Insights
- Suominen Corporation reported a slight drop in Q1 FY24 net sales to €113.6 million (~$121.9 million), a 3 per cent decline from last year.
- Despite this, EBITDA rose to €4.5 million from €2.6 million.
- Operating profit improved to €0.1 million, recovering from a €2.1 million loss.
- Sales varied across regions, with gains in EMEA and declines in the Americas.
Suominen Corporation, a Finland-based leading supplier of nonwoven materials, has reported a slight decline in net sales by 3 per cent year-over-year in the first quarter of fiscal 2024 (Q1 FY24), amounting to €113.6 million (approximately $121.9 million) compared to €116.8 million in the same period last year.
Despite the overall decrease in net sales, the company experienced a positive shift in its earnings before interest, taxes, depreciation, and amortisation (EBITDA). Comparable EBITDA improved significantly from €2.6 million in the first quarter of FY23 to €4.5 million in the current quarter. Similarly, the company’s comparable operating profit saw an improvement, reaching minus €0.1 million from a previous minus €2 million. The reported operating profit for the quarter was €0.1 million, marking a recovery from a loss of €2.1 million in the previous year, the company said in a press release.
The breakdown of net sales by geographical region indicates mixed results across different markets. In the Americas, net sales decreased to €70 million from €75 million, whereas in the Europe, Middle East, and Africa (EMEA) region, sales increased to €43.5 million from €41.8 million. The detailed figures for sales across other regions including Finland, the rest of Europe, North and South America, and the rest of the world also reflect variations, with most regions experiencing slight declines in sales.
“The year 2024 has started with positive signs of demand recovery. Although the business environment has remained challenging, we were able to improve our quarterly comparable EBITDA to €4.5 million, supported by increased sales volumes, especially in EMEA, and better sales margins,” said Tommi Bjornman, president & CEO.