Suominen Corporation’s Financial Statements Release for January 1 –
December 31, 2023: Outlook met in challenging environment
Suominen Corporation Financial Statements Release on February 6,
2024 at 9:30 a.m. (EET)
Suominen Corporation’s Financial Statements Release for January 1 –
December 31, 2023:
Outlook met in challenging environment
Key figures
| |
10-12/ |
10-12/ |
1-12/ |
1-12/ |
|
|
2023 |
2022 |
2023 |
2022 |
| Net sales, EUR
million |
114.9 |
133.1 |
450.9 |
493.3 |
| Comparable
EBITDA, EUR million |
5.3 |
5.0 |
15.8 |
15.3 |
| Comparable
EBITDA, % |
4.6 |
3.7 |
3.5 |
3.1 |
| EBITDA, EUR
million |
5.3 |
4.0 |
11.2 |
14.3 |
| EBITDA, % |
4.6 |
3.0 |
2.5 |
2.9 |
| Comparable
operating profit, EUR million |
0.7 |
-0.2 |
-2.8 |
-4.2 |
| Comparable
operating profit, % |
0.6 |
-0.1 |
-0.6 |
-0.8 |
| Operating
profit, EUR million |
0.7 |
-5.0 |
-7.5 |
-9.0 |
| Operating
profit, % |
0.6 |
-3.7 |
-1.7 |
-1.8 |
| Profit for the
period, EUR million |
-1.4 |
-8.8 |
-12.8 |
-13.9 |
| Cash flow from
operations, EUR million |
13.1 |
15.6 |
30.7 |
14.0 |
| Cash flow from
operations per share, EUR |
0.23 |
0.27 |
0.53 |
0.24 |
| Earnings per
share, basic, EUR |
-0.02 |
-0.15 |
-0.22 |
-0.24 |
| Dividend per
share, EUR* |
− |
− |
0.10 |
0.10 |
| Return on
invested capital, rolling 12 months, % |
− |
− |
-4.1 |
-4.2 |
| Gearing, % |
− |
− |
35.3 |
37.4 |
|
|
|
|
| *
2023 Proposal of the Board to the Annual General Meeting |
|
|
In this Financial Statements Release, the figures shown in brackets
refer to the comparison period last year if not otherwise
stated.
October–December 2023 in brief:
- Net sales decreased by 14% and were EUR 114.9 million
(133.1)
- Comparable EBITDA was EUR 5.3 million (5.0)
- Cash flow from operations was EUR 13.1 million (15.6)
Financial year 2023 in brief:
- Net sales decreased by 9% and were EUR 450.9 million
(493.3)
- Comparable EBITDA was EUR 15.8 million (15.3)
- Cash flow from operations totaled to EUR 30.7 million (14.0)
- Board of Directors proposes to the Annual General meeting a
dividend of EUR 0.10 per share
Outlook:
Suominen expects that its comparable EBITDA (earnings before
interest, taxes, depreciation and amortization) in 2024 will
improve from 2023. In 2023, Suominen’s comparable EBITDA was EUR
15.8 million.
Board proposal on distribution of dividend:
The Board of Directors proposes to the Annual General meeting,
that a dividend of EUR 0.10 per share shall be distributed for the
financial year 2023.
On February 5, 2024, the company had 57,692,459 issued shares,
excluding treasury shares. With this number of shares, the total
amount of dividends to be distributed would be EUR
5,769,245.90.
Tommi Björnman, President and CEO:
”Year 2023 was still challenging in terms of the profitability
but in the second half our improvement actions started gradually to
contribute to the result.
Our comparable EBITDA increased slightly from the previous year
and was EUR 15.8 million (15.3). After the first half of the year
our commercial and operational excellence improvements started to
contribute and we were able to improve our sales margins which
translated into better EBITDA. We will systematically continue
these efforts to improve our financial and operational performance
going forward.
Our net sales in 2023 were EUR 450.9 million (493.3). The
decline from the previous year came mainly from lower sales prices
driven by lower raw material prices and minor decline in volumes
for the most part due to the closure of Mozzate plant.
During the first half of the year, we closed our production in
Mozzate, Italy. This decision was made to improve the
competitiveness of our European business. We continue our actions
to improve operational efficiency in our other plants.
The wipes nonwovens market is rapidly transitioning towards more
sustainable solutions. In line with our strategy, we have set
targets to increase the sales of sustainable products and to
continuously innovate new environmentally friendly nonwovens. In
2023 we increased the sales of sustainable products by 79%
exceeding our target of 50% increase compared to our base year
2019. We also completed an investment project in Nakkila, Finland,
to further strengthen our capabilities in sustainable nonwovens.
Our strong ability to innovate and to meet market needs is
reflected in the share of new products of our net sales, which
exceeded 35%. By new products, we mean products launched less than
three years ago.
In 2023 we completed the EcoVadis sustainability assessment for
the second time and received a silver level rating. 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.
In the end of the year, we announced our new organizational
model. The new model strengthens collaboration between our
commercial teams and production. Business areas are now responsible
for both Sales and Production and that enables us to be more
efficient, focused and agile when striving to improve our
profitability and serve our customers even better.
Looking at the year ahead we see some positive signals from the
market and customers. I am confident that ongoing improvement
actions and changes will help us in our journey towards profitable
growth.
Finally, I want to thank all our employees for their commitment
and contribution and our business partners for productive
cooperation in 2023.”
NET SALES
October–December 2023
In the fourth quarter, Suominen’s net sales decreased by 14%
from the comparison period to EUR 114.9 million (133.1). Sales
volumes increased slightly from the comparison period while sales
prices decreased clearly driven by the lower raw material prices.
Currencies impacted net sales negatively by EUR 3.5 million.
Net sales of the Americas business area amounted to EUR 72.3
million (81.7) and net sales of the Europe business area EUR 42.6
million (51.4).
Financial year 2023
In 2023, Suominen’s net sales decreased by 9% from the
comparison period to EUR 450.9 million (493.3). The decrease in
sales was driven by lower sales prices resulting from lower raw
material prices. Sales volumes decreased slightly from 2022 mainly
related to the plant closure in Mozzate. Currencies impacted net
sales negatively by EUR 6.8 million.
Net sales of Americas business area were EUR 288.0 million
(288.0) and net sales of Europe business area EUR 162.8 million
(205.5).
EBITDA, OPERATING PROFIT AND RESULT
October–December 2023
Comparable EBITDA (earnings before interest, taxes, depreciation
and amortization) was EUR 5.3 million (5.0). EBITDA was EUR 5.3
million (4.0). The main reasons for the result increase were
improved sales margins and slightly higher sales volumes.
Currencies impacted EBITDA negatively by EUR 0.1 million.
Comparable operating profit improved from the corresponding
period of the previous year and was EUR 0.7 million (-0.2).
Operating profit was EUR 0.7 million (-5.0).
Items affecting comparability of EBITDA as well as operating
profit in 2023 were EUR 0.01 million and they were related to the
closure of Mozzate plant. In the fourth quarter of 2022, items
affecting comparability of EBITDA were EUR -1.0 million and of
operating profit EUR -4.8 million.
Result before income taxes in the fourth quarter was EUR -1.3
million (-7.6) and profit for the period EUR -1.4 million (-8.8).
The income taxes for the period were EUR -0.1 million (-1.2).
Financial year 2023
Comparable EBITDA (earnings before interest, taxes, depreciation
and amortization) was EUR 15.8 million (15.3). EBITDA was EUR 11.2
million (14.3). Comparable EBITDA increase was driven by the
improved sales margins while sales volumes decreased slightly due
to Mozzate closure. Currencies impacted EBITDA positively by EUR
0.6 million. Items affecting comparability of EBITDA were -4.7 EUR
million (-1.0), related to the closure of Mozzate plant.
Comparable operating profit amounted to EUR -2.8 million (-4.2).
Operating profit amounted to EUR -7.5 million (-9.0).
Items affecting comparability of operating profit were EUR -4.8
million (-4.8), related to the closure of Mozzate plant.
In 2023, profit before income taxes was EUR -13.5 million
(-11.9). Income taxes for the financial year were EUR 0.7 million
(-2.0).
The profit for the period was EUR -12.8 million (-13.9).
FINANCING
The Group’s net interest-bearing liabilities, calculated with
the nominal value of the interest-bearing liabilities at the end of
the review period, December 31, 2023, amounted to EUR 44.1 million
(54.6). Gearing was 35.3% (37.4%) and equity ratio 39.5%
(42.5%).
In 2023, net financial expenses were EUR -6.0 million (-2.9), or
1.3% (0.6%) of net sales. Net effect of changes in foreign exchange
rates in financial items were EUR -0.6 million (+2.8).
Cash flow from operations in the fourth quarter was EUR 13.1
million (15.6). Cash flow from operations in 2023 was EUR 30.7
million (14.0). Cash flow from operations per share in 2023 was EUR
0.53 (0.24). The financial items in the cash flow from operations,
in total EUR -5.0 million (-4.7), were principally impacted by the
interests paid during the reporting period. The change in the net
working capital in 2023 was EUR 25.7 million positive (EUR 7.8
million positive) mainly thanks to less cash being tied up to
inventory.
CAPITAL EXPENDITURE
In 2023, the gross capital expenditure totaled EUR 11.2 million
(9.7) and the largest item was related to the growth investment
initiatives in Nakkila, Finland. Other investments were mainly for
maintenance.
Depreciations and amortizations were EUR -18.6 million (-19.4)
and impairment losses were EUR -0.1 million (-3.8).
CLOSURE OF MOZZATE PLANT IN ITALY
In 2023, Suominen completed the consultation procedure with
local trade unions regarding the plan to permanently close
manufacturing at the Mozzate plant. Following the completion of the
process, Suominen moved forward with its plan which led to the
closure of manufacturing at the plant and termination of employment
of 55 employees in Mozzate.
The terminations resulted in approximately EUR 2.2 million
non-recurring expenses which were recognized in the second quarter
of 2023. In addition, other non-recurring expenses related to the
closure amounted to EUR 2.6 million during 2023.
PERSONNEL
During 2023, Suominen employed 682 FTEs (707) on average, and
659 (710) FTEs at the end of 2023. The decrease is mainly due to
the personnel reductions related to the closure of Mozzate
plant.
PROGRESS IN SUSTAINABILITY
We have a comprehensive approach to sustainability and our
Sustainability agenda 2020‒2025 defines our focus areas and their
KPIs.
We have strong focus on safety and accident prevention, and our
long-term target is to have zero lost-time accidents. In 2023,
Suominen had 6 (2) lost time accidents.
Increasing employee engagement is another of our key
people-related targets. We conducted a fourth consecutive global
employee engagement survey in 2023 and based on the results our
employee engagement index is 66% (65%). The index is a combination
of questions concerning our people's retention, likelihood to
recommend the company, organizational pride and commitment. Our
target is that our engagement index will be 73% by 2025.
We are committed to continuously improving our production
efficiency and the efficient utilization of natural resources. Our
target is to reduce our 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. By the end of
2023, our water consumption has decreased by 0.7% and greenhouse
gas emissions by 14.9% per ton of product compared to 2019. We did
not succeed in our targets to reduce our energy consumption and
waste to landfill in 2023. As an example of our continuous work to
decrease our greenhouse gas emissions, we shifted to fossil free
electricity in our Paulínia plant in Brazil. All our European
plants shifted to fossil free electricity in 2022.
Regarding sustainable products, our target is to increase their
sales by 50% by 2025 and to have over 10 sustainable product
launches per year. In 2023, we launched 12 sustainable products,
and the sales of sustainable product sales has increased by 79%
compared to the base year of 2019.
As part of our Annual Report 2023 which will be published in the
week starting on March 11, 2024, we report the development of our
sustainability performance. Our sustainability reporting in 2023 is
in accordance with the GRI Standards by the Global Reporting
Initiative and it is assured by an independent assurance
provider.
SHARE INFORMATION
Share capital
The number of Suominen’s registered shares was 58,259,219 on
December 31, 2023, equaling to a share capital of EUR
11,860,056.00. Suominen has one series of shares. Each share
carries one vote in the Shareholders’ Meeting and right to an
equally-sized dividend. Suominen’s shares are affiliated in a
book-entry system.
Share trading and price
The number of Suominen Corporation shares (SUY1V) traded on
Nasdaq Helsinki from January 1 to December 31, 2023, was 2,743,668
shares, accounting for 4.8% of the average number of shares
(excluding treasury shares). The highest price was EUR 3.48, the
lowest EUR 2.48, and the volume-weighted average price EUR 2.85.
The closing price at the beginning of the review period, on January
2, 2023, was EUR 3.06 and the closing price on the last trading
date of the review period, on December 29, 2023, was EUR 2.85.
The market capitalization (excluding treasury shares) was EUR
164.4 million on December 31, 2023.
Treasury shares
On December 31, 2023, Suominen Corporation held 566,760 treasury
shares.
As a share-based incentive 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
(AGM), in total 21,949 shares were transferred to the members of
the Board of Directors as their remuneration payable in shares
during the reporting period.
The portion of the remuneration of the members of the
Board of Directors paid in shares
The AGM 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 shares were
given out of the treasury shares held by the company on May 10,
2023.
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.
In accordance with the resolution by the Annual General Meeting,
in total 21,949 shares were transferred to the members of the Board
of Directors as their remuneration payable in shares during the
reporting period.
In February 2023, in accordance with the share-based incentive
plan, 189,783 shares were transferred to the participants of the
plan.
After these transactions, the maximum amount of the
authorization is 4,788,268 shares in aggregate.
Share-based incentive plans for the management and key
employees valid in 2023
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 |
687,000 |
The 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.
SHAREHOLDERS
At the end of the review period, on December 31, 2023, Suominen
Corporation had in total 5,376 shareholders. Suominen is not aware
of any shareholder agreements related with the shareholding or use
of voting rights. Detailed information on the management
shareholding and a table presenting the largest shareholders is
available in the notes of this Financial Statements
Release.
Notifications under Chapter 9, Section 10 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
Klaus Korhonen, SVP, HR & Legal acted as
interim President & CEO until March 31, 2023.
Toni Tamminen, CFO, left Suominen on February
3, 2023.
Tommi Björnman started as the President
& CEO on April 1, 2023.
Janne Silonsaari started as the CFO on
June 1, 2023.
Jonni Friman started as SVP,
Transformation Management Office on June 1, 2023.
Lynda Kelly, SVP, Americas & Business
Development left Suominen on August 22, 2023. Markku
Koivisto, SVP, Europe & R&D was appointed as
interim SVP, Americas until October 31, 2023.
Thomas Olsen started as SVP, Americas on
November 1, 2023.
COMPOSITION OF THE 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 Corporation,
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 Corporation, to attend the
Nomination Board’s meetings as an advisor.
PROPOSALS OF THE NOMINATION BOARD TO THE AGM
2024
Proposal on the number of the members, on the composition,
and on the Chair of the Board of Directors
The Nomination Board of Suominen Corporation’s shareholders
proposes to the Annual General Meeting that the number of Board
members remains unchanged and would be six (6).
The Nomination Board proposes to the Annual General Meeting that
Andreas Ahlström, Aaron Barsness, Björn Borgman, Nina Linander and
Laura Remes would be re-elected as members of the Board of
Directors and that Charles Héaulmé would be elected as a new member
of the Board of Directors.
Jaakko Eskola, the current Chair of the Board of Directors, has
informed that he is not available for re-election to the Board of
Directors.
Charles Héaulmé (born 1966, B. Sc. (Business Administration),
French citizen) currently works as the President and CEO of
Huhtamäki Oyj. Prior to that he has held a number of executive
positions at Tetra Pak in Europe and Americas.
All candidates have given their consent to the election. All
candidates are independent of the company. The candidates are also
independent of Suominen’s significant shareholders, with the
exception of Andreas Ahlström who acts currently as Investment
Director at A. Ahlström Corporation. The largest shareholder of
Suominen Corporation, Ahlstrom Capital B.V. is a group company of
A. Ahlström Corporation.
The Nomination Board proposes to the Annual General Meeting that
Charles Héaulmé would be elected as the Chair of the Board of
Directors.
With regard to the selection procedure for the members of the Board
of Directors, the Nomination Board recommends that shareholders
take a position on the proposal as a whole at the Annual General
Meeting. In preparing its proposals the Nomination Board, in
addition to ensuring that individual nominees for membership of the
Board of Directors possess the required competences, has determined
that the proposed Board of Directors as a whole also has the best
possible expertise for the company and that the composition of the
Board of Directors meets other requirements of the Finnish
Corporate Governance Code for listed companies.
Proposal on the Board remuneration
The Nomination Board proposes that the remuneration of the Board of
Directors would be as follows: the Chair would be paid an annual
fee of EUR 74,000 (2023: EUR 70,000), the Deputy Chair an annual
fee of EUR 45,000 (2023: 33,000) and other Board members an annual
fee of EUR 35,000 (2023: EUR 33,000). The Nomination Board also
proposes that the additional fee paid to the Chair of the Audit
Committee would remain unchanged and be EUR 10,000.
Further, the Nomination Board proposes that the fees payable for
each Board and Committee meeting would remain unchanged and be 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 attended by telephone or other electronic means. No fee is
paid for decisions made without convening a meeting.
75% of the annual fees is paid in cash and 25% in Suominen
Corporation’s shares. The shares will be transferred out of the own
shares held by the company by the decision of the Board of
Directors within two weeks from the date on which the interim
report of January–March 2024 of the company is published.
Compensation for expenses will be paid in accordance with the
company's valid travel policy.
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 earlier in this 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.
BUSINESS RISKS AND UNCERTAINTIES
Manufacturing risks
Suominen has production plants in several European countries,
United States and Brazil. Interruptions at the plants caused for
example by machinery breakdown can cause production losses and
delivery problems. Ongoing maintenance and investments aiming to
extend the lifetime of the assets are an essential part of ensuring
the operational efficiency of the existing production lines.
Suominen’s operations could be disrupted due to abrupt and
unforeseen events beyond the company's control, such as power
outages or fire and water damage. Suominen may not be able to
control such events through predictive actions, which could lead to
interruptions in business. Risks of this type are insured in order
to guarantee the continuity of operations. As Suominen has valid
property damage and business interruption insurances, it is
expected that the damage would be compensated, and the financial
losses caused by the interruption of business would be covered.
Suominen uses certain technologies in its production. In the
management’s view, the chosen technologies are competitive and
there is no need to make major investments in new technologies.
However, it cannot be excluded that the company’s technology
choices could prove wrong, and the development of new or substitute
technologies would then require investments.
Competition
Suominen has numerous regional, national and global competitors in
its different product groups. Products based on new technologies
and imports from countries of lower production costs may reduce
Suominen’s competitive edge. If Suominen is not able to compete
with an attractive product offering, it may lose some of its market
share. Competition may lead to increased pricing pressure on the
company’s products.
Price and availability of raw materials
Suominen purchases significant amounts of pulp- and oil-based raw
materials. Raw materials are the largest cost item for operations.
Changes in the global market prices of raw materials can have an
impact on the company’s profitability. Suominen’s stocks equal two
to four weeks’ consumption and it generally takes two to five
months for raw material price changes to be reflected in Suominen’s
customer pricing either through automatic pricing mechanisms or
negotiated price changes.
Extended interruptions in the supply of Suominen’s main raw
materials could disrupt production and have a negative impact on
the Group’s overall business operations. As Suominen sources most
of its raw materials from a number of major international
suppliers, significant interruptions in the production of the
majority of Suominen’s products are unlikely.
Price and availability of energy
Energy costs represent a significant portion of Suominen's
production costs. Suominen consumes mainly electricity and gas.
Higher prices as well as reduced availability of energy could have
an impact on Suominen's profitability through increased production
costs.
Market and customer risks
Suominen’s customer base is fairly concentrated, which increases
the potential impact of changes in customer specific sales volumes.
In 2023, the Group’s ten largest customers accounted for 69.9%
(64.3%) of the Group net sales. Long-term contracts are preferred
with the largest customers. In practice, the customer relationships
are long-term and last for several years. Customer-related credit
risks are managed in accordance with a credit policy approved by
the Board of Directors. Credit limits are confirmed for customers
on the basis of credit ratings and customer history.
The demand for Suominen’s products depends on possible changes
in consumer preferences. Historically, such changes have had mainly
a positive impact on Suominen, as they have resulted in the growing
demand for products made of nonwovens. For example, the COVID-19
pandemic increased the demand for nonwovens for cleaning and
disinfecting wipes. However, certain factors, including consumers’
attitude towards the use of products made even partially of
oil-based raw materials, or their perception on the sustainability
of disposable products in general, might change the consumers’
buying habits. Suominen monitors the consumer trends proactively
and develops its product offering accordingly. The company has had
biodegradable, 100% plant-based nonwovens in its portfolio for over
15 years and hence is well positioned to respond to changes in
customer preferences related to sustainability and climate
change.
Generally, the demand for nonwovens for wipes has been resilient
to changing economic conditions. However, it is conceivable that
high consumer price inflation could lead to decline in end consumer
demand for wiping products as the consumers’ available income
effectively decreases.
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 is mostly affected by the indirect
economic impacts of the war which contribute to the cost
inflation.
The instabilities in different parts of the world continue to
cause general uncertainty.
Changes in legislation, political environment, or
economic conditions
Suominen’s business and products can be affected directly or
indirectly by political decisions and changes in government
regulations for example in areas such as environmental policy or
waste legislation. An example of such legislation is the EU's
Single-Use Plastics Directive that focuses on reducing marine
litter. The potential exists for similar regulations to expand
worldwide. This creates demand for more sustainable products, and
Suominen is well placed to respond to this increasing demand.
Global political developments could have an adverse effect on
Suominen. For instance, a political decision that constrains the
global free trade may significantly impact the availability and
price of certain raw materials, which would in turn affect
Suominen’s business and profitability. Suominen’s geographical and
customer-industry diversity provide partial protection against this
risk.
The relevance of the United States in Suominen’s business
operations increases the significance of the exchange rate risk
related to USD in the Group’s total foreign exchange position.
Suominen hedges this foreign exchange position in accordance with
its hedging policy.
The risks that are characteristic to South American region,
including significant changes in political environment or exchange
rates, could have an impact on Suominen’s operations in Brazil.
Investments
Suominen continuously invests in its manufacturing facilities. The
deployment of the investments may delay from what was planned, the
costs of the investments may increase from what has been expected
or the investments may create less business benefits than
anticipated. The deployment phase of investments may cause
temporary interruptions in operations.
Cyber and information security
Suominen’s operations are dependent on the integrity, security
and stable operation of its information and communication systems
and software as well as on the successful management of cyber
attack risks. If Suominen’s information and communication systems
and software were to become unusable or significantly impaired for
an extended period of time, or the cyber attack risks are realized,
Suominen’s reputation as well as ability to deliver products at the
appointed time, order raw materials and handle inventory could be
adversely impacted.
Financial risks
The Group is exposed to several financial risks, such as foreign
exchange, interest rate, counterparty, liquidity and credit risks.
The Group’s financial risks are managed in line with a policy
confirmed by the Board of Directors. The financial risks are
described in the Note 3 of the consolidated financial
statements.
Suominen is subject to corporate income taxes in numerous
jurisdictions. Significant judgment is required to determine the
total amount of corporate income tax at Group level. There are many
transactions and calculations that leave room for uncertainty as to
the final amount of the income taxes. Tax risks relate also to
changes in tax rates or tax legislation or misinterpretations, and
materialization of the risks could result in increased payments or
sanctions by the tax authorities, which in turn could lead to
financial loss. Deferred tax assets included in the statement of
financial position require that the deferred tax assets can be
recovered against the future taxable income.
Suominen performs goodwill impairment testing annually. In
impairment testing the recoverable amounts are determined as the
value in use, which comprises of the discounted projected future
cash flows. Actual cash flows can differ from the discounted
projected future cash flows. Uncertainties related to the projected
future cash flows include, among others, the long economic useful
life of the assets and changes in the forecast sales prices of
Suominen’s products, production costs as well as discount rates
used in testing. Due to the uncertainty inherent in the future, it
is possible that Suominen’s recoverable amounts will be
insufficient to cover the carrying amounts of assets, particularly
goodwill. If this happens, it will be necessary to recognize an
impairment loss, which, when implemented, will weaken the result
and equity. Goodwill impairment testing has been described in the
consolidated financial statements.
BUSINESS ENVIRONMENT
Suominen’s nonwovens are, for the most part, used in daily
consumer goods such as wet 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 signals from the market and customers, but
the overall global economic uncertainty and fierce competition
continue to make the longer-term visibility challenging. 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.
Instabilities in Israel and lately in Suez Canal, and the war in
Ukraine continue to generate uncertainty globally. Possible impacts
to Suominen are expected to be indirect and we continue to monitor
the situations.
OUTLOOK
Suominen expects that its comparable EBITDA (earnings before
interest, taxes, depreciation and amortization) in 2024 will
improve from 2023. In 2023, Suominen’s comparable EBITDA was EUR
15.8 million.
PROPOSAL ON DISTRIBUTION OF FUNDS
The profit of the financial year 2023 of Suominen Corporation,
the parent company of Suominen Group, was EUR 6,017,124.66. The
funds distributable as dividends, including the profit for the
period, were EUR 16,338,510 and total distributable funds were EUR
92,030,846.
The Board of Directors proposes that a dividend of EUR 0.10 per
share shall be distributed for the financial year 2023 and that the
profit shall be transferred to retained earnings.
On February 5, 2024, the company had 57,692,459 issued shares,
excluding treasury shares. With this number of shares, the total
amount of dividends to be distributed would be EUR
5,769,245.90.
There have been no significant changes in the company’s
financial position after the end of the review period.
The record date is April 8, 2024, and the dividend will be paid
on April 15, 2024.
DISCLOSURE OF THE CORPORATE GOVERNANCE STATEMENT,
REMUNERATION REPORT, THE FINANCIAL STATEMENTS, THE REPORT BY THE
BOARD OF DIRECTORS AND NON-FINANCIAL REPORT
Suominen will publish its Financial Statements, Report by the
Board of Directors, Auditor’s Report, Corporate Governance
Statement, Remuneration Report and Non-Financial Report including
EU Taxonomy report, concerning the financial year 2023, as part of
the Annual Report during the week commencing March 11, 2024. The
above documents will be published as a Stock Exchange Release and
they will be available also at www.suominen.fi.
ANNUAL GENERAL MEETING 2024
The Annual General Meeting of Suominen Corporation is planned to
be held on April 4, 2024. The Board of Directors will convene the
Annual General Meeting by issuing a Notice to the Annual General
Meeting as a Stock Exchange Release. The notice to the Annual
General Meeting will also be published at www.suominen.fi.
EVENTS AFTER THE REPORTING PERIOD
The Board of Directors of Suominen Corporation resolved
on a new share-based incentive plan for management and key
employees
The Board of Directors of Suominen Corporation has resolved to
establish a new share-based incentive plan for key employees of the
group. The purpose of the plan is to align the interests of the
company’s shareholders and key employees to increase the company’s
value in the long-term, to commit key employees to implement the
company's strategy, objectives and long-term interest, and to
reward them for high performance.
The Performance Share Plan 2024–2028 consists of three
performance periods, covering the financial years 2024–2026,
2025–2027 and 2026–2028 respectively. The Board of Directors will
resolve annually on the commencement and details of a performance
period.
In the plan, the target group has an opportunity to earn
Suominen shares based on performance. The performance criteria of
the performance period 2024-2026 are tied to Absolute Total
Shareholder Return (weight 40%) covering the years 2024-2026,
Relative Total Shareholder Return (weight 40%) covering the years
2024-2026, and operative performance and sustainability goal
(weight 20%) covering the year 2024 and measuring the company’s
target to improve its raw material efficiency. The potential
rewards from the plan will be paid after the end of the performance
period.
The value of the rewards to be paid on the basis of the plan
corresponds to a maximum total of 1,090,349 shares of Suominen,
including also the proportion to be paid in cash. The target group
in the performance period 2024—2026 consists of 27 key employees,
including the CEO and other members of the Executive Management
Team.
The potential reward will be paid partly in Suominen’s shares
and partly in cash. The cash proportion of the reward is intended
to cover taxes and statutory social security contributions arising
from the reward to the key employee. As a rule, no reward will be
paid if the key employee’s employment or director contract
terminates before the reward payment.
The Executive Management Team member must hold 50 per cent of
the received shares, until the value of the Executive Management
Team member’s total shareholding in Suominen equals to 50 per cent
of their annual base salary for the calendar year preceding the
payment of the reward. Respectively, the CEO must hold 50 per cent
of the received shares, until the value of the CEO’s total
shareholding in Suominen equals to 100 per cent of the CEO’s annual
base salary for the preceding calendar year. Such number of
Suominen shares must be held as long as the membership in the
Executive Management Team or the position as the CEO continues.
THE NEXT FINANCIAL REPORT
Suominen Corporation will publish its Interim Report for
January–March 2024 on Tuesday, May 7, 2024.
ANALYST AND NEWS CONFERENCE
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. (EET). The audiocast can be followed at
https://suominen.videosync.fi/2023-financial-statements-release/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=10012058.
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.
SUOMINEN GROUP JANUARY 1 – DECEMBER 31,
2023
The consolidated financial statements of Suominen have been
audited. The Auditor’s report has been signed on February 5, 2024.
Quarterly information, half-year report and interim reports have
not been audited.
As result of rounding differences, the figures presented in the
tables do not necessarily add up to total.
ACCOUNTING PRINCIPLES
The consolidated financial statements of Suominen Group are
prepared in accordance with International Financial Reporting
Standards (IFRS), including International Accounting Standards
(IAS) and Interpretations issued by the International Financial
Reporting Interpretations Committee (SIC and IFRIC). International
Financial Reporting Standards are standards and their
interpretations adopted in accordance with the procedure laid down
in regulation (EC) No 1606/2002 of the European Parliament and of
the Council. The Notes to the Financial Statements are also in
accordance with the Finnish Accounting Act and Ordinance and the
Finnish Companies' Act.
This financial statement release has been prepared in accordance
with the principles defined in IAS 34 Interim Financial Reporting
as approved by the European Union. Financial statement release does
not include all information required for full financial
statements.
The principles for preparing consolidated financial statements
are mainly the same as those used for preparing the consolidated
financial statements for 2022. The new or amended standard, annual
improvements, or interpretations applicable from January 1, 2023,
are presented below.
New or amended standard, annual improvements or
interpretations applicable from January 1, 2023:
- Disclosure of Accounting Policies – Amendments to IAS 1 and
IFRS Practice Statement 2, applicable from January 1, 2023. The
amendment replaced the requirement to disclose "significant"
accounting policies with a requirement to disclose "material"
accounting policies. The amendment aims to help companies to
disclose accounting policies, which are material for users to
understand the information in the company's financial statements.
The amendments require judgement in determining whether accounting
policies are material or not. The amendment has had some effect on
the disclosure of accounting policies in Suominen's consolidated
financial statements, as the accounting principles presented in the
consolidated financial statements concentrate on presenting the
accounting principles which are material for Suominen.
- Definition of Accounting Estimates – Amendments to IAS 8,
applicable from January 1, 2023. The amendments clarified the
distinction between the changes in accounting estimates and changes
in accounting policies and the correction of errors. The amendment
clarified that the effects on an accounting estimate of a change in
an input or a change in a measurement technique are changes in
accounting estimates if they do not result from the correction of
prior period errors. The amendment did not have any material impact
on Suominen's consolidated financial statements.
- Amendments to IAS 12 – Deferred Tax Related to Assets and
Liabilities Arising from a Single Transaction, applicable from
January 1, 2023. The amendments are to be applied to transactions
that occur on or after the beginning of the earliest comparative
period presented in the financial statements.
The amendment narrowed the scope of the initial recognition
exception under IAS 12, so that it no longer applies to taxable and
deductible temporary differences. The amendment clarifies deferred
tax accounting for transactions and events, such as leases and
decommissioning obligations that lead to the initial recognition of
both an asset and a liability. The amendments require companies to
recognize a separate deferred tax asset and deferred tax liability
when the temporary differences arising on the initial recognition
of an asset and a liability are equal.
As in the most cases the deferred tax assets and liabilities
arising from recognition of leases can be offset with each other,
the amendment has not material effect on the consolidated statement
of financial position of Suominen. The amendment will, however,
change the disclosure information in the consolidated financial
statements related to the deferred taxes. The disclosure
information from the previous period has been restated.
IAS 12 Income Taxes applies to income taxes arising from tax
laws enacted or substantively enacted to implement the Pillar II
Rules published by the Organization for Economic Cooperation and
Development (OECD). International Tax Reform – Pillar II Model
Rules – Amendment to IAS 12, effective for reporting periods
beginning on or after January 1, 2023, introduced a mandatory
exception in IAS 12 from recognizing and disclosing deferred tax
assets and liabilities related to Pillar II income taxes. As the
Pillar II Rules apply to multinational groups with consolidated net
sales over EUR 750 million, Suominen is not subject to Pillar II
Rules.
Other new or amended standards, improvements, or annual
improvements applicable from January 1, 2023, or later were not
material for Suominen Group.
New and amended IFRS standards and IFRIC interpretations
published but mandatory from January 1, 2024, or
later:
- Amendments to IAS 1 – Classification of Liabilities as Current
or Non-current, applicable from January 1, 2024. The amendment
specifies the requirements for classifying liabilities as current
or non-current, by clarifying for example what is meant by a right
to defer settlement, that a right to defer must exist at the end of
the reporting period and that classification is unaffected by the
likelihood that an entity will exercise its deferral right. The
amendment will be applied retrospectively. The amendment has no
effect on the consolidated financial statements of Suominen.
Other new or amended standards, improvements or annual
improvements applicable from January 1, 2024, or later are not
material for Suominen Group.
STATEMENT OF FINANCIAL POSITION
|
EUR thousand |
31.12.2023 |
31.12.2022 |
|
Assets |
|
|
|
Non-current assets |
|
|
| Goodwill |
15,496 |
15,496 |
| Intangible
assets |
6,084 |
9,709 |
| Property, plant
and equipment |
112,727 |
116,195 |
| Right-of-use
assets |
11,109 |
11,902 |
| Equity
instruments |
421 |
421 |
| Other
non-current receivables |
83 |
93 |
|
Deferred tax assets |
2,048 |
693 |
|
Total non-current assets |
147,967 |
154,510 |
|
|
|
|
| Current
assets |
|
|
|
Inventories |
37,914 |
63,261 |
| Trade
receivables |
62,325 |
66,648 |
| Other current
receivables |
7,345 |
8,857 |
| Assets for
current tax |
2,128 |
662 |
|
Cash and cash equivalents |
58,755 |
49,508 |
|
Total current assets |
168,467 |
188,935 |
|
|
|
|
|
Total assets |
316,434 |
343,445 |
|
|
|
|
| Equity
and liabilities |
|
|
|
Equity |
|
|
| Share
capital |
11,860 |
11,860 |
| Share premium
account |
24,681 |
24,681 |
| Reserve for
invested unrestricted equity |
75,692 |
75,692 |
| Fair value and
other reserves |
316 |
265 |
| Exchange
differences |
111 |
2,678 |
|
Retained earnings |
12,251 |
30,740 |
|
Total equity attributable to owners of the
parent |
124,912 |
145,916 |
|
|
|
|
|
Liabilities |
|
|
|
Non-current liabilities |
|
|
| Deferred tax
liabilities |
9,362 |
11,730 |
| Liabilities
from defined benefit plans |
179 |
424 |
| Non-current
provisions |
564 |
1,950 |
| Non-current
lease liabilities |
9,711 |
11,215 |
|
Debentures |
49,449 |
49,295 |
| Total
non-current liabilities |
69,265 |
74,614 |
|
|
|
|
| Current
liabilities |
|
|
| Current
provisions |
3,870 |
− |
| Current lease
liabilities |
3,117 |
2,855 |
| Other current
interest-bearing liabilities |
40,000 |
40,000 |
| Liabilities for
current tax |
148 |
289 |
|
Trade payables and other current liabilities |
75,122 |
79,771 |
| Total current
liabilities |
122,257 |
122,915 |
|
|
|
|
|
Total liabilities |
191,522 |
197,529 |
|
|
|
|
|
Total equity and liabilities |
316,434 |
343,445 |
STATEMENT OF PROFIT OR LOSS
|
EUR thousand |
10-12/2023 |
10-12/2022 |
1-12/2023 |
1-12/2022 |
| Net
sales |
114,938 |
133,072 |
450,851 |
493,298 |
|
Cost of goods sold |
-106,491 |
-131,273 |
-428,122 |
-474,718 |
| Gross
profit |
8,447 |
1,800 |
22,729 |
18,579 |
| Other
operating income |
527 |
1,636 |
4,802 |
5,739 |
| Sales,
marketing and administration expenses |
-7,379 |
-7,381 |
-28,497 |
-28,932 |
| Research and
development expenses |
-855 |
-932 |
-3,851 |
-3,503 |
|
Other operating expenses |
-81 |
-112 |
-2,700 |
-841 |
|
Operating profit |
658 |
-4,989 |
-7,517 |
-8,958 |
|
Net financial expenses |
-2,005 |
-2,639 |
-5,987 |
-2,923 |
| Profit
before income taxes |
-1,347 |
-7,628 |
-13,504 |
-11,881 |
|
Income taxes |
-80 |
-1,183 |
719 |
-1,983 |
|
Profit for the period |
-1,426 |
-8,810 |
-12,786 |
-13,863 |
|
|
|
|
|
|
|
Earnings per share, EUR |
|
|
|
|
| Basic |
-0.02 |
-0.15 |
-0.22 |
-0.24 |
|
Diluted |
-0.02 |
-0.15 |
-0.22 |
-0.24 |
STATEMENT OF COMPREHENSIVE INCOME
|
EUR thousand |
10-12/
2023 |
10-12/
2022 |
1-12/
2023 |
1-12/
2022 |
|
|
|
|
|
|
| Profit
for the period |
-1,426 |
-8,810 |
-12,786 |
-13,863 |
|
|
|
|
|
|
| Other
comprehensive income: |
|
|
|
|
| Other
comprehensive income that will be subsequently reclassified to
profit or loss |
|
|
|
|
| Exchange
differences |
-4,631 |
-11,565 |
-2,991 |
8,873 |
|
Income taxes related to other comprehensive income |
506 |
1,023 |
424 |
-618 |
|
Total |
-4,124 |
-10,542 |
-2,567 |
8,255 |
| Other
comprehensive income that will not be subsequently reclassified to
profit or loss |
|
|
|
|
| Remeasurements
of defined benefit plans |
-5 |
137 |
-22 |
137 |
|
Income taxes related to other comprehensive income |
− |
-125 |
− |
-125 |
|
Total |
-5 |
12 |
-22 |
12 |
|
|
|
|
|
|
| Total
other comprehensive income |
-4,129 |
-10,530 |
-2,589 |
8,267 |
|
|
|
|
|
|
|
Total comprehensive income for the period |
-5,556 |
-19,340 |
-15,375 |
-5,596 |
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 |
− |
− |
− |
-2,567 |
| Total
comprehensive income |
− |
− |
− |
-2,567 |
| Distribution
of dividend |
− |
− |
− |
− |
| Share-based
payments |
− |
− |
− |
− |
| Conveyance of
treasury shares |
− |
− |
− |
− |
| Transfers |
− |
− |
− |
− |
|
Equity 31.12.2023 |
11,860 |
24,681 |
75,692 |
111 |
|
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 |
− |
-12,786 |
-12,786 |
|
Other comprehensive income |
− |
-22 |
-2,589 |
| Total
comprehensive income |
− |
-12,808 |
-15,375 |
| Distribution
of dividend |
− |
-5,767 |
-5,767 |
| Share-based
payments |
− |
88 |
88 |
| Conveyance of
treasury shares |
− |
49 |
49 |
| Transfers |
51 |
-51 |
− |
|
Equity 31.12.2023 |
316 |
12,251 |
124,912 |
|
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 |
STATEMENT OF CASH FLOWS
|
EUR thousand |
1-12/2023 |
1-12/2022 |
|
|
|
|
| Cash flow
from operations |
|
|
| Profit for the
period |
-12,786 |
-13,863 |
|
Total adjustments to profit for the period |
26,612 |
28,037 |
| Cash flow before
changes in net working capital |
13,826 |
14,174 |
| Change in net
working capital |
25,703 |
7,753 |
| Financial
items |
-4,954 |
-4,745 |
|
Income taxes |
-3,851 |
-3,156 |
| Cash flow
from operations |
30,724 |
14,027 |
|
|
|
|
| Cash flow
from investments |
|
|
| Investments in
property, plant and equipment and intangible assets |
-11,062 |
-9,764 |
|
Sales proceeds from property, plant and equipment and intangible
assets |
36 |
30 |
| Cash flow
from investments |
-11,027 |
-9,734 |
|
|
|
|
| Cash flow
from financing |
|
|
| Drawdown of
current interest-bearing liabilities |
240,000 |
40,000 |
| Repayment of
non-current interest-bearing liabilities |
− |
-85,000 |
| Repayment of
current interest-bearing liabilities |
-243,271 |
-3,003 |
| Acquisition of
treasury shares |
− |
-379 |
|
Dividends paid |
-5,767 |
-11,492 |
| Cash flow
from financing |
-9,038 |
-59,875 |
|
|
|
|
| Change in
cash and cash equivalents |
10,659 |
-55,582 |
|
|
|
|
| Cash and cash
equivalents at the beginning of the period |
49,508 |
101,357 |
| Effect of changes
in exchange rates |
-1,412 |
3,732 |
|
Change in cash and cash equivalents |
10,659 |
-55,582 |
|
Cash and cash equivalents at the end of the
period |
58,755 |
49,508 |
KEY RATIOS
|
|
10-12/
2023 |
10-12/
2022 |
1-12/
2023 |
1-12/
2022 |
| Change in net
sales, % * |
-13.6 |
15.1 |
-8.6 |
11.3 |
| Gross profit,
as percentage of net sales, % |
7.3 |
1.4 |
5.0 |
3.8 |
| Comparable
EBITDA, as percentage of net sales, % |
4.6 |
3.7 |
3.5 |
3.1 |
| EBITDA, as
percentage of net sales, % |
4.6 |
3.0 |
2.5 |
2.9 |
| Comparable
operating profit, as percentage of net sales, % |
0.6 |
-0.1 |
-0.6 |
-0.8 |
| Operating
profit, as percentage of net sales, % |
0.6 |
-3.7 |
-1.7 |
-1.8 |
| Net financial
items, as percentage of net sales, % |
-1.7 |
-2.0 |
-1.3 |
-0.6 |
| Profit before
income taxes, as percentage of net sales, % |
-1.2 |
-5.7 |
-3.0 |
-2.4 |
| Profit for the
period, as percentage of net sales, % |
-1.2 |
-6.6 |
-2.8 |
-2.8 |
| Gross capital
expenditure, EUR thousand |
2,368 |
2,333 |
11,223 |
9,713 |
| Depreciation,
amortization and impairment losses, EUR thousand |
4,605 |
8,992 |
18,680 |
23,245 |
| Return on
equity, rolling 12 months, % |
− |
− |
-9.6 |
-8.8 |
| Return on
invested capital, rolling 12 months, % |
− |
− |
-4.1 |
-4.2 |
| Equity ratio,
% |
− |
− |
39.5 |
42.5 |
| Gearing,
% |
− |
− |
35.3 |
37.4 |
| Average number
of personnel (FTE - full time equivalent) |
− |
− |
682 |
707 |
| Earnings per
share, EUR, basic |
-0.02 |
-0.15 |
-0.22 |
-0.24 |
| Earnings per
share, EUR, diluted |
-0.02 |
-0.15 |
-0.22 |
-0.24 |
| Cash flow from
operations per share, EUR |
0.23 |
0.27 |
0.53 |
0.24 |
| Equity per
share, EUR |
− |
− |
2.17 |
2.54 |
| Dividend per
share, EUR ** |
− |
− |
0.10 |
0.10 |
| Price per
earnings per share (P/E) ratio |
− |
− |
-12.85 |
-12.43 |
| Dividend
payout ratio, % |
− |
− |
-45.1 |
-41.4 |
| Dividend
yield, % |
− |
− |
3.51 |
3.33 |
| Number of
shares, end of period, excluding treasury shares |
− |
− |
57,692,459 |
57,480,727 |
| Share price,
end of period, EUR |
− |
− |
2.85 |
3.00 |
| Share price,
period low, EUR |
− |
− |
2.48 |
2.36 |
| Share price,
period high, EUR |
− |
− |
3.48 |
5.27 |
| Volume
weighted average price during the period, EUR |
− |
− |
2.85 |
3.57 |
| Market
capitalization, EUR million |
− |
− |
164.4 |
172.4 |
| Number of
traded shares during the period |
− |
− |
2,743,668 |
10,902,032 |
| Number of
traded shares during the period, % of average number of shares |
− |
− |
4.8 |
19.0 |
|
|
|
|
|
|
| * Compared
with the corresponding period in the previous year. |
|
|
| |
|
|
|
|
| ** 2023
Proposal of the Board |
|
|
|
|
| |
|
|
31.12.2023 |
31.12.2022 |
|
Interest-bearing net debt, EUR thousands |
|
|
|
|
| Non-current
interest-bearing liabilities, nominal value |
|
|
59,711 |
61,215 |
| Current
interest-bearing liabilities, nominal value |
|
|
43,117 |
42,855 |
|
Cash and cash equivalents |
|
|
-58,755 |
-49,508 |
|
Interest-bearing net debt |
|
|
44,074 |
54,562 |
CALCULATION OF KEY RATIOS
Key ratios per share
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).
Earnings per share
Basic earnings per share are calculated by dividing the net
result attributable to owners of the parent by the weighted
share-issue adjusted average number of shares outstanding during
the reporting period, excluding shares acquired by the Group and
held as treasury
shares.
When calculating diluted earnings per share the number of shares
is adjusted with the effects of the share-based incentive
plans.
|
EUR thousand |
|
31.12.2023 |
31.12.2022 |
|
Profit for the period |
|
-12,786 |
-13,863 |
|
|
|
|
|
| |
|
|
|
| Average
share-issue adjusted number of shares |
|
57,656,044 |
57,439,615 |
| Average diluted
share-issue adjusted number of shares excluding treasury
shares |
|
57,738,524 |
57,533,196 |
|
|
|
|
|
| Earnings
per share |
|
|
|
| |
|
|
|
|
EUR |
|
|
|
| Basic |
|
-0.22 |
-0.24 |
|
Diluted |
|
-0.22 |
-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 |
|
|
|
31.12.2023 |
31.12.2022 |
| Cash flow from
operations, EUR thousand |
|
30,724 |
14,027 |
|
Share-issue adjusted number of shares excluding treasury shares,
end of reporting period |
|
57,692,459 |
57,480,727 |
|
Cash flow from operations per share, EUR |
|
0.53 |
0.24 |
Equity per share
Equity per share
|
|
Total equity attributable to owners of the parent |
|
| = |
Share-issue adjusted
number of shares excluding treasury shares, end of reporting
period
|
| |
|
|
|
|
|
|
|
|
31.12.2023 |
31.12.2022 |
| Total equity
attributable to owners of the parent, EUR thousand |
|
124,912 |
145,916 |
|
Share-issue adjusted number of shares excluding treasury shares,
end of reporting period |
|
57,692,459 |
57,480,727 |
|
Equity per share, EUR |
|
2.17 |
2.54 |
Dividend payout ratio, %
Dividend payout ratio, %
|
|
Dividend per share x 100 |
| = |
Basic earnings
per share |
|
|
|
2023 |
2022 |
| Dividend and
return of capital per share x 100 |
|
10.00 |
10.00 |
|
Basic earnings per share, EUR |
-0,22 |
-0.24 |
|
Dividend payout ratio, % |
|
-45.1 |
-41.4 |
Dividend yield, %
Dividend yield, %
|
= |
Dividend per share x 100 |
| |
Share price at end of the period |
|
|
|
2023 |
2022 |
| Dividend and
return of capital per share x 100 |
|
10.00 |
10.00 |
|
Share price at end of the period, EUR |
2,85 |
3.00 |
|
Dividend yield, % |
|
3.51 |
3.33 |
Price per earnings per share (P/E)
Price
per earnings per share (P/E)
|
|
Share price at end of the period |
| = |
Basic earnings
per share |
|
|
|
2023 |
2022 |
| Share price at
end of the period, EUR |
|
2,85 |
3,00 |
|
Basic earnings per share, EUR |
-0,22 |
-0,24 |
|
Price per earnings per share (P/E) |
|
-12,85 |
-12,43 |
Market capitalization
| Market
capitalization |
= |
Number of
shares at the end of reporting period excluding treasury shares x
share price at the end of period |
|
|
|
2023 |
2022 |
| Number of
shares at the end of reporting period excluding treasury
shares |
|
57,692,459 |
57,480,727 |
|
Share price at end of the period, EUR |
2.85 |
3.00 |
|
Market capitalization, EUR million |
|
164.4 |
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 |
| |
|
|
|
|
|
|
2023 |
2022 |
| Number of
shares traded during the period |
|
2,743,668 |
10,902,032 |
|
Average number of shares excluding treasury shares |
57,656,044 |
57,439,615 |
|
Share turnover, % |
|
4.8 |
19.0 |
Alternative performance measures
Some of Suominen's key ratios 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 comparison
between the reporting periods.
Operating profit and comparable operating
profit
Operating profit, or earnings before interest and taxes (EBIT)
is an important measure of profitability as by ignoring income
taxes and financial items it focuses solely on the company's
ability to generate profit from operations. Operating profit is
presented as a separate line item in the consolidated statement of
profit or loss.
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. In 2023
and 2022, the items affecting comparability of result were
impairment losses of property, plant and equipment, right-of-use
assets and inventory, arising from the planned closure of the
production lines in Italy.
| 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 |
|
EUR thousand |
|
2023 |
2022 |
|
|
Operating profit |
|
-7,517 |
-8,958 |
|
| +
Dismissal costs affecting comparability |
|
2,207 |
− |
|
| +
Restoration costs affecting comparability |
|
2,344 |
− |
|
| +
Other costs affecting comparability |
|
116 |
− |
|
| +
Impairment losses of property, plant and equipment and intangible
assets, 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 |
|
-2,750 |
-4,163 |
|
EBITDA and comparable EBITDA
EBITDA is an important measure that focuses on the operating
performance excluding the effect of depreciation and amortization,
financial items and income taxes, in other words what is the margin
on net sales after deducting operating expenses.
| EBITDA |
= |
EBIT +
depreciation, amortization and impairment losses |
| Comparable
EBITDA |
= |
EBIT +
depreciation, amortization and impairment losses, adjusted with
items affecting comparability |
|
EUR thousand |
|
2023 |
2022 |
| Operating
profit |
|
-7,517 |
-8,958 |
|
+ Depreciation, amortization and impairment losses |
18,680 |
23,245 |
|
EBITDA |
|
11,163 |
14,287 |
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
11,163 |
14,287 |
| + Dismissal costs
affecting comparability |
|
2,207 |
− |
| + Restoration
costs affecting comparability |
|
2,344 |
− |
| + Other costs
affecting comparability |
|
116 |
− |
|
+ Impairment losses of inventories, affecting comparability of
result |
-16 |
971 |
|
Comparable EBITDA |
|
15,813 |
15,257 |
Gross capital expenditure
Suominen considers gross capital expenditure as a relevant
measure in order to understand for example how the Group maintains
and renews its production machinery and facilities. Gross capital
expenditure includes also capitalized borrowing costs and
capitalized cash flow hedges. Gross capital expenditure (gross
investments) does not include increases in right-of-use assets.
|
EUR thousand |
|
2023 |
2022 |
| Increases in
intangible assets |
|
169 |
438 |
|
Increases in property, plant and equipment |
11,054 |
9,275 |
|
Gross capital expenditure |
|
11,223 |
9,713 |
Interest-bearing net debt
Suominen considers interest-bearing net debt to be an important
measure for investors to be able to understand the Group’s
indebtedness. 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 |
|
2023 |
2022 |
|
Interest-bearing liabilities |
|
102,278 |
103,365 |
| Tender and
issuance costs of the debentures |
|
551 |
705 |
|
Cash and cash equivalents |
-58,755 |
-49,508 |
|
Interest-bearing net debt |
|
44,074 |
54,562 |
|
|
|
|
|
|
Interest-bearing liabilities |
|
102,278 |
103,365 |
|
Tender and issuance costs of the debentures |
|
551 |
705 |
|
Nominal value of interest-bearing liabilities |
|
102,828 |
104,069 |
Return on equity (ROE), %
The return on equity is one of the most important profitability
ratios used by owners and investors. The ratio measures the ability
of a company to generate profits from its shareholders' investments
in the company and it defines the yield on the company's equity
during the reporting period.
Return on equity (ROE), %
|
=
|
Profit for the reporting period (rolling 12 months) x 100 |
| Total equity
attributable to owners of the parent (quarterly average) |
|
EUR thousand |
|
2023 |
2022 |
| Profit for the
reporting period (rolling 12 months) |
|
-12,786 |
-13,863 |
|
|
|
|
|
| Total equity
attributable to owners of the parent December 31, 2022 / 2021 |
|
145,916 |
163,199 |
| Total equity
attributable to owners of the parent March 31, 2023 / 2022 |
|
140,131 |
153,504 |
| Total equity
attributable to owners of the parent June 30, 2023 / 2022 |
|
127,236 |
158,098 |
| Total equity
attributable to owners of the parent September 30, 2023 / 2022 |
|
130,283 |
165,188 |
|
Total equity attributable to owners of the parent December 31, 2023
/ 2022 |
|
124,912 |
145,916 |
| Average |
|
133,695 |
157,181 |
|
|
|
|
|
|
Return on equity (ROE), % |
|
-9.6 |
-8.8 |
Invested capital
| Invested
capital |
= |
Total equity +
interest-bearing liabilities - cash and cash equivalents |
|
EUR thousand |
|
2023 |
2022 |
| Total equity
attributable to owners of the parent |
|
124,912 |
145,916 |
|
Interest-bearing liabilities |
|
102,278 |
103,365 |
| Cash and cash
equivalents |
|
-58,755 |
-49,508 |
|
Invested capital |
|
168,435 |
199,773 |
Return on invested capital (ROI), %
Return on invested capital is one of the most important key
ratios. It measures the relative profitability of the company, i.e.
the yield on the capital invested in the company.
Return on invested capital (ROI), %
|
=
|
Operating profit (rolling 12 months) x 100 |
| Invested
capital, quarterly average |
|
EUR thousand |
|
2023 |
2022 |
| Operating
profit (rolling 12 months) |
|
-7,517 |
-8,958 |
|
|
|
|
|
| Invested
capital December 31, 2022 / 2021 |
|
199,773 |
210,975 |
| Invested
capital March 31, 2023 / 2022 |
|
194,290 |
205,806 |
| Invested
capital June 30, 2023 / 2022 |
|
182,005 |
210,561 |
| Invested
capital September 30, 2023 / 2022 |
|
181,914 |
230,264 |
|
Invested capital December 31, 2023 / 2022 |
|
168,435 |
199,773 |
| Average |
|
185,283 |
211,476 |
|
|
|
|
|
|
Return on invested capital (ROI), % |
|
-4.1 |
-4.2 |
Equity ratio, %
Equity ratio is an important key ratio as it measures the
solidity of the company, the company's tolerance for losses and
ability to cover its long-term commitments. The performance measure
shows how much of the company's assets are financed with equity.
The equity creates a buffer against potential losses, and equity
ratio represents the level of this buffer.
Equity ratio, %
|
=
|
Total equity attributable to owners of the parent x 100 |
| Total assets -
advances received |
| |
|
|
|
EUR thousand |
|
2023 |
2022 |
| Total equity
attributable to owners of the parent |
|
124,912 |
145,916 |
|
|
|
|
|
| Total
assets |
|
316,434 |
343,445 |
|
Advances received |
|
-104 |
-74 |
|
|
|
316,330 |
343,371 |
|
|
|
|
|
|
Equity ratio, % |
|
39.5 |
42.5 |
Gearing, %
Gearing represents the ratio between the equity invested by the
owners of the company and the interest-bearing liabilities borrowed
from financiers. Gearing is an important performance measure in
assessing the financial position of a company. A high gearing is a
risk factor which might limit the possibilities for growth of a
company and narrow its financial freedom.
Gearing, %
|
=
|
Interest-bearing net debt x 100 |
| Total equity
attributable to owners of the parent |
|
EUR thousand |
|
2023 |
2022 |
|
Interest-bearing net debt |
|
44,074 |
54,562 |
|
Total equity attributable to owners of the parent |
|
124,912 |
145,916 |
|
Gearing, % |
|
35.3 |
37.4 |
NET SALES BY GEOGRAPHICAL MARKET AREA
|
EUR thousand |
1-12/2023 |
1-12/2022 |
| Finland |
3,240 |
3,522 |
| Rest of
Europe |
155,759 |
193,673 |
| North and South
America |
291,108 |
294,367 |
|
Rest of the world |
743 |
1,736 |
|
Total |
450,851 |
493,298 |
QUARTERLY DEVELOPMENT
| |
2023 |
2022 |
|
EUR thousand |
10-12 |
7-9 |
4-6 |
1-3 |
10-12 |
7-9 |
4-6 |
1-3 |
|
Net sales |
114,938 |
106,447 |
112,673 |
116,793 |
133,072 |
131,937 |
118,019 |
110,269 |
|
Comparable EBITDA |
5,275 |
5,200 |
2,690 |
2,648 |
4,973 |
5,124 |
1,863 |
3,298 |
|
as % of net sales |
4.6 |
4.9 |
2.4 |
2.3 |
3.7 |
3.9 |
1.6 |
3.0 |
|
Items affecting comparability |
-11 |
-26 |
-4,613 |
− |
-971 |
− |
− |
− |
|
EBITDA |
5,263 |
5,174 |
-1,922 |
2,648 |
4,003 |
5,124 |
1,863 |
3,298 |
|
as % of net sales |
4.6 |
4.9 |
-1.7 |
2.3 |
3.0 |
3.9 |
1.6 |
3.0 |
|
|
|
|
|
|
|
|
|
|
|
Comparable operating profit |
670 |
666 |
-2,102 |
-1,985 |
-194 |
202 |
-2,903 |
-1,268 |
|
as % of net sales |
0.6 |
0.6 |
-1.9 |
-1.7 |
-0.1 |
0.2 |
-2.5 |
-1.2 |
|
|
|
|
|
|
|
|
|
|
|
Items affecting comparability |
-11 |
-26 |
-4,621 |
-108 |
-4,795 |
− |
− |
− |
|
Operating profit |
658 |
640 |
-6,722 |
-2,093 |
-4,989 |
202 |
-2,903 |
-1,268 |
|
as % of net sales |
0.6 |
0.6 |
-6.0 |
-1.8 |
-3.7 |
0.2 |
-2.5 |
-1.2 |
|
Net financial items |
-2,005 |
-1,152 |
-1,293 |
-1,537 |
-2,639 |
-78 |
723 |
-930 |
|
Profit before income taxes |
-1,347 |
-512 |
-8,016 |
-3,630 |
-7,628 |
125 |
-2,180 |
-2,198 |
|
as % of net sales |
-1.2 |
-0.5 |
-7.1 |
-3.1 |
-5.7 |
0.1 |
-1.8 |
-2.0 |
QUARTERLY SALES BY BUSINESS AREA
|
|
2023 |
2022 |
|
EUR thousand |
10-12 |
7-9 |
4-6 |
1-3 |
10-12 |
7-9 |
4-6 |
1-3 |
| Americas |
72,336 |
70,865 |
69,770 |
75,044 |
81,714 |
80,308 |
64,226 |
61,726 |
| Europe |
42,635 |
35,553 |
42,896 |
41,756 |
51,401 |
51,701 |
53,819 |
48,530 |
| Unallocated
exchange differences and eliminations |
-33 |
29 |
7 |
-8 |
-43 |
-72 |
-26 |
12 |
|
Total |
114,938 |
106,447 |
112,673 |
116,793 |
133,072 |
131,937 |
118,019 |
110,269 |
INFORMATION ON RELATED PARTIES
Suominen Group's related parties include the parent of the Group
(Suominen Corporation) and subsidiaries. In addition, 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.
Management remuneration
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.
The annual and meeting fees paid to the Board of Directors of
Suominen Corporation in 2023 were in total EUR 289 thousand, of
which EUR 61 thousand were paid in shares.
Salaries paid or accrued, including fringe benefits, to
President & CEO and other members of the Executive Team during
January-December 2023 amounted to EUR 2,147 thousand, of which EUR
548 thousand was the value of the vested share-based payments.
Obligatory pension payments and accruals were EUR 207 thousand and
voluntary pension payments and accruals EUR 60 thousand. The
accrual, excluding social costs, based on the non-vested
share-based incentive plans in accordance with IFRS standards was
EUR 414 thousand for the related parties for the reporting period.
The amounts include severance payments.
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 548 thousand.
Management share ownership
Number of shares
| |
|
|
|
Board of Directors |
December 31, 2023 |
December 31, 2022 |
| Jaakko Eskola,
Chair of the Board of Directors |
26,166 |
19,894 |
| Andreas
Ahlström, Deputy Chair of the Board |
26,792 |
23,836 |
| Aaron
Barsness |
5,459 |
2,503 |
| Björn
Borgman |
24,902 |
21,946 |
| Nina
Linander |
27,631 |
23,778 |
| Laura Remes
from April 3, 2023 |
2,956 |
− |
| Laura
Raitio |
− |
23,836 |
|
Total |
113,906 |
115,793 |
| Total % of
shares and votes |
0.20% |
0.20% |
|
|
|
|
|
Executive Team |
|
|
| Tommi
Björnman |
30,000 |
− |
| Jonni
Friman |
− |
− |
| Markku
Koivisto |
53,172 |
36,482 |
| Klaus
Korhonen |
52,630 |
36,592 |
| Thomas
Olsen |
− |
− |
| Mimoun
Saïm |
92,923 |
65,502 |
| Janne
Silonsaari |
− |
− |
| Lynda
Kelly |
− |
57,073 |
| Toni
Tamminen |
− |
19,000 |
|
Total |
228,725 |
214,649 |
| Total % of
shares and votes |
0.39% |
0.37% |
THE LARGEST SHAREHOLDERS ON DECEMBER 31,
2023
| |
|
|
|
|
|
Shareholder |
Number of shares |
% of shares and votes |
| 1. |
Ahlström
Capital B.V. |
13,995,013 |
24.0% |
| 2. |
Etola Group
Oy |
7,414,000 |
12.7% |
| 3. |
Oy Etra Invest
Ab |
7,000,000 |
12.0% |
| 4. |
OP Life
Assurance Company Ltd |
4,128,708 |
7.1% |
| 5. |
Nordea Nordic
Small Cap Fund |
3,435,147 |
5.9% |
| 6. |
Mandatum Life
Insurance Company |
2,908,287 |
5.0% |
| 7. |
Ilmarinen
Mutual Pension Insurance Company |
1,912,000 |
3.3% |
| 8. |
Varma Mutual
Pension Insurance Company |
1,689,751 |
2.9% |
| 9. |
Oy H. Kuningas
& Co. AB |
1,400,000 |
2.4% |
| 10. |
Nordea Life
Assurance Finland Ltd |
1,379,866 |
2.4% |
| 11. |
Maijala
Investment Oy |
1,176,232 |
2.0% |
| 12. |
Skandinaviska
Enskilda Banken AB (publ.) |
1,037,686 |
1.8% |
| 13. |
Laakkosen
Arvopaperi Oy |
900,000 |
1.5% |
| 14. |
Juhani
Maijala |
794,026 |
1.4% |
|
15. |
Pension Insurance Company Elo |
689,430 |
1.2% |
| |
15 largest
total |
49,860,146 |
85.6% |
| |
Other
shareholders |
6,564,969 |
11.3% |
| |
Nominee
registered |
1,267,344 |
2.2% |
| |
Treasury
shares |
566,760 |
1.0% |
|
|
Total |
58,259,219 |
100.0% |
CHANGES IN PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE
ASSETS AND RIGHT-OF-USE ASSETS
| |
31.12.2023 |
|
31.12.2022 |
|
EUR thousand |
Property, plant and equipment |
Intangible assets |
Right-of-use assets |
Property, plant and equipment |
Intangible assets |
Right-of-use assets |
| Carrying amount
at the beginning of the period |
116,195 |
9,709 |
11,902 |
115,478 |
13,176 |
15,741 |
| Capital
expenditure and increases |
11,054 |
169 |
2,410 |
9,275 |
438 |
705 |
| Disposals and
decreases |
0 |
− |
-148 |
− |
− |
-27 |
| Depreciation,
amortization and impairment losses |
-12,012 |
-3,792 |
-2,876 |
-14,393 |
-3,869 |
-4,983 |
|
Exchange differences and other changes |
-2,510 |
-2 |
-180 |
5,835 |
-36 |
466 |
|
Carrying amount at the end of the period |
112,727 |
6,084 |
11,109 |
116,195 |
9,709 |
11,902 |
Intangible assets excluding goodwill.
CONTINGENT LIABILITIES
|
Guarantees and other commitments |
2023 |
2022 |
| On own
commitments |
2,440 |
3,102 |
| Other own
commitments |
16,774 |
16,755 |
|
Total |
19,214 |
19,857 |
|
|
|
|
|
Other contingencies |
|
|
|
Contractual commitments to acquire property, plant and
equipment |
1,368 |
2,641 |
|
Commitments to leases not yet commenced |
1,485 |
429 |
|
Total |
2,853 |
3,069 |
Rental obligations |
|
|
| Within one
year |
32 |
51 |
| Between 1-5
years |
39 |
47 |
| After 5
years |
− |
− |
|
Total |
71 |
98 |
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 |
− |
62,375 |
− |
62,375 |
62,375 |
|
| Interest and
other financial receivables |
− |
201 |
− |
201 |
201 |
|
|
Cash and cash equivalents |
− |
58,755 |
− |
58,755 |
58,755 |
|
|
Total 31.12.2023 |
− |
121,281 |
421 |
121,702 |
121,702 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
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 for financial assets for
2023 are the same as those used in consolidated financial
statements for 2022.
CHANGES IN INTEREST-BEARING LIABILITIES
|
EUR thousand |
1-12/2023 |
1-12/2022 |
|
Total interest-bearing liabilities at the beginning of the
period |
103,365 |
149,134 |
|
Current liabilities at the beginning of the
period |
42,855 |
86,823 |
| Repayment of
current liabilities, cash flow items |
-243,271 |
-88,003 |
| Drawdown of
current liabilities, cash flow items |
240,000 |
40,000 |
| Increases in
current liabilities, non-cash flow items |
782 |
260 |
| Decreases of
current liabilities, non-cash flow items |
-82 |
-15 |
|
Reclassification from non-current liabilities |
2,878 |
2,770 |
| Periodization
of debentures to amortized cost, non-cash flow items |
− |
938 |
|
Exchange rate difference, non-cash flow item |
-44 |
83 |
|
Current liabilities at the end of the period |
43,117 |
42,855 |
|
|
|
|
|
Non-current liabilities at the beginning of the
period |
11,215 |
13,167 |
| Increases in
non-current liabilities, non-cash flow items |
1,629 |
445 |
| Decreases of
non-current liabilities, non-cash flow items |
-67 |
-12 |
|
Reclassification to current liabilities |
-2,878 |
-2,770 |
|
Exchange rate difference, non-cash flow item |
-188 |
385 |
|
Non-current liabilities at the end of the
period |
9,711 |
11,215 |
|
|
|
|
|
Non-current debentures at the beginning of the
period |
49,295 |
49,144 |
| Periodization
of debentures to amortized cost, non-cash flow items |
154 |
151 |
|
Non-current debentures at the end of the period |
49,449 |
49,295 |
|
Total interest-bearing liabilities at the end of the
period |
102,278 |
103,365 |
FINANCIAL LIABILITIES
| |
31.12.2023 |
31.12.2022 |
|
|
|
|
|
|
|
|
|
EUR thousand |
Carrying amount |
Fair value |
Nominal value |
Carrying amount |
Fair value |
Nominal value |
|
Non-current financial liabilities |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Debentures |
49,449 |
42,080 |
50,000 |
49,295 |
39,425 |
50,000 |
|
Lease liabilities |
9,711 |
9,711 |
9,711 |
11,215 |
11,215 |
11,215 |
| Total
non-current financial liabilities |
59,160 |
51,791 |
59,711 |
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 |
3,117 |
3,117 |
3,117 |
2,855 |
2,855 |
2,855 |
| Interest
accruals |
626 |
626 |
626 |
734 |
734 |
734 |
| Other current
liabilities |
508 |
508 |
508 |
353 |
353 |
353 |
|
Trade payables |
60,562 |
60,562 |
60,562 |
64,565 |
64,565 |
64,565 |
| Total current
financial liabilities |
104,814 |
104,814 |
104,814 |
108,506 |
108,506 |
108,506 |
|
|
|
|
|
|
|
|
|
Total |
163,974 |
156,605 |
164,525 |
169,016 |
159,146 |
169,721 |
The financial liabilities in the table above are measured at
amortized cost.
Principles in estimating fair value for financial liabilities
for 2023 are the same as those used in consolidated financial
statements for 2022.
FAIR VALUE MEASUREMENT HIERARCHY
EUR thousand
| Fair
value hierarchy in 2023 |
|
|
|
|
Financial assets at fair value |
Level 1 |
Level 2 |
Level 3 |
| Equity
instruments |
− |
− |
421 |
|
Total in 2022 |
− |
− |
421 |
|
|
|
|
|
| Fair
value hierarchy in 2022 |
|
|
|
|
Financial assets at fair value |
Level 1 |
Level 2 |
Level 3 |
| Equity
instruments |
− |
− |
421 |
|
Total in 2022 |
− |
− |
421 |
|
|
|
|
|
Principles in estimating fair value for financial assets for
2023 are the same as those used in consolidated financial
statements for 2022.
SUOMINEN CORPORATION
Board of Directors
For further 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 2023 were EUR 450.9 million and
we have nearly 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
- Suominen Corporation Financial Statement Release 2023
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