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Suominen Corporation’s Half-Year Financial Report for 1 January–30 June 2019: Operating profit improved in the first half of the year despite a slight decrease in net sales

Suominen Corporation’s Half-Year Financial Report on August 7, 2019 at 1:00 pm (EEST)

 

Suominen Corporation’s Half-Year Financial Report for 1 January–30 June 2019:
Operating profit improved in the first half of the year despite a slight decrease in net sales

 

KEY FIGURES

 

4-6/

4-6/

1-6/

1-6/

1-12/

 

2019

2018

2019

2018

2018

Net sales, EUR million

103.8

110.0

213.6

216.6

431.1

Comparable operating profit, EUR million

   2.7

2.9

5.6

4.5

4.6

Operating profit, EUR million

   2.7

2.9

5.6

4.5

4.6

Profit for the period, EUR million

  0.4

1.8

1.5

1.4

-1.7

Earnings per share, basic, EUR

0.01

0.03

0.03

0.03

-0.03

Earnings per share, diluted, EUR

0.01

0.03

0.03

0.03

-0.03

Cash flow from operations per share, EUR

0.16

0.19

0.12

0.28

0.56

Return on invested capital, rolling 12 months, % 

2.7

4.1

2.3

Gearing, % *

65.0

59.6

65.9*

*restated

In this financial report, figures shown in brackets refer to the comparison period last year if not otherwise stated.

April–June 2019 in brief:

- Net sales decreased by 6% and amounted to EUR 103.8 million (110.0). The impact of EUR/USD exchange rate changes increased the net sales by EUR 3.4 million.
- Operating profit decreased by 9% to EUR 2.7 million (2.9).

- Cash flow from operations was EUR 9.1 million (10.8). In the comparison period the cash flow was impacted by tax refunds of EUR 7.0 million in the US.

 

January–June 2019 in brief:

- Net sales decreased by 1% and amounted to EUR 213.6 million (216.6). The impact of EUR/USD exchange rate changes increased the net sales by EUR 8.1 million.
- Operating profit increased by 26% to EUR 5.6 million (4.5).

- Cash flow from operations was EUR 6.7 million (16.0). The decline was mainly due to tax refunds in the comparison period and change in net working capital.

 

 

 

Outlook for 2019 unchanged

Suominen reiterates the outlook presented on January 31, 2019, in which Suominen expects that in 2019, its net sales will be at the level of 2018 (EUR 431.1 million) and comparable operating profit, excluding the positive effect of applying IFRS 16 Leases, will improve from 2018 (EUR 4.6 million).

 

Petri Helsky, President & CEO:

“Suominen’s net sales were EUR 103.8 million in the second quarter. Sales volumes decreased from the comparison period but sales prices improved as a result of our focus on value generation over volume. The strengthening of the USD compared to EUR increased our net sales by EUR 3.4 million in the second quarter. Our operating profit declined to EUR 2.7 (2.9) million.

 

The second quarter continued on the same level as the first quarter of the year. When looking at the first half of the year our net sales decreased slightly but our operating profit increased.

 

We continued our systematic development work on our new manufacturing line in Bethune, SC, US during the second quarter. We conducted several trials and customer qualification runs, which caused some additional costs. We continue to develop the new line in Bethune as part of our regular business operations.

 

From the beginning of July our new business areas are Europe and Americas. I am sure that this new organization enables us to be more efficient, focused and agile, which will support our work to improve Suominen’s profitability going forward. Due to the reorganizing of the business areas the second quarter includes EUR 0.4 million restructuring costs.

 

The Group-wide renewal of ICT systems was concluded with successful implementations at the Paulínia, Brazil and Bethune, USA, plants during the second quarter. All our eight plants are now operating with the renewed systems, allowing us to further increase our efficiency, productivity and transparency.”

 

NET SALES

AprilJune 2019

In April–June 2019, Suominen’s net sales decreased by 6% from the comparison period to EUR 103.8 million (110.0). The strengthening of the USD compared to EUR increased the net sales by EUR 3.4 million. 

Until June 30, Suominen´s business areas were Convenience and Care. Convenience business area supplied nonwovens as roll goods for a wide range of wiping applications. Care business area supplied nonwovens for hygiene products and medical applications. Net sales of the Convenience business area amounted to EUR 96.1 million (99.9) and net sales of the Care business area to EUR 7.7 million (10.0).

 

Since July 1, 2019 Suominen’s business areas are Americas and Europe. The net sales of the Americas business area were EUR 65.0 million (66.9) and of the Europe business area EUR 38.8 million (43.1).

January–June 2019

 

In January–June 2019, Suominen’s net sales decreased by 1% from the comparison period to EUR 213.6 million (216.6). The strengthening of the USD compared to EUR increased the net sales by EUR 8.1 million. 

Net sales of the Convenience business area amounted to EUR 197.3 million (197.4) and net sales of the Care business area EUR 16.2 million (19.1).

 

The net sales of the Americas business area were EUR 133.3 million (130.1) and of the Europe business area EUR 80.3 million (86.5).

In January–June, the share of nonwovens for baby wipes increased to 41% (38%) and household wipes increased to 23% (20%) while the share of nonwovens for personal care wipes declined to 18% (23%). Other key applications remained nearly flat compared with the corresponding period last year with the share of workplace wipes at 9% and medical & hygiene applications at 9%.

 

OPERATING PROFIT AND RESULT

April–June 2019

Operating profit decreased by 9% from the comparison period and amounted to EUR 2.7 million (2.9). The operating profit was burdened by unusually high bad debt provisions. The impact of US dollar exchange rate fluctuation to the operating profit was minor. Due to the reorganizing of the business areas the second quarter operating profit includes EUR 0.4 million restructuring costs.

Profit before income taxes was EUR 1.0 million (2.4), and profit for the reporting period was EUR 0.4 million (1.8).

January–June 2019

 

Operating profit increased by 26% and was EUR 5.6 million (4.5). The impact of US dollar exchange rate fluctuation to the operating profit was minor. Profit before income taxes was EUR 2.6 million (2.1), and profit for the reporting period was EUR 1.5 million (1.4).

FINANCING

The Group’s net interest-bearing liabilities at nominal value amounted to EUR 86.5 million (79.1) at the end of the review period. The gearing ratio was 65.0% (59.6%) and the equity ratio 40.3% (41.7%).

In January–June, net financial expenses were EUR -3.0 million (-2.4), or -1.4% (-1.1%) of net sales. Fluctuations in exchange rates decreased the net financial expenses by EUR 0.1 million (0.2). The interest expenses arising from the lease liabilities increased the net financial expenses by EUR 0.5 million.

Cash flow from operations in April–June was EUR 9.1 million (10.8) and in January–June EUR 6.7 million (16.0), representing a cash flow per share of EUR 0.12 (0.28) and EUR 0.16 (0.19) for the quarter. In the second quarter the change in working capital was EUR 0.7 million (-4.0).

The decline in the cash flow from operations in the first half of the year was mainly due to change in working capital (EUR -9.8 million, EUR -4.7 million in corresponding period last year). Cash flow before change in net working capital, financial items and income taxes improved by EUR 3.8 million compared with the corresponding period in 2018. The cash flow from operations in 2018 was positively affected by the US federal corporate income tax refunds.

CAPITAL EXPENDITURE

In January–June, the gross capital expenditure totaled EUR 6.3 million (6.7) and was mainly related to the growth investment initiative at Suominen’s plant in Green Bay, WI, USA as well as to the investment in the group-wide renewal of ICT systems.

All Suominen’s eight plants are now operating with the renewed ICT systems as the implementation of the new systems was conducted successfully during the second quarter at the Paulínia, Brazil and Bethune, USA, plants.

Other investments were mainly for maintenance. Depreciation and amortization for the review period amounted to EUR 12.8 million (10.1).

INFORMATION ON SHARES AND SHARE CAPITAL

Share capital

The number of Suominen’s registered shares was 58,259,219 shares on June 30, 2019, equaling to a share capital of EUR 11,860,056.00.

Share trading and price

The number of Suominen shares traded on Nasdaq Helsinki from January 1 to June 30, 2019 was 2,775,156 shares, accounting for 4.8% of the average number of shares (excluding treasury shares). The highest price was EUR 2.70, the lowest EUR 2.04 and the volume-weighted average price EUR 2.41. The closing price at the end of review period was EUR 2.36. The market capitalization (excluding treasury shares) was EUR 135.8 million on June 30, 2019.

Treasury shares

On June 30, 2019, Suominen Corporation held 729,351 treasury shares.

In accordance with the resolution by the Annual General Meeting, in total 33,619 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 which shall be paid in shares

The Annual General Meeting held on March 19, 2019 decided that the remuneration payable to the members of the Board remains unchanged. 60% of the annual remuneration is paid in cash and 40% in Suominen Corporation’s shares.

The number of shares forming the remuneration portion which is payable in shares was determined based on the share value in the stock exchange trading maintained by Nasdaq Helsinki Ltd, calculated as the trade volume weighted average quotation of the share during the one month period immediately following the date on which the Interim Report of January‒March 2019 of the company is published. The shares were given out of the treasury shares held by the company by the decision of the Board of Directors on May 31, 2019.

Share-based incentive plans for the management and key employees

The Group management and key employees participate in the company’s share-based incentive plan. The earlier plans are described in detail in the Financial Statements 2018 and in the Remuneration Statement 2018 of Suominen Corporation, available on the company’s website www.suominen.fi

Share-based Incentive Plan 2019-2021

The Board of Directors of Suominen Corporation approved on January 30, 2019 a new share-based incentive plan for the Group management and Group key employees. The aim of the new 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 the long-term, to bind the participants to the company, and to offer them competitive reward plans based on earning and accumulating the company´s shares. The new plan is continuation of the share-based incentive plan, resolved by the Board of Directors in December 2017.

The new three-year earnings period of the plan includes calendar years 2019–2021. The Board of Directors decides on the plan’s performance criteria and required performance levels for each criterion at the beginning of an earnings period. The plan is directed to approximately 20 people.

The potential reward of the plan from the performance period 2019–2021 will be based on the relative Total Shareholder Return (TSR). The rewards to be paid on the basis of the performance period 2019–2021 correspond to the value of an approximate maximum total of 729,000 Suominen Corporation shares (including also the proportion to be settled in cash). The Board of Directors will be entitled to reduce the rewards agreed in the Performance Share Plan if the limits set by the Board of Directors for the share price are reached.

The potential rewards from the performance periods 2019–2021 will be settled partly in the company’s shares and partly in cash in 2022. The cash proportion is intended to cover taxes and tax-related costs arising from the reward to the participant. As a rule, no reward will be paid, if a participant´s employment or service ends before the reward payment.

A member of the Corporate 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. 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. Such number of shares must be held as long as the participant’s employment or service in a group company continues.

Matching Restricted Share Plan 2019-2021

The Board of Directors of Suominen Corporation approved on June 4, 2019 a new share-based incentive plan for selected Group key employees. The aim is to align the objectives of the shareholders and key employees in order to increase the value of the company in the long-term, to retain key employees at the company, and to offer them a competitive reward plan that is based on acquiring, receiving and accumulating the company´s shares.

The Matching Restricted Share Plan is directed to selected key employees in the Suominen Group. The prerequisite for receiving a reward from the plan is that a participant acquires the company’s shares, amounting to the number resolved by the Board.

If the prerequisites set for a participant have been fulfilled and his or her employment or service in a company belonging to the Suominen Group is in force at the time of the reward payment, he or she will receive matching shares as a reward.

The plan includes vesting periods, the duration of which is resolved by the Board. The potential reward will be paid partly in shares and partly in cash after a vesting period. The cash proportion is intended to cover taxes and tax-related costs arising from the rewards to the plan participants.

The prerequisite for reward payment is that a participant’s employment or service is in force upon reward payment. The plan rewards to be allocated in 2019–2021 will amount to a maximum total of 200,000 Suominen Corporation shares including also the proportion to be paid in cash.

ANNUAL GENERAL MEETING

The Annual General Meeting (AGM) of Suominen Corporation was held on March 19, 2019.

The AGM adopted the Financial Statements and the Consolidated Financial Statements for the financial year 2018 and discharged the members of the Board of Directors and the President & CEO from liability for the financial year 2018.

The AGM decided that no dividend will be distributed and no capital will be returned from the reserve for invested unrestricted equity for the financial year 2018, and the profit shall be transferred to retained earnings.

The AGM decided that the remuneration payable to the members of the Board remains unchanged. The Chair will be paid an annual fee of EUR 60,000, Deputy Chair of the Board an annual fee of EUR 37,500 and other Board members an annual fee of EUR 28,000. Further, the members of the Board will receive a fee of EUR 500 for each meeting of the Board of Directors held in the home country of the respective member and a fee of EUR 1,000 per each meeting of the Board of Directors held elsewhere than in the home country of the respective member. 60% of the remuneration is paid in cash and 40% 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).  Jan Johansson was re-elected as Chair of the Board of Directors and Andreas Ahlström, Risto Anttonen, Hannu Kasurinen and Laura Raitio were re-elected as members of the Board of Directors. Sari Pajari was elected as a new member of the Board.

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 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 the issuance of shares and granting of options and the issuance of special rights entitling to shares. The terms and conditions of the authorization are explained later in this half-year financial report.

Suominen published a stock exchange release on March 19, 2019 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 Board members can be viewed on Suominen’s website at www.suominen.fi.

Authorizations of the Board of Directors

The Annual General Meeting (AGM) held on March 19, 2019 authorized the Board of Directors to decide on the repurchase a maximum of 400,000 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, 2020 and it revokes all earlier authorizations to repurchase company’s own shares.

The Annual General Meeting (AGM) held on March 19, 2019 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, 2020.

On May 29, 2019 Suominen announced about the portion of the annual remuneration of the members of the Board of Directors which was paid in shares. The aggregate number of the shares that were granted out of the Company’s treasury shares was 33,619 shares. After this, the maximum amount of authorization is 4,966,381 shares in aggregate.

NOTIFICATIONS UNDER CHAPTER 9, SECTION 5 OF THE SECURITIES MARKET ACT

During the review period Suominen received no notifications under Chapter 9, Section 5 of the Securities Market Act.

CHANGES IN MANAGEMENT

On April 24, 2019 Suominen announced its new business areas and changes in the Executive Team. Toni Tamminen (D.Sc. Technology, M.Sc. Economics) was appointed as CFO and member of the Suominen’s Executive Team from July 30, 2019 onwards. As it was announced earlier, Suominen’s former CFO Tapio Engström’s last day at Suominen was May 3 and Sirpa Koskinen, VP, Group Controller acted as interim CFO until Toni Tamminen started.

Various changes in the Executive Team responsibilities were announced simultaneously: Ernesto Levy was appointed Senior Vice President, Americas business area, previously SVP, Convenience business area. Markku Koivisto was appointed interim Senior Vice President, Europe business area, he continues also in his role as CTO. Lynda Kelly was appointed Senior Vice President, Business Development, previously SVP, Care business area. Larry Kinn, SVP Operational Excellence, retired in July. At the same time Suominen announced that the Corporate Leadership Team was discontinued.

On May 20, 2019 Suominen announced that Hannu Sivula, Senior Vice President, Human Resources will leave the company.

On May 22, 2019 Suominen announced that Klaus Korhonen (LL.M) was appointed as Senior Vice President, Human Resources and Legal Affairs and member of Suominen’s Executive Team. He will join the company on August 19, 2019.

BUSINESS RISKS AND UNCERTAINTIES

Global political developments and changes in consumer preferences 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 provides partial protection against this risk.

The demand for Suominen’s products depends on the development of consumer preferences. Historically, changes in global consumer preferences have had mainly positive impact on Suominen, as they have resulted in the growing demand for products made of nonwovens. 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 rapidly change the consumers’ preferences and 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 10 years. Suominen also interacts with policymakers regarding the so-called Single-Use Plastic Directive proposal in the European Union.

The estimate on the development of Suominen’s net sales is partially based on forecasts and delivery plans received from the company’s customers. Changes in these forecasts and plans, resulting from changes in the market conditions or in customers’ inventory levels, may affect Suominen’s net sales.

Suominen’s customer base is fairly concentrated, which adds to the customer-specific risk. This may affect Suominen’s financial result if customers’ purchasing habits become more cautious as a result of a changes in consumption, or as a result of sales losses. In 2018, the Group’s ten largest customers accounted for 65% (63%) 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 risk policy approved by the Board of Directors. Credit limits are confirmed for customers on the basis of credit ratings and customer history.

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 risk 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 business environment or exchange rates, could have an impact on Suominen’s operations in Brazil.

Suominen purchases significant amounts of pulp- and oil-based raw materials annually. Raw materials are the largest cost item for operations. Rapid changes in the global market prices of raw materials have an impact on the company’s profitability. Suominen’s stocks equal to two to four weeks’ consumption and passing on the price changes of these raw materials to the prices Suominen charges its contract customers takes two to five months.

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.

Suominen has numerous regional, national and international competitors in its different product groups. There is currently oversupply in some product groups in Suominen’s both principal market regions. 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.

Suominen has identified also other business risks and uncertainties, for example risks related to production technologies, product liability, investments and financial risks. These risks are described in more detail in the Interim Report January–March 2019 and Financial Statements 2018.

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 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.

In the euro area, the consumer confidence index decreased slightly in the second quarter. In the United States the consumer confidence index instead increased slightly.  The consumer confidence index is still strong in both geographical areas.

 

Suominen assesses the trend in the demand for its products on the bases of both the general market situation and, above all, on the basis of the framework agreements drawn up with its customers. There is currently overcapacity in the market, mainly in nonwovens for baby wipes and flushables.


At large, the growth in the demand in Suominen’s target markets is expected to continue in 2019, on average, at the pace of 2018.

OUTLOOK FOR 2019

Suominen repeats its estimate, disclosed on January 31, 2019, that Suominen expects that in 2019, its net sales will be at the level of 2018 and comparable operating profit, excluding the positive effect of applying IFRS 16 Leases, will improve from 2018. In 2018, Suominen’s net sales amounted to EUR 431.1 million and operating profit to EUR 4.6 million. In 2018 Suominen had no items affecting the comparability of the operating profit. The calculation of comparable operating profit is explained in the disclosures of this release.


ANALYST AND PRESS CONFERENCE

Petri Helsky, President & CEO, and Toni Tamminen, CFO, will present the Q2 financial result in Finnish at an analyst and press conference in Helsinki on Wednesday, August 7 at 3:00 pm (EEST). The conference will take place at Suominen’s Head Office, Ultimes Business Garden, Karvaamokuja 2 B, Helsinki. The presentation material will be available after the analyst and press conference at www.suominen.fi

NEXT FINANCIAL REPORT

Suominen Corporation will publish its Interim Report for January–September 2019 on Tuesday October 22, 2019 approximately at 3:00 pm (EEST).

SUOMINEN GROUP JANUARY 1 – JUNE 30, 2019

The figures in these half-year financial statements are mainly presented in EUR thousands. As a result of rounding differences, the figures presented in the tables do not necessarily add up to total.

This half-year report has not been audited.

This half-year report has been prepared in accordance with the principles defined in IAS 34 Interim Financial Reporting. The principles for preparing the interim report are the same as those used for preparing the consolidated financial statements for 2018, with the exception of the effect of the new accounting standards and interpretations which came into force on January 1, 2019.

The new standards, amendments and interpretations, which have been applied from January 1, 2019 and which have a material effect on Suominen have been disclosed in Suominen’s January–March 2019 Interim Report. Other new or amended standards or interpretations applicable from January 1, 2019 are not material for Suominen Group. Also the effects of the changes in accounting principles on Suominen’s opening balances in the statement of financial position are presented separately in Suominen’s January–March 2019 Interim Report.

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

     

Restated

EUR thousand

30.6.2019

30.6.2018

31.12.2018

Assets

     

Non-current assets

     

Goodwill

15,496

15,496

15,496

Intangible assets

21,572

20,111

21,231

Property, plant and equipment

124,956

132,590

129,391

Right-of-use assets

15,891

16,797

Loan receivables

3,348

3,072

3,348

Equity instruments

777

777

777

Other non-current receivables

43

1,317

1,393

Deferred tax assets

2,374

4,681

2,540

Total non-current assets

184,456

178,043

190,972

       

Current assets

     

Inventories

47,294

47,290

51,583

Trade receivables

61,282

59,575

58,097

Loan receivables

4,017

4,337

4,017

Other current receivables

5,864

3,630

4,118

Assets for current tax

965

672

974

Cash and cash equivalents

26,530

24,480

27,757

Total current assets

145,952

139,984

146,545

       

Total assets

330,408

318,027

337,517

       

Equity and liabilities

     

Equity

     

Share capital

11,860

11,860

11,860

Share premium account

24,681

24,681

24,681

Reserve for invested unrestricted equity

81,269

81,185

81,185

Treasury shares

-44

-44

-44

Fair value and other reserves

264

264

264

Exchange differences

284

-2,555

-669

Retained earnings

14,865

17,241

13,237

Total equity attributable to owners of the parent

133,178

132,631

130,513

       

 

Liabilities

     

Non-current liabilities

     

Deferred tax liabilities

12,411

14,841

12,373

Liabilities from defined benefit plans

815

908

847

Provisions

1,557

1,511

Non-current lease liabilities

11,827

116

12,706

Other non-current liabilities

17

17

17

Debentures

81,154

95,736

80,615

Total non-current liabilities

107,780

111,617

108,067

       

Current liabilities

     

Debentures

15,716

15,687

Current lease liabilities

2,877

106

2,742

Other current interest-bearing liabilities

5,000

10,000

5,000

Liabilities for current tax

317

321

121

Trade payables and other current liabilities

65,540

63,352

75,386

Total current liabilities

89,450

73,780

98,936

       

Total liabilities

197,230

185,397

207,003

       

Total equity and liabilities

330,408

318,027

337,517

 

 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

EUR thousand

4-6/2019

4-6/2018

1-6/2019

1-6/2018

1-12/2018

Net sales

103,824

109,961

213,590

216,577

431,109

Cost of goods sold

-94,099

-99,905

-194,920

-198,674

-399,826

Gross profit

9,725

10,056

18,670

17,903

31,283

Other operating income

684

571

1,603

1,195

2,528

Sales and marketing expenses

-2,011

-1,830

-3,788

-3,610

-7,048

Research and development

-914

-1,001

-1,722

-1,809

-3,515

Administration expenses

-4,437

-4,684

-8,643

-9,021

-17,599

Other operating expenses

-392

-193

-504

-191

-1,055

Operating profit

2,655

2,919

5,616

4,466

4,594

Net financial expenses

-1,695

-507

-2,992

-2,383

-5,557

Profit before income taxes

960

2,411

2,625

2,083

-963

Income taxes

-585

-598

-1,124

-642

-757

Profit / loss for the period

375

1,813

1,500

1,441

-1,720

 

 

       

 

Earnings per share, EUR

         

Basic

0.01

0.03

0.03

0.03

-0.03

Diluted

0.01

0.03

0.03

0.03

-0.03

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

EUR thousand

4-6/

2019

4-6/

2018

1-6/

2019

1-6/

2018

1-12/

2018

           

Profit for the period

375

1,813

1,500

1,441

-1,720

           

Other comprehensive income:

         

Other comprehensive income that will be subsequently reclassified to profit or loss

         

Exchange differences

-1,223

4,210

1,015

871

2,936

Income taxes related to other comprehensive income

130

-530

-62

-275

-454

Total

-1,093

3,680

953

595

2,482

Other comprehensive income that will not be subsequently reclassified to profit or loss

         

Remeasurements of defined benefit plans

-41

Income taxes related to other comprehensive income

11

Total

-29

           

Total other comprehensive income

-1,093

3,680

953

595

2,452

           

Total comprehensive income for the period

-718

5,493

2,453

2,036

732

 


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

 

EUR thousand

Share capital

Share premium account

Reserve for invested unrestricted equity

Treasury shares

Equity 1 January 2019

11,860

24,681

81,185

-44

Profit / loss for the period

Other comprehensive income

Total comprehensive income

Share-based payments

Conveyance of treasury shares

84

Equity 30 June 2019

11,860

24,681

81,269

-44

 

 

 

EUR thousand

Exchange differences

Fair value and other reserves

Retained earnings

Total equity attributable to owners of the parent

Equity 1 January 2019

-669

264

13,237

130,513

Profit / loss for the period

1,500

1,500

Other comprehensive income

953

953

Total comprehensive income

953

1,500

2,453

Share-based payments

128

128

Conveyance of treasury shares

84

Equity 30 June 2019

284

264

14,865

133,178

 

EUR thousand

Share capital

Share premium account

Reserve for invested unrestricted equity

Treasury shares

Equity 1 January 2018

11,860

24,681

87,423

-44

Profit / loss for the period

Other comprehensive income

Total comprehensive income

Share-based payments

Return of capital

-6,322

Conveyance of treasury shares

84

Equity 30 June 2018

11,860

24,681

81,185

-44

EUR thousand

Exchange differences

Fair value and other reserves

Retained earnings

Total equity attributable to owners of the parent

 

Equity 1 January 2018

-3,151

264

15,761

136,794

 

Profit / loss for the period

1,441

1,441

 

Other comprehensive income

595

595

 

Total comprehensive income

595

1,441

2,036

 

Share-based payments

39

39

 

Return of capital

-6,322

 

Conveyance of treasury shares

84

 

Equity 30 June 2018

-2,555

264

17,241

132,631

 

               

 

 

 

 

 

 

EUR thousand

Share capital

Share premium account

Reserve for invested unrestricted equity

Treasury shares

Equity 1 January 2018

11,860

24,681

87,423

-44

Profit / loss for the period

Other comprehensive income

Total comprehensive income

Share-based payments

Return of capital

-6,322

Unpaid return of capital, booking back to equity

0

Conveyance of treasury shares

84

Equity 31 December 2018

11,860

24,681

81,185

-44

 

EUR thousand

Exchange differences

Fair value and other reserves

Retained earnings

Total equity attributable to owners of the parent

Equity 1 January 2018

-3,151

264

15,761

136,794

Profit / loss for the period

-1,720

-1,720

Other comprehensive income

2,482

-29

2,452

Total comprehensive income

2,482

-1,749

732

Share-based payments

-775

-775

Return of capital

-6,322

Unpaid return of capital, booking back to equity

0

Conveyance of treasury shares

84

Equity 31 December 2018

-669

264

13,237

130,513

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

EUR thousand

1-6/2019

1-6/2018

1-12/2018

       

Cash flow from operations

     

Profit for the period

1,500

1,441

-1,720

Total adjustments to profit for the period

17,468

13,767

27,210

Cash flow before changes in net working capital

18,969

15,208

25,490

Change in net working capital

-9,780

-4,707

5,621

Financial items

-1,620

-1,429

-4,677

Income taxes

-829

6,881

5,715

Cash flow from operations

6,739

15,952

32,148

       

Cash flow from investments

     

Investments in property, plant and equipment and intangible assets

-6,581

-7,146

-15,039

Cash flow from disposed businesses

198

198

Sales proceeds from property, plant and equipment and intangible assets

0

4

Cash flow from investments

-6,581

-6,948

-14,837

       

Cash flow from financing

     

Drawdown of current interest-bearing liabilities

5,000

5,000

Repayment of current interest-bearing liabilities

-6,394

-5,058

-15,118

Repayment in loan receivables

Return of capital

-6,322

-6,322

Cash flow from financing

-1,394

-11,380

-16,440

       

Change in cash and cash equivalents

-1,235

-2,376

871

       

Cash and cash equivalents at the beginning of the period

27,757

27,240

27,240

Effect of changes in exchange rates

9

-384

-355

Change in cash and cash equivalents

-1,224

-2,376

871

Cash and cash equivalents at the end of the period

26,530

24,480

27,757

 

 

KEY RATIOS

 

 

       

Restated

 

4-6/

2019

4-6/

2018

1-6/

2019

1-6/

2018

1-12/

2018

Change in net sales, % *

-5.6

-1.8

-1.4

-3.7

1.2

Gross profit, as percentage of net sales, %

9.4

9.1

8.7

8.3

7.3

Comparable gross profit, as percentage of net sales, %

9.4

9.1

8.7

8.3

7.3

Operating profit, as percentage of net sales, %

2.6

2.7

2.6

2.1

1.1

Comparable operating profit, as percentage of net sales, %

2.6

2.7

2.6

2.1

1.1

Net financial items, as percentage of net sales, %

-1.6

-0.5

-1.4

-1.1

-1.3

Profit before income taxes, as percentage of net sales, %

0.9

2.2

1.2

1.0

-0.2

Profit for the period, as percentage of net sales, %

0.4

1.6

0.7

0.7

-0.4

Gross capital expenditure, EUR thousand

2,495

4,441

6,289

6,677

13,580

Depreciation and amortization, EUR thousand

6,434

5,124

12,781

10,123

21,018

Return on equity, rolling 12 months, %

-1.3

7.2

-1.3

Return on invested capital, rolling 12 months, %

2.7

4.1

2.3

Equity ratio, %

40.3

41.7

38.7

Gearing, %

65.0

59.6

65.9

Average number of personnel

691

670

676

Earnings per share, EUR, basic

0.01

0.03

0.03

0.03

-0.03

Earnings per share, EUR, diluted

0.01

0.03

0.03

0.03

-0.03

Cash flow from operations per share, EUR

0.16

0.19

0.12

0.28

0.56

Equity per share, EUR

2.31

2.31

2.27

Number of shares, end of period, excluding treasury shares

57,529,868

57,496,249

57,496,249

Share price, end of period, EUR

2.36

3.40

2.05

Share price, period low, EUR

2.04

3.22

1.80

Share price, period high, EUR

2.70

4.60

4.60

Volume weighted average price during the period, EUR

2.41

3.82

3.10

Market capitalization, EUR million

135.8

195.5

117.9

Number of traded shares during the period

2,775,156

1,688,315

3,643,880

Number of traded shares during the period, % of average number of shares

4.8

2.9

6.3

           

*     Compared with the corresponding period in the previous year.

   
     

30.6.2019

30.6.2018

31.12.2018

Interest-bearing net debt, EUR thousands

     

Non-current interest-bearing liabilities, nominal value

   

96,827

100,846

97,706

Current interest-bearing liabilities, nominal value

   

23,607

10,106

23,472

Interest-bearing receivables and cash and cash equivalents

 

 

-33,895

-31,889

-35,122

Interest-bearing net debt

 

 

86,539

79,062

86,055

 

 

CALCULATION OF KEY RATIOS AND ALTERNATIVE PERFORMANCE MEASURES

Key ratios per share are either IFRS key ratios (earnings per share) or required by Ordinance of the Ministry of Finance in Finland or alternative performance measures (cash flow from operations per share).

 

Some of the other key ratios Suominen publishes are alternative performance measures. An alternative performance measure is a key ratio which has not been defined in IFRS standards. Suominen believes that the use of alternative performance measures provides useful information for example to investors regarding the Group's financial and operating performance and makes it easier to make comparisons between the reporting periods.

 

The link between the components of the key ratios per share and the consolidated financial statements is presented in the consolidated financial statements of 2018. The link between the components of the alternative performance measures and the consolidated financial statements is presented in Suominen’s Annual Report for 2018.

 

 

Calculation of key ratios per share

 

Earnings per share                                                                               

                                                                                      

Basic earnings per share (EPS)

 

Profit for the period

=

Share-issue adjusted average number of shares excluding treasury shares

 
       
       

Diluted earnings per share (EPS)

 

Profit for the period

=

Average diluted share-issue adjusted number of shares excluding treasury shares

 

 

EUR thousand

 

30.6.2019

30.6.2018

31.12.2018

Profit for the period

 

1,500

1,441

-1,720

         
         

Average share-issue adjusted number of shares

 

57,501,821

57,441,177

57,468,939

Average diluted share-issue adjusted number of shares excluding treasury shares

 

57,540,782

57,523,022

57,508,720

         

Earnings per share

       
         

EUR

 

 

 

 

Basic

 

0.03

0.03

-0.03

Diluted

 

0.03

0.03

-0.03

 

       

 Cash flow from operations per share

                     

Cash flow from operations per share

 

Cash flow from operations

=

Share-issue adjusted number of shares excluding treasury shares, end of reporting period

 

 

 

 

30.6.2019

30.6.2018

31.12.2018

Cash flow from operations, EUR thousand

 

6,739

15,952

32,148

Share-issue adjusted number of shares excluding treasury shares, end of reporting period

 

57,529,868

57,496,249

57,496,249

Cash flow from operations per share, EUR

 

0.12

0.28

0.56

 

 

 

 

 

 

                     

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

 

 

 

 

 

 

30.6.2019

30.6.2018

31.12.2018

Total equity attributable to owners of the parent, EUR thousand

 

133,178

132,631

130,513

Share-issue adjusted number of shares excluding treasury shares, end of reporting period

 

57,529,868

57,496,249

57,496,249

Equity per share, EUR

 

2.31

2.31

2.27

 

                                                                                                                                             

 

Market capitalization

 

Market capitalization

=

Number of shares at the end of reporting period excluding treasury shares x share price at the end of period

 

 

 

30.6.2019

30.6.2018

31.12.2018

Number of shares at the end of reporting period excluding treasury shares

 

57,529,868

57,496,249

57,496,249

Share price at end of the period, EUR

2.36

3.40

2.05

Market capitalization, EUR million

 

135.8

195.5

117.9

 

 

Share turnover

 

Share turnover

=

The proportion of number of shares traded during the period to weighted average number of shares excluding treasury shares

 

 

 

30.6.2019

30.6.2018

31.12.2018

Number of shares traded during the period

 

2,775,156

1,688,315

3,643,880

Average number of shares excluding treasury shares

57,501,821

57,441,177

57,468,939

Share turnover, %

 

4.8

2.9

6.3

         

 

 

Calculation of key ratios and alternative performance measures

 

Operating profit and comparable operating profit

 

Operating profit (EBIT)

=

Profit before income taxes + net financial expenses

         

Comparable operating profit (EBIT)

=

Profit before income taxes + net financial expenses, adjusted with items affecting comparability

In order to improve the comparability of result between reporting periods, Suominen presents comparable operating profit as an alternative performance measure. Operating profit is adjusted with material items that are considered to affect comparability between reporting periods. These items include, among others, impairment losses or reversals of impairment losses, gains or losses from the sales of property, plant and equipment or intangible assets or other assets and restructuring costs. Suominen did not have any items affecting comparability in 2019 or 2018.

 

 

EBITDA

 

EBITDA

=

EBIT + depreciation, amortization and impairment losses

 

 

       
         

EUR thousand

 

30.6.2019

30.6.2018

31.12.2018

Operating profit

 

5,616

4,466

4,594

+ Depreciation and amortization

12,781

10,123

21,018

EBITDA

 

18,397

14,589

25,613

         
               

 

Gross capital expenditure

 

EUR thousand

 

30.6.2019

30.6.2018

31.12.2018

Increases in intangible assets

 

1,883

3,664

6,157

Increases in property, plant and equipment

4,406

3,013

7,423

Gross capital expenditure

 

6,289

6,677

13,580

 

 

 

Interest-bearing net debt

 

It is the opinion of Suominen that presenting interest-bearing liabilities not only at amortized cost but also at nominal value gives relevant additional information to the investors.

 

Interest-bearing net debt

=

Interest-bearing liabilities at nominal value - interest-bearing receivables - cash and cash equivalents

 

 

       

Restated

EUR thousand

 

30.6.2019

30.6.2018

31.12.2018

Interest-bearing liabilities

 

116,573

105,958

116,749

Tender and issuance costs of the debentures

 

3,860

4,994

4,429

Interest bearing receivables

 

-7,365

-7,409

-7,365

Cash and cash equivalents

-26,530

-24,480

-27,757

Interest-bearing net debt

 

86,539

79,062

86,056

         

Interest-bearing liabilities

 

116,573

105,958

116,749

Tender and issuance costs of the debentures

 

3,860

4,994

4,429

Nominal value of interest-bearing liabilities

 

120,434

110,952

121,178

 

 

 

Return on equity (ROE), %

 

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

 

30.6.2019

30.6.2018

31.12.2018

Profit for the reporting period (rolling 12 months)

 

-1,660

9,562

-1,720

         

Total equity attributable to owners of the parent 30 June 2018 / 30 June 2017 / 31 December 2017

 

132,631

134,074

136,794

Total equity attributable to owners of the parent 30 September 2018 / 30 September 2017 / 31 March 2018

 

130,981

132,564

126,866

Total equity attributable to owners of the parent 31 December 2018 / 31 December 2017 / 30 June 2018

 

130,513

136,794

132,631

Total equity attributable to owners of the parent 31 March 2019 / 31 March 2018 / 30 September 2018

 

133,776

126,866

130,981

Total equity attributable to owners of the parent 30 June 2019 / 30 June 2018 / 31 December 2018

 

133,178

132,631

130,513

Average

 

132,216

132,586

131,557

         

Return on equity (ROE), %

 

-1.3

7.2

-1.3

                  

 

Invested capital

 

Invested capital

=

Total equity attributable to owners of the parent + interest-bearing liabilities

 

       

Restated

EUR thousand

 

30.6.2019

30.6.2018

31.12.2018

Total equity attributable to owners of the parent

 

133,178

132,631

130,513

Interest-bearing liabilities

 

116,573

105,958

116,749

Invested capital

 

249,752

238,589

247,263

 

Return on invested capital (ROI), %

Return on invested capital (ROI), %

=

Operating profit + financial income (rolling 12 months) x 100

   

Invested capital, quarterly average

 

       

Restated

EUR thousand

 

30.6.2019

30.6.2018

31.12.2018

Operating profit (rolling 12 months)

 

5,744

8,817

4,594

Financial income (rolling 12 months)

 

829

780

801

Total

 

6,573

9,597

5,395

         

Invested capital 30 June 2018 / 30 June 2017 / 31 December 2017

 

238,589

234,892

247,266

Invested capital 30 September 2018 / 30 September 2017 / 31 March 2018

 

227,186

229,735

232,580

Invested capital 31 December 2018 / 31 December 2017 / 30 June 2018

 

247,263

247,266

238,589

Invested capital 31 March 2019 / 31 March 2018 / 30 September 2018

 

250,259

232,580

227,186

Invested capital 30 June 2019 / 30 June 2018 / 31 December 2018

 

249,752

238,589

247,263

Average

 

242,610

236,613

238,577

         

Return on invested capital (ROI), %

 

2.7

4.1

2.3

 

 

Equity ratio, %

 

Equity ratio, %

=

Total equity attributable to owners of the parent x 100

 

 

   

Total assets - advances received

 

       

Restated

EUR thousand

 

30.6.2019

30.6.2018

31.12.2018

Total equity attributable to owners of the parent

 

133,178

132,631

130,513

         

Total assets

 

330,408

318,027

337,517

Advances received

 

-179

-51

-27

   

330,229

317,977

337,490

         

Equity ratio, %

 

40.3

41.7

38.7

                 

 

Gearing, %

 

Gearing, %

=

Interest-bearing net debt x 100

 
   

Total equity attributable to owners of the parent

 

 

       

Restated

EUR thousand

 

30.6.2019

30.6.2018

31.12.2018

Interest-bearing net debt

 

86,539

79,062

86,056

Total equity attributable to owners of the parent

 

133,178

132,631

130,513

Gearing, %

 

65.0

59.6

65.9

 

 

NET SALES BY GEOGRAPHICAL MARKET AREA

EUR thousand

1-6/2019

1-6/2018

1-12/2018

Finland

1,338

1,349

2,415

Rest of Europe

76,251

80,177

153,133

North and South America

133,833

130,531

268,188

Rest of the world

2,168

4,521

7,372

Total

213,590

216,577

431,109

 

 

 

QUARTERLY SALES DEVELOPMENT BY BUSINESS AREA

 

Convenience and Care

             
 

2019

2018

EUR thousand

4-6

1-3

10-12

7-9

4-6

1-3

Convenience

96,086

101,229

102,915

95,634

99,947

97,481

Care

7,704

8,545

6,848

9,145

9,962

9,152

Unallocated exchange differences

33

-7

2

-12

52

-17

Total

103,824

109,766

109,764

104,768

109,961

106,616

 

 

Americas and Europe

 

 

2019

2018

EUR thousand

4-6

1-3

10-12

7-9

4-6

1-3

Americas

65,011

68,326

65,916

63,896

66,855

63,210

Europe

38,798

41,466

43,857

40,908

43,086

43,441

Unallocated exchange differences and group eliminations

14

-25

-9

-36

21

-35

Total

103,824

109,766

109,764

104,768

109,961

106,616

 

 

QUARTERLY DEVELOPMENT

 

             
 

2019

2018

EUR thousand

4-6

1-3

10-12

7-9

4-6

1-3

Net sales

103,824

109,766

109,764

104,768

109,961

106,616

Comparable operating profit

2,655

2,961

-361

488

2,919

1,548

as % of net sales

2.6

2.7

-0.3

0.5

2.7

1.5

Items affecting comparability

-363

Operating profit

2,655

2,961

-361

488

2,919

1,548

as % of net sales

2.6

2.7

-0.3

0.5

2.7

1.5

Net financial items

-1,695

-1,297

-1,547

-1,626

-507

-1,876

Profit before income taxes

960

1,665

-1,908

-1,138

2,411

-328

as % of net sales

0.9

1.5

-1.7

-1.1

2.2

-0.3

 

 

RELATED PARTY INFORMATION

The related parties of Suominen include the members of the Board of Directors, President & CEO and the members of the Corporate Executive Team as well as their family members and their controlled companies. In addition, shareholders who have a significant influence in Suominen through share ownership are included in related parties. Suominen has no associated companies.

In its transactions with related parties Suominen follows the same commercial terms as in transactions with third parties.

 

The Annual General Meeting held on March 19, 2019 resolved that 40% 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 2019 was 33,619 shares. The shares were transferred on May 31, 2019 and the value of the transferred shares totaled EUR 83,796, or approximately EUR 2.49 per share.

Other salaries paid to the related parties during the first half of 2019 amounted to EUR 1,167 thousand, obligatory pension payments to EUR 142 thousand, voluntary pension payments to EUR 20 thousand and accruals based on the non-vested share-based incentive plans were EUR 85 thousand.

 


CHANGES IN PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND RIGHT-OF-USE ASSETS



 

30.6.2019

30.6.2018

31.12.2018

EUR thousand

Property, plant and equipment

Intangible assets

Property, plant and equipment

Intangible assets

Property, plant and equipment

Intangible assets

Carrying amount at the beginning of the period

129,391

21,231

136,649

17,470

136,649

17,470

Capital expenditure

4,406

1,883

3,013

3,664

7,423

6,157

Disposals and decreases

-1

0

Depreciation and amortization

-9,523

-1,546

-9,135

-988

-18,648

-2,371

Exchange differences and other changes

683

4

2,063

-35

3,967

-25

Carrying amount at the end of the period

124,956

21,572

132,591

20,111

129,391

21,231

 

 

 

30.6.2019

31.12.2018

EUR thousand

Right-of-use assets

Right-of-use assets

Carrying amount at the beginning of the period

16,797

Capital expenditure and increases

717

Application of IFRS 16

16,797

Disposals and decreases

-103

Depreciation and amortization

-1,712

Exchange differences and other changes

193

Carrying amount at the end of the period

15,891

16,797

 

Goodwill is not included in intangible assets.


CHANGES IN INTEREST-BEARING LIABILITIES

     

Restated

EUR thousand

1-6/2019

1-6/2018

1-12/2018

Total interest-bearing liabilities at the beginning of the period

116,749

110,472

110,472

       

Current liabilities at the beginning of the period

23,429

15,118

15,118

Repayment of current liabilities, cash flow items

-6,394

-5,058

-15,118

Drawdown of current liabilities, cash flow items

5,000

5,000

Increases in current liabilities, non-cash flow items (*

148

2,664

Decreases of current liabilities, non-cash flow items

-20

Reclassification from non-current liabilities

1,393

46

15,749

Periodization of debenture to amortized cost, non-cash flow items

29

16

Exchange rate difference, non-cash flow item

8

Current liabilities at the end of the period

23,592

10,106

23,429

       
       

Non-current liabilities at the beginning of the period

12,706

162

162

Increases in non-current liabilities, non-cash flow items (*

570

12,622

Decreases of non-current liabilities, non-cash flow items

-84

Reclassification to current liabilities

-1,393

-46

-78

Exchange rate difference, non-cash flow item

28

Current liabilities at the end of the period

11,827

116

12,706

       

Non-current debentures at the beginning of the period

80,615

95,192

95,192

Periodization of debenture to amortized cost, non-cash flow items

539

544

1,093

Reclassification to current liabilities

-15,671

Non-current debentures at the end of the period

81,154

95,736

80,615

       

Total interest-bearing liabilities at the end of the period

116,573

105,958

116,749

 

(* 2018 recognition of lease liabilities to statement of financial position in IFRS 16 application.

 

 

CONTINGENT LIABILITIES

                                                                                                            

 

 

 

 

Restated

EUR thousands

30.6.2019

 

30.6.2018

31.12.2018

 

 

 

 

 

Other commitments

 

 

 

 

Operating leases

298

 

15,876

525

Contractual commitments to acquire property, plant and equipment

892

 

2,255

1,128

 

 

 

 

 

Guarantees

 

 

 

 

On own behalf

10,472

 

10,880

10,516

Other own commitments

2,538

 

3,178

2,863

 

13,010

 

14,058

13,378

 

NOMINAL AND FAIR VALUES OF DERIVATIVE INSTRUMENTS

 

 

30.6.2019

30.6.2018

31.12.2018

EUR thousand

Nominal value

Fair
value

Nominal
value

Fair
value

Nominal
value

Fair
value

Currency forward contracts

   

 

 

 

 

  Hedge accounting not applied

2,891

-6

12,524

-37

1,397

9

 

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

 

EUR thousand

a.

b.

c.

d.

e.

Equity instruments

347

429

777

777

Loan receivables

4,017

3,348

7,365

7,365

Trade receivables

61,282

61,282

61,282

Derivatives

7

7

7

Interest and other financial receivables

723

723

723

Cash and cash equivalents

26,530

26,530

26,530

Total 30 June 2019

4,371

91,883

429

96,683

96,683

 

EUR thousand

a.

b.

c.

d.

e.

Equity instruments

347

429

777

777

Loan receivables

4,017

3,348

7,365

7,365

Trade receivables

58,097

58,097

58,097

Derivatives

9

9

9

Interest and other financial receivables

491

491

491

Cash and cash equivalents

27,757

27,757

27,757

Total 31 December 2018

4,373

89,693

429

94,496

94,496

 

Principles in estimating fair value of financial assets for 2019 are the same as those used for preparing the consolidated financial statements for 2018.

 

 

FINANCIAL LIABILITIES



 

30.6.2019

31.12.2018

   
       

Restated

EUR thousand

Carrying amount

Fair value

Nominal value

Carrying amount

Fair value

Nominal value

Non-current financial liabilities

           
             

Debentures

81,154

83,513

85,000

80,615

80,750

85,000

Lease liabilities

11,827

11,827

11,827

12,706

12,706

12,706

Total non-current financial liabilities

92,980

95,339

96,827

93,320

93,456

97,706

             

Current financial liabilities

           
             

Debentures

15,716

15,905

15,730

15,687

16,156

15,730

Current part of non-current loans from financial institutions and current loans from financial institutions

5,000

5,000

5,000

5,000

5,000

5,000

Lease liabilities

2,877

2,877

2,877

2,742

2,742

2,742

Derivatives, hedge accounting not applied

12

12

12

Interest accruals

1,810

1,810

1,810

725

725

725

Other current liabilities

333

333

333

308

308

308

Trade payables

54,212

54,212

54,212

66,677

66,677

66,677

Total current financial liabilities

79,960

80,149

79,974

91,139

91,609

91,182

             

Total

172,941

175,488

176,801

184,459

185,064

188,888

 


Principles in estimating fair value for financial liabilities for 2019 are the same as those used for preparing the consolidated financial statements for 2018.

 

 

 

FAIR VALUE MEASUREMENT HIERARCHY

EUR thousands

Level 1

Level 2

Level 3

Financial assets and liabilities at fair value

     

Loan receivables

4,017

Currency forward contracts, receivables

7

Equity instruments

777

Total

7

4,794

       

Derivatives at fair value

     

Currency forward contracts, liabilities

-12

Total

-12

 

Principles in estimating fair value of financial assets and their hierarchies for 2019 are the same as those used for preparing the consolidated financial statements for 2018.     

There were no transfers in the fair value measurement hierarchy levels during the reporting period.   

 

RESTATEMENT OF PREVIOUSLY PUBLISHED FIGURES

 

Restatement of previously published figures is presented in the Interim report for January–March 2019.

 

 

SUOMINEN CORPORATION
Board of Directors


For additional information, please contact:
Petri Helsky, President & CEO, tel. +358 (0)10 214 3080
Toni Tamminen, Senior Vice President and CFO, tel. +358 (0)10 214 3051

 

 

 

 

 

Suominen in brief

Suominen manufactures nonwovens as roll goods for wipes as well as for medical and hygiene products. The end products made of Suominen’s nonwovens – wet wipes, feminine care products and swabs, for instance – bring added value to the daily life of consumers worldwide. Suominen is the global market leader in nonwovens for wipes and employs nearly 700 people in Europe and in the Americas. Suominen’s net sales in 2018 amounted to EUR 431.1 million. The Suominen share (SUY1V) is listed in Nasdaq Helsinki Stock Exchange (Mid Cap). Read more at www.suominen.fi.

 


Distribution:
Nasdaq Helsinki
Main media
www.suominen.fi

 

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