Suominen as an investment

Suominen creates shareholder value through implementing its In the Lead strategy, which principally aims at increasing the share of products with higher added value in our portfolio. Read more about Suominen's strategy.

Five reasons to invest in Suominen

 

1. Our production plants are located on three continents, in key market areas close to our customers

Suominen is focused on developing and manufacturing nonwovens as roll goods.

Suominen is a globally significant supplier of nonwovens and the world’s largest manufacturer of nonwovens for wiping products. Suominen has four nonwovens plants in Americas and four in Europe. We are capable of serving our global clientele effectively while also offering our products flexibly at the local level.

2. We operate in growing markets

Demand for nonwovens is increasing in all market areas, including Europe. A number of global megatrends are accelerating the growth in demand:

Demographic factors

  • Population growth directly affects demand for commodities, including demand for nonwovens.
  • In developed countries the aging of the population increases demand for health care products and hygiene products.
  • Growth of the global middle class – a larger proportion of the world’s population has money to spend on products that increase comfort and hygiene and facilitate everyday life, from feminine hygiene products and diapers to disposable personal care wipes.

Lifestyle factors

  • According to forecasts, the amount spent by consumers on health and well-being will grow significantly. This will also boost demand for many nonwovens, such as health care products and cosmetics and hygiene products.
  • Consumers are increasingly looking for more and more products and services to ease their day-to-day lives and save time. Many products manufactured from nonwovens, for example, disposable cloths used for cleaning homes, meet this demand. This trend focusing on speed and ease affects several other sectors as well, among them banking services and the food industry.

3. Our customer relationships are often global and long-term – more than 10 years on average

Our customer base includes

  • Manufacturers of consumer brands, many of them global operators
  • Manufacturers of globally operating private label products
  • Manufacturers of medical and hygiene products
  • Regional further processors

Our customer relationships last, on average, more than ten years and are typically based on 2–3-year-long framework agreements. Ten of our largest customers make up around half of Suominen’s net sales. Key purchasing criteria include consistent quality, continuity, proximity (logistical benefits, flexibility of cooperation).

4. We have a clear vision and an ambitious strategy to achieve it – with a promising track record

After the divestments of wet wipes business (2013) and flexible packaging business (2014), Suominen is focused purely on nonwovens.

Our strategy is well-defined and targets growth, product leadership and market-driven way of operating. If Suominen is succesful in the execution of the strategy, the company's net sales raises to the vicinity of 500 million euros by the end of 2017.

In the previous strategy period, Suominen managed to achieve the results it was aiming at. For example, the strategic Summit program was aimed at integrating the acquired Ahlstrom business with Suominen and at achieving cost savings. The program created more than EUR 10 million in permanent savings in the cost structure.

5. We have restored our ability to pay dividends

Suominen’s policy is to distribute approximately 30% of its profit for the period in annual dividends. In assessing its proposal for the payment of dividends, the company’s Board of Directors will also consider Suominen’s future investment needs and the solidity of its financial position.

 

Financial targets

 

The Board of Directors has established the following medium term financial targets for Suominen:

Profitability

Suominen aims to clearly improve its relative profitability. The target level of the company’s return on investment (ROI) is to be above 12%.

Capital structure

Suominen aims to have a solid capital structure with a gearing ratio principally between 40% and 80%.

Growth

Suominen aims to increase its net sales at a rate that exceeds the average growth rate of the industry (approximately 3%).

When calculating return on investment and gearing ratios, the company applies the accounting principles and formulas used in the Financial Statements.

 

To learn more about Suominen's financial figures, please utilize the Key figures tool available on this website or view the company's financial reports.

Outlook

 

Outlook for 2017

31 January 2017
Suominen expects that for the full year 2017, its net sales will improve from year 2016. Also the comparable operating profit is estimated to improve from year 2016, provided that the new production line at the Bethune plant will be started up as planned. In 2016, Suominen’s net sales amounted to EUR 416.9 million and comparable operating profit to EUR 25.6 million.

Outlook for 2016

On 27 October 2016, Suominen repeated its previous estimate that it expects that for the full year 2016, its net sales and comparable operating profit will not reach the level of year 2015.

On 20 September 2016, Suominen revised its outlook and announced that it expects that for the full year 2016, its net sales and comparable operating profit will not reach the level of year 2015.

On 9 August 2016, Suominen repeated its previous estimate that for the full year 2016 the company expects its net sales and comparable operating profit to improve from year 2015. In 2015, Suominen’s net sales amounted to EUR 444.0 million and comparable operating profit to EUR 31.2 million. The calculation of comparable operating profit equals to the calculation of previously reported operating profit excluding non-recurring items.

On 28 April 2016, Suominen repeated it previous estimate that for the full year 2016, its net sales and operating profit excluding non-recurring items will improve from year 2015. In 2015, Suominen’s net sales amounted to EUR 444.0 million and operating profit excluding non-recurring items to EUR 31.2 million. 

On 29 January 2016, Suominen announced that it expects that for the full year 2016, its net sales and operating profit excluding non-recurring items will improve from year 2015. In 2015, Suominen’s net sales amounted to EUR 444.0 million and operating profit excluding non-recurring items to EUR 31.2 million. The non-recurring items are explained in the disclosures of this Financial Statement release.

Outlook for 2015

On 26 October 2015, Suominen specifies its guidance regarding operating profit for 2015. The company expects that for the full year 2015, operating profit from continuing operations excluding non-recurring items will improve markedly from year 2014. Previously, Suominen estimated that for the full year 2015, its operating profit excluding non-recurring items from continuing operations would improve from year 2014. For net sales, Suominen repeats its previous estimate, disclosed on 17 July 2015, that for the full year 2015 the company expects its net sales for continuing operations to improve from year 2014. Suominen’s net sales of the continuing operations in 2014 amounted to EUR 401.8 million and operating profit excluding non-recurring items was EUR 26.9 million.

On 17 July 2015, Suominen repeats its previous estimate, disclosed on 27 April 2015, that for the full year 2015 the company expects its net sales and operating profit excluding non-recurring items to improve from year 2014. In 2014, Suominen’s net sales amounted to EUR 401.8 million and operating profit excluding nonrecurring items to EUR 26.9 million.

On 27 April 2015,  Suominen repeats its previous estimate, disclosed on 30 January 2015, that for the full year 2015 the company expects its net sales and operating profit excluding non-recurring items to improve from year 2014. In 2014, Suominen’s net sales amounted to EUR 401.8 million and operating profit excluding non-recurring items to EUR 26.9 million. Suominen repeats its previous estimate, disclosed on 30 January 2015, that for the full year 2015 the company expects its net sales and operating profit excluding non-recurring items to improve from year 2014. In 2014, Suominen’s net sales amounted to EUR 401.8 million and operating profit excluding non-recurring items to EUR 26.9 million. 

On 30 January 2015, Suominen announced its outlook for 2015. Suominen expects that for the full year 2015, its net sales and operating profit excluding non-recurring items will improve from year 2014. In 2014, Suominen’s net sales amounted to EUR 401.8 million and operating profit excluding non-recurring items to EUR 26.9 million. 

Outlook for 2014

On 24 October 2014,  Suominen updates its outlook statement regarding operating profit. The company expects that for the full year 2014, its operating profit excluding non-recurring items from continuing operations will increase to the vicinity of EUR 25 million. Previously Suominen estimated that its operating profit excluding non-recurring items from continuing operations will improve from year 2013 (MEUR 19.4; Nonwovens segment and unallocated items). Concerning net sales, Suominen repeats its estimate announced on 18 July 2014, according to which the company expects that for the full year 2014, its net sales of the continuing operations will improve from year 2013 (MEUR 373.7)

On 18 July 2014, Suominen repeats its estimate, announced on 11 July 2014, according to which Suominen expects that for the full year 2014, its net sales and operating profit excluding non-recurring items from continuing operations will improve from year 2013. Suominen’s net sales of the continuing operations (Nonwovens segment and unallocated items) in 2013 amounted to MEUR 373.7 and operating profit excluding non-recurring items was MEUR 19.4 (revised). Earlier, the comparison figures used in the outlook statement were, respectively, MEUR 433.1 and MEUR 18.3, as reported in the Financial Statements of 2013.

On 11 July 2014, due to the divestment of Flexibles business area, Suominen restated the comparison figures in its outlook statement to reflect the continuing business of the Group. Suominen expects that for the full year 2014, its net sales and operating profit excluding non-recurring items from continuing operations will improve from year 2013. Suominen’s net sales of the continuing operations in 2013 amounted to MEUR 373.7 and operating profit excluding non-recurring items was MEUR 19.0. Both figures refer to continuing operations and include Nonwovens segment and unallocated items.

Earlier, the comparison figures used in the outlook statement were, respectively, MEUR 433.1 and MEUR 18.3, as reported in the Financial Statements of 2013.

On 29 April 2014, Suominen repeated its previous estimate, disclosed on 10 February 2014, that its net sales and operating profit excluding non-recurring items for the full year 2014 improve from year 2013. In 2013, the net sales were EUR 433.1 million and the reported operating profit excluding non-recurring items EUR 18.3 million (continuing operations).

On 10 Febrary 2014, based on the closing of the acquisition of Paulínia plant in Brazil from Ahlstrom Corporation, Suominen raised its net sales outlook for 2014. Suominen estimates that its net sales and operating profit excluding non-recurring items for the full year 2014 improve from year 2013. In 2013, Suominen’s net sales were EUR 433.1 million and operating profit excluding non-recurring items was EUR 18.3 million (continuing operations).

On 30 January 2014,  Suominen announced that with the current group structure, Suominen expects its group net sales for the full year 2014 to remain at the level of 2013. Operating profit excluding non-recurring items is expected to improve from year 2013. In 2013, Suominen’s net sales were EUR 433.1 million and operating profit excluding non-recurring items was EUR 18.3 million (continuing operations)

Outlook for 2013

On 23 October 2013, Suominen repeated its previous estimate, announced on 17 July 2013, according to which Suominen expects its net sales of the continuing operations for the full year 2013 to remain at or slightly exceed the level of 2012. Operating profit excluding non-recurring items is expected to improve from year 2012.

In 2012, Suominen’s net sales from continuing operations were EUR 410.4 million. Group operating profit excluding non-recurring items, as reported in the Financial Statements of 2012, was EUR 13.7 million.

Analysts

 

The analysts listed below follow the development of Suominen. The list may be incomplete. Suominen assumes no responsibility for the analysts’ assessments.

Evli Bank

Markku Järvinen
+358 9 4766 9635
markku.jarvinen@evli.com

Inderes

Antti Viljakainen
+358 44 591 2216
antti.viljakainen@inderes.com