51,404 60,579 60,510 50,640 61,215
*Current financial liabilities*
Current loans from financial institutions 40,000 40,000 40,000 40,000 40,000 40,000
Lease liabilities 3,245 3,245 3,245 2,855 2,855 2,855
Interest accruals 439 439 439 734 734 734
Other current liabilities 380 380 380 353 353 353
Trade payables 54,508 54,508 54,508 64,565 64,565 64,565
Total current financial liabilities 98,572 98,572 98,572 108,506 108,506 108,506
*Total* *158,562* *149,977* *159,152* 169,016 159,146 169,721 Principles in estimating fair value for financial liabilities for 2023 are the same as those used for preparing the consolidated financial statements for 2022.
*FAIR VALUE MEASUREMENT HIERARCHY*EUR thousand *Level 1* *Level 2* *Level 3*
*Financial assets at fair value*
Equity instruments − − 421
*Total* *−* *−* *421*
Principles in estimating fair value of financial assets and their hierarchies for 2023 are the same as those used for preparing the consolidated financial statements for 2022.
There were no transfers in the fair value measurement hierarchy levels during the reporting period.
SUOMINEN CORPORATION
Board of Directors
For additional information, please contact:
Tommi Björnman, President & CEO, tel. +358 10 214 3018
Janne Silonsaari, CFO, tel. +358 50 409 9264
Suominen manufactures nonwovens as roll goods for wipes and other applications. Our vision is to be the frontrunner for nonwovens innovation and sustainability. The end products made of Suominen’s nonwovens are present in people’s daily life worldwide. Suominen’s net sales in 2022 were EUR 493.3 million and we around 700 professionals working in Europe and in the Americas. Suominen’s shares are listed on Nasdaq Helsinki. Read more at www.suominen.fi.
Distribution:
Nasdaq Helsinki
Main media
www.suominen.fi
*Attachment*
· Suominen Corporation Interim Report Q3 2023