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Suominen Corporation’s Interim Report for January 1 – March 31, 2021: Strong start to the year, outlook unchanged

Suominen Corporation's Interim Report on April 28, 2021 at 9:30 a.m. (EEST)

 

Suominen Corporation's Interim Report for January 1 - March 31, 2021:

Strong start to the year, outlook unchanged

 

KEY FIGURES

 

 

1-3/

1-3/

1-12/

 

2021

2020

2020

Net sales, EUR million

115.3

110.2

458.9

Comparable EBITDA

18.5

11.3

60.9

Comparable EBITDA, %

16.1

10.2

13.3

EBITDA

18.5

11.3

60.9

Operating profit, EUR million

13.6

5.7

39.5

Operating profit, %

11.8

5.1

8.6

Profit for the period, EUR million

13.8

3.5

30.1

Cash flow from operations, EUR million

16.0

9.4

57.0

Cash flow from operations per share, EUR

0.28

0.16

0.99

Earnings per share, basic, EUR

0.24

0.06

0.52

Return on invested capital, rolling 12 months, % 

19.8

4.8

16.7

Gearing, %

13.3

43.7

25.4

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

January–March 2021 in brief:

- Net sales increased by 5% and amounted to EUR 115.3 million (110.2). The negative impact from currencies on net sales was EUR 8.1 million

- Comparable EBITDA (earnings before interest, taxes, depreciation and amortization) improved significantly to EUR 18.5 million (11.3). The negative impact from currencies on EBITDA was EUR 1.5 million

- Cash flow from operations improved to EUR 16.0 million (9.4)

 

Outlook for 2021 unchanged


Suominen expects that its comparable EBITDA (earnings before interest, taxes, depreciation and amortization) in 2021 will be in line with 2020. The demand for nonwovens is expected to remain strong, however volatility in the raw material and transportation markets has increased uncertainty and may impact the result negatively. In 2020, Suominen’s comparable EBITDA was EUR 60.9 million.

 

 

Petri Helsky, President & CEO:

“Year 2021 has started well for Suominen. Our net sales increased to EUR 115.3 million (110.2) in the first quarter despite unfavorable currency rates thanks to continued strong demand of our products. Our quarterly comparable EBITDA (earnings before interest, taxes, depreciation and amortization) was record high and amounted to EUR 18.5 million (11.3). This was driven by the high sales volumes, supported by improved production and raw material efficiency and sales mix. As expected, raw material price inflation sped up significantly during the quarter, but the result impact will be fully visible in the coming months.  

 

The COVID-19 pandemic has increased consumption of nonwovens in all our markets and the demand is expected to continue on a high level. In the long term, COVID-19 may lead to a sustained increase in the use of nonwovens for cleaning and disinfection products. However, the risks related to the pandemic, such as possible shortages of raw materials, issues linked to logistics as well as potential closures of customers’ or our own plants due to virus infections or authority decisions remain relevant at least until there is broad enough vaccination coverage in the countries relevant to Suominen’s business. We have already been experiencing exceptional volatility in the cost and availability of raw materials and transportation.

 

The three investment projects supporting our strategy by strengthening our capabilities in sustainable products and increasing our capacity that were announced last year, two in Italy and one in the USA, are proceeding as planned and will be finalized during the second half of 2021.

 

During the quarter, we sold our minority share of Amerplast to Hanmere Polythene Ltd, a portfolio company of the UK private equity group Chiltern Capital. This impacted our net financial expenses positively by EUR 3.7 million and cash flow by EUR 11.6 million. The transaction will not have a material effect on Suominen’s result going forward.

 

Looking ahead, we see our sales remaining strong. However, we expect the increasing raw material and transportation costs to have an impact on our result, especially in the second quarter. We are working continuously to mitigate this and to safeguard our profitability. For the full year our outlook is unchanged.

 

The year has started off strong and we are in a good position to continue executing our strategy.”


NET SALES

In January–March 2021, Suominen’s net sales increased by 5% from the comparison period to EUR 115.3 million (110.2). Sales volumes increased and also sales prices improved slightly, supported by sales mix. The negative impact from currencies on net sales was EUR 8.1 million.

Suominen has two business areas, Americas and Europe. Net sales of the Americas business area were EUR 71.9 million (73.2) and net sales of the Europe business area were EUR 43.4 million (37.1).


EBITDA, OPERATING PROFIT AND RESULT

EBITDA (earnings before interest, taxes, depreciation and amortization) improved to EUR 18.5 million (11.3). This was driven by higher sales volumes, supported by improved production and raw material efficiency and sales mix. As expected, raw material price inflation sped up significantly during the quarter, but the result impact will be fully visible in the coming months. The negative impact from currencies on EBITDA was EUR 1.5 million.

 

Operating profit improved to EUR 13.6 million (5.7).


Profit before income taxes was EUR 16.9 million (3.7), and profit for the reporting period was EUR 13.8 million (3.5).  The sale of Amerplast impacted the result positively by EUR 3.7 million.

Corporate income taxes in the comparison period were positively impacted by the US tax reliefs enacted in the first quarter of 2020 as a result of the COVID-19 pandemic.

FINANCING

The Group’s net interest-bearing liabilities at nominal value amounted to EUR 20.2 million (59.3) at the end of the review period. The gearing ratio was 13.3% (43.7%) and the equity ratio 43.9% (43.1%).

In January–March, net financial expenses were EUR +3.3 million (-1.9), or 2.8% (-1.8%) of net sales. Fluctuations in exchange rates decreased the net financial items by EUR 0.7 million. In the comparison period the fluctuations in exchange rates increased the net financial items by EUR 0.7 million.

Suominen sold its minority share in Amerplast (Bright Maze Oy) in March. The transaction impacted Suominen’s net financial expenses positively by EUR 3.7 million. The amount consists of the gain on the sale of the shares as well as of the reversal of bad debt provisions recognized of the loan receivables. The effect on cash flow was EUR 11.6 million, consisting of the sales price of the shares and payment of the loan receivables and accrued interests.

Cash flow from operations was EUR 16.0 million (9.4), representing a cash flow per share of EUR 0.28 (0.16). The improvement in the cash flow from operations was mainly due to the improved result. An additional EUR 2.2 million was tied up in working capital (in Q1 2020: tied up additional EUR 0.9 million).

CAPITAL EXPENDITURE

The gross capital expenditure totaled EUR 5.2 million (0.8) and was mainly related to the growth investments at the Cressa plant in Italy and Bethune plant in the USA. The other investments were mainly normal maintenance investments.

Depreciation and amortization for the review period amounted to EUR 4.9 million (5.6).

IMPACTS OF THE COVID-19 PANDEMIC ON SUOMINEN

The health and safety of Suominen’s employees is our key priority. Suominen aims to secure the health and safety of its employees through several measures and is closely monitoring the COVID-19 situation. Thanks to our proactive approach, we have been able to serve our customers and run our operations.

As a nonwovens manufacturer Suominen is an integral part of the supply chain making disinfecting and cleaning products for fighting the coronavirus. The authorities have classified our nonwovens production as essential in the jurisdictions where other business activities have been shut down.

The pandemic has increased the demand for our products in all our markets and the demand is expected to continue on a high level. In the long term COVID-19 may lead to a sustained increase in the demand for nonwovens for cleaning and disinfection products.

Both Suominen’s financial position and cash flow have remained strong throughout the pandemic.

Risks related to COVID-19 are described in the short-term risk and uncertainties section.

 

PROGRESS IN SUSTAINABILITY

During the first quarter of 2021 we made progress in actions defined in our sustainability agenda.  

We have strong focus on safety and accident prevention, and our long-term target is to have zero lost time accidents. In the first quarter one LTA occurred at Suominen sites.

The employee-manager performance and development discussions, conducted in February-March, covered 97% of the white-collar employees. Our target is to develop and harmonize the performance and development process for our blue-collar employees globally.

We are committed to continuously improving our production efficiency and the efficient utilization of natural resources. In the first quarter we continued our active measures towards our targets to reduce energy consumption, greenhouse gas emissions, water consumption and waste to landfill by 20% per ton of product by 2025 compared to the base year of 2019.

We offer a comprehensive portfolio of sustainable nonwovens to our customers and we are continuously developing new and innovative solutions with a reduced environmental impact. Our target is a 50% increase in sales of sustainable nonwovens by 2025 compared to 2019, and to have at least 10 sustainable product launches per year. 

We launched our new Code of Conduct in the beginning of 2021 and a mandatory training program about the Code will be arranged to all employees later this year.

Suominen reports progress in its key sustainability KPIs annually.

As part of our Annual Report 2020 published on March 3, 2021 we reported on the progress of our sustainability performance. Our sustainability reporting in 2020 is in accordance with the Core option of the GRI Standards from the Global Reporting Initiative.

INFORMATION ON SHARES AND SHARE CAPITAL

Share capital

The number of Suominen’s registered shares was 58,259,219 shares on March 31, 2021, equaling to a share capital of EUR 11,860,056.00.

Share trading and price

The number of Suominen Corporation shares traded on Nasdaq Helsinki from January 1 to March 31, 2021 was 7,004,147 shares, accounting for 12.2% of the average number of shares (excluding treasury shares). The highest price was EUR 6.24, the lowest EUR 5.00 and the volume-weighted average price EUR 5.60. The closing price at the end of review period was EUR 5.74. The market capitalization (excluding treasury shares) was EUR 330.6 million on March 31, 2021.

Treasury shares

On March 31, 2021, Suominen Corporation held 660,055 treasury shares. As a share-based payment plan vested, in total 34,872 shares were transferred to the participants of the plan in February. In accordance with the decision made in the Annual General Meeting on March 25, 2021, 4,049 shares which were still in the joint account were transferred to Suominen Corporation’s treasury shares.

 

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 25, 2021 decided that 60% of the annual remuneration of the members of the Board of Directors is paid in cash and 40% in Suominen Corporation’s shares.

The number of shares forming the remuneration portion which is payable in shares will be 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 2021 of the company is published. The shares will be given out of the own shares held by the company by the decision of the Board of Directors by May 31, 2021 at the latest.

Share-based incentive plans for the management and key employees

The Group management and key employees participate in the company’s share-based long-term incentive plans. The plans are described in more details 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 2019-2021, 2020-2022 and 2021-2023. 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

2019–2021

2020–2022

2021-2023

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 2022

Will be paid partly in Suominen shares and partly in cash in spring 2023

Will be paid partly in Suominen shares and partly in cash in spring 2024

Participants

16 people

18 people

19 people

Maximum number of shares

546,000

756,500

470,000


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 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

Suominen also has a Matching Restricted Share Plan for selected key employees in the Suominen Group. The aim of the MRSP 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 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 can amount to a maximum total of 200,000 Suominen Corporation shares also including the proportion to be paid in cash.

The first vesting period of the Matching Restricted Share Plan ended in September 2020 and in total 9,352 shares were transferred to the participants.

ANNUAL GENERAL MEETING

The Annual General Meeting (AGM) of Suominen Corporation was held on March 25, 2021.

The AGM adopted the Financial Statements and the Consolidated Financial Statements for the financial year 2020 and discharged the members of the Board of Directors and the President & CEO from liability for the financial year 2020. The AGM approved the Remuneration Report for the governing bodies and the Board of Directors' proposals concerning forfeiture of the shares entered in a joint book-entry account and of the rights attached to such shares.

The AGM decided, in accordance with the proposal by the Board of Directors, that a dividend of EUR 0.10 and in addition, a return of capital of EUR 0.10 per share will be paid.

The AGM confirmed the remuneration of the Board of Directors remains unchanged. The Chair will be paid an annual fee of EUR 66,000 and the Deputy Chair and other Board members an annual fee of EUR 31,000. 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.

 

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). Mr. Andreas Ahlström, Mr. Björn Borgman, Ms. Nina Linander, Ms. Sari Pajari-Sederholm and Ms. Laura Raitio were re-elected as members of the Board. Mr. Jaakko Eskola was elected as a new member of the Board.

Mr. Jaakko Eskola was elected as the new Chair of the Board of Directors.

Ernst & Young Oy, Authorised Public Accountant firm, was re-elected as the auditor of the company for the next term of office in accordance with the Articles of Association. Ernst & Young Oy appointed Mr. Toni Halonen, Authorised Public Accountant, as the principally responsible auditor of the company.

The AGM authorized the Board of Directors to decide on the repurchase of the company’s own shares and to resolve on the issuance of shares and granting of options and the issuance of special rights entitling to shares. The terms and conditions of the authorization are explained later in this interim report.

Suominen published a stock exchange release on March 25, 2021 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 members can be viewed on Suominen’s website at www.suominen.fi.

In compliance with the resolution of the Annual General Meeting, on April 8, 2021 Suominen paid out dividends and return of capital in total of EUR 11.5 million for 2020, corresponding to EUR 0.20 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 and Laura Raitio were re-elected as members. Jaakko Eskola was elected as the Chair of the Personnel and Remuneration Committee and Björn Borgman and Sari Pajari-Sederholm were re-elected as members.

Authorizations of the Board of Directors

The Annual General Meeting (AGM) held on March 25, 2021 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, 2022 and it revokes all earlier authorizations to repurchase company’s own shares.

 

The Annual General Meeting (AGM) held on March 25, 2021 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, 2022.

 

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

Suominen Corporation received a notification on January 15, 2021 referred to Chapter 9, Section 5 and 6 of the Securities Market Act. According to the notification, the shareholding of companies controlled by Mr. Erkki Etola in Suominen Corporation has crossed the 15% flagging threshold.

 

Suominen Corporation received a notification on January 18, 2021 referred to Chapter 9, Section 5 and 6 of the Securities Market Act. According to the notification, the shareholding of Elo Mutual Pension Insurance Company in Suominen Corporation has fallen under the 5% flagging threshold.

SHORT TERM RISKS AND UNCERTAINTIES

The COVID-19 pandemic continues to cause uncertainty in Suominen’s business environment. The key risks related to the virus concern the health and safety of Suominen personnel and customers, possible shortages of raw materials and issues linked to logistics, as well as potential closures of customers’ or our own plants due to virus infections or authority decisions remain valid at least until there is broad enough vaccination coverage in the countries relevant to Suominen’s business.

We have implemented extensive precautions to protect the health and safety of our employees and to ensure business continuity and progress of our strategic projects during the pandemic. We continuously monitor the raw material situation closely and we have identified risk mitigation measures such as utilization of supplementary raw material sources. 

The vast majority of our customers have also experienced increased demand for their products and thus our customer credit risks have not materially increased. The COVID-19 pandemic has not increased Suominen’s risk of impairment losses on non-current assets.

Suominen’s other risks and uncertainties include, but are not limited to: risks related to manufacturing, competition, raw material prices and availability and customer specific volumes and credits, changes in legislation, political environment or economic conditions and investments, and financial risks.

A more detailed description of risks is available in Suominen’s Annual Report 2020 at suominen.fi/investors.

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.

The pandemic has increased consumption of nonwovens in all our markets and the demand is expected to continue on a high level. In the long term, COVID-19 may lead to a sustained increase in the use of nonwovens for cleaning and disinfection products. the risks related to the pandemic, such as possible shortages of raw materials, issues linked to logistics as well as potential closures of customers’ or our own plants due to virus infections or authority decisions remain relevant at least until there is broad enough vaccination coverage in the countries relevant to Suominen’s business. We have already been experiencing exceptional volatility in the cost and availability of raw materials and transportation.

OUTLOOK FOR 2021

Suominen expects that its comparable EBITDA (earnings before interest, taxes, depreciation and amortization) in 2021 will be in line with 2020. The demand for nonwovens is expected to remain strong, however volatility in the raw material and transportation markets has increased uncertainty and may impact the result negatively. In 2020, Suominen’s comparable EBITDA was EUR 60.9 million.

CORPORATE GOVERNANCE STATEMENT AND REMUNERATION REPORT

Suominen has prepared a separate Corporate Governance Statement and a Remuneration Report for

2020, which comply with the recommendations of the Finnish Corporate Governance Code for listed

companies. The statements also cover other central areas of corporate governance. The statements have been published on Suominen's website, separately from the Report of the Board of Directors, at www.suominen.fi

 

EVENTS AFTER THE REPORTING PERIOD

 

Suominen Corporation received on April 16, 2021 a notification referred to in Chapter 9, Section 5 and 6 of the Securities Market Act. According to the notification, the shareholding of Bolero Holdings SARL in Suominen Corporation has fallen below the 5% flagging threshold.

 

AUDIOCAST AND CONFERENCE CALL

Petri Helsky, President & CEO, and Toni Tamminen, CFO, will present the result in English in an audiocast and a conference call for analyst, investors and media on April 28, 2021 at 11:00 a.m. (EEST). The audiocast can be followed at  at https://suominen.videosync.fi/2021-q1-results. The recording of the audiocast and the presentation material will be available after the event at www.suominen.fi.

Conference call participants are requested to dial on:
Sweden: +46 856642651 

United Kingdom: +44 3333000804 

United States: +1 6319131422 

The confirmation code for joining the conference call is 18841110#

 

NEXT FINANCIAL REPORT

Suominen Corporation will publish its Half Year Report 2021 on August 12, 2021 approximately at 9:30 a.m. (EEST).

 

 

SUOMINEN GROUP 1.1–31.3.2021

The figures in these interim 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 interim report has not been audited.

This interim report has been prepared in accordance with the principles defined in IAS 34 Interim Financial Reporting. The principles for preparing the interim report are the same as those used for preparing the consolidated financial statements for 2020, with the exception of the effect of the new accounting standards and interpretations which have been applied from 1.1.2021.

The new or amended standards or interpretations applicable from 1.1.2021 are not material for Suominen Group.

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

       

EUR thousand

31.3.2021

31.3.2020

31.12.2020

Assets

     

Non-current assets

     

Goodwill

15,496

15,496

15,496

Intangible assets

15,925

19,151

16,748

Property, plant and equipment

110,050

116,181

104,666

Right-of-use assets

17,405

13,654

17,784

Loan receivables

3,650

3,978

Equity instruments

421

777

768

Other non-current receivables

69

65

73

Deferred tax assets

2,044

1,894

4,034

Total non-current assets

161,410

170,867

163,548

       

Current assets

     

Inventories

39,732

38,609

35,431

Trade receivables

55,432

54,661

51,128

Loan receivables

3,753

3,476

Other current receivables

6,256

4,954

5,675

Assets for current tax

2,168

1,739

247

Cash and cash equivalents

81,999

41,190

57,877

Total current assets

185,587

144,905

153,833

       

Total assets

346,997

315,772

317,381

       

Equity and liabilities

     

Equity

     

Share capital

11,860

11,860

11,860

Share premium account

24,681

24,681

24,681

Reserve for invested unrestricted equity

75,602

81,269

81,361

Treasury shares

-44

-44

Fair value and other reserves

-7

264

-7

Exchange differences

-10,100

499

-13,933

Retained earnings

50,192

17,339

41,962

Total equity attributable to owners of the parent

152,227

135,868

145,882

       

Liabilities

     

Non-current liabilities

     

Deferred tax liabilities

13,884

14,367

13,320

Liabilities from defined benefit plans

752

773

774

Non-current provisions

1,833

1,640

1,797

Non-current lease liabilities

14,642

9,834

14,892

Other non-current liabilities

17

17

17

Debentures

83,155

81,994

82,862

Total non-current liabilities

114,283

108,624

113,662

       

Current liabilities

     

Current provisions

270

250

Current lease liabilities

2,584

3,066

2,539

Other current interest-bearing liabilities

10,000

Liabilities for current tax

3,403

69

415

Trade payables and other current liabilities

74,230

58,145

54,634

Total current liabilities

80,487

71,280

57,838

       

Total liabilities

194,770

179,904

171,499

       

Total equity and liabilities

346,997

315,772

317,381

 

 

 

 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

 

EUR thousand

1-3/2021

1-3/2020

1-12/2020

Net sales

115,333

110,203

458,893

Cost of goods sold

-95,125

-96,914

-389,123

Gross profit

20,208

13,289

69,770

Other operating income

845

552

2,584

Sales, marketing and administration expenses

-6,622

-7,144

-27,946

Research and development expenses

-600

-680

-2,767

Other operating expenses

-238

-353

-2,150

Operating profit

13,592

5,664

39,492

Net financial expenses

3,266

-1,945

-5,582

Profit before income taxes

16,858

3,719

33,910

Income taxes

-3,085

-174

-3,794

Profit for the period

13,774

3,546

30,116

       

Earnings per share, EUR

     

Basic

0.24

0.06

0.52

Diluted

0.24

0.06

0.52

 

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

EUR thousand

1-3/2021

1-3/2020

1-12/2020

       

Profit for the period

13,774

3,546

30,116

       

Other comprehensive income:

     

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

     

Exchange differences

4,268

-468

-15,504

Reclassified to profit or loss

-327

Income taxes related to other comprehensive income

-436

259

929

Total

3,832

-208

-14,902

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

     

Fair value changes of equity instruments

-8

Remeasurements of defined benefit plans

-10

Income taxes related to other comprehensive income

3

Total

-15

       

Total other comprehensive income

3,832

-208

-14,917

       

Total comprehensive income for the period

17,606

3,337

15,199

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

 

EUR thousand

Share capital

Share premium account

Reserve for invested unrestricted equity

Treasury shares

Equity 1.1.2021

11,860

24,681

81,361

-44

Profit for the period

Other comprehensive income

Total comprehensive income

Share-based payments

Conveyance of treasury shares

44

Dividends and return of capital

-5,759

Equity 31.3.2021

11,860

24,681

75,602

 

 

EUR thousand

Exchange differences

Fair value and other reserves

Retained earnings

Total equity attributable to owners of the parent

Equity 1.1.2021

-13,933

-7

41,962

145,882

Profit for the period

13,774

13,774

Other comprehensive income

3,832

3,832

Total comprehensive income

3,832

13,774

17,606

Share-based payments

259

259

Conveyance of treasury shares

-44

Dividends and return of capital

-5,759

-11,519

Equity 31.3.2021

-10,100

-7

50,192

152,227

 

 

 

EUR thousand

Share capital

Share premium account

Reserve for invested unrestricted equity

Treasury shares

Equity 1.1.2020

11,860

24,681

81,269

-44

Profit / loss for the period

Other comprehensive income

Total comprehensive income

Share-based payments

Equity 31.3.2020

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 1.1.2020

707

264

13,715

132,452

Profit / loss for the period

3,546

3,546

Other comprehensive income

-208

-208

Total comprehensive income

-208

17,260

3,337

Share-based payments

79

79

Equity 31.3.2020

499

264

17,339

135,868

 

 

EUR thousand

Share capital

Share premium account

Reserve for invested unrestricted equity

Treasury shares

Equity 1.1.2020

11,860

24,681

81,269

-44

Profit for the period

Other comprehensive income

Total comprehensive income

Share-based payments

Conveyance of treasury shares

92

Dividends paid

Equity 31.12.2020

11,860

24,681

81,361

-44

 

 

EUR thousand

Exchange differences

Fair value and other reserves

Retained earnings

Total equity attributable to owners of the parent

Equity 1.1.2020

707

264

13,715

132,452

Profit for the period

30,116

30,116

Other comprehensive income

-14,640

-270

-7

-14,917

Total comprehensive income

-14,640

-270

30,109

15,199

Share-based payments

1,015

1,015

Conveyance of treasury shares

92

Dividends paid

-2,876

-2,876

Equity 31.12.2020

-13,933

-7

41,962

145,882

 

 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

 

EUR thousand

1-3/2021

1-3/2020

1-12/2020

       

Cash flow from operations

     

Profit for the period

13,774

3,546

30,116

Total adjustments to profit for the period

5,121

8,224

34,626

Cash flow before changes in net working capital

18,894

11,770

64,742

Change in net working capital

-2,157

-879

-1,023

Financial items

-283

-1,399

-4,289

Income taxes

-501

-82

-2,438

Cash flow from operations

15,954

9,410

56,991

       

Cash flow from investments

     

Investments in property, plant and equipment and intangible assets

-4,255

-1,666

-10,885

Sales proceeds from property, plant and equipment and intangible assets

12

Sales proceeds sale of equity investments

2,123

Cash flow from investments

-2,132

-1,666

-10,873

       

Cash flow from financing

     

Drawdown of non-current interest-bearing liabilities

Drawdown of current interest-bearing liabilities

10,000

15,000

Repayment of current interest-bearing liabilities

-638

-14,779

-31,968

Repayment in loan receivables

9,301

Dividends paid

-2,876

Cash flow from financing

8,663

-4,779

-19,845

       

Change in cash and cash equivalents

22,485

2,965

26,274

       

Cash and cash equivalents at the beginning of the period

57,877

37,741

37,741

Effect of changes in exchange rates

1,637

485

-6,138

Change in cash and cash equivalents

22,485

2,965

26,274

Cash and cash equivalents at the end of the period

81,999

41,190

57,877

 

 

KEY RATIOS

 

 

1-3/2021

1-3/2020

1-12/2020

Change in net sales, % *

4.7

0.4

11.5

Gross profit, as percentage of net sales, %

17.5

12.1

15.2

Comparable EBITDA, as percentage of net sales, %

16.1

10.2

13.3

Operating profit, as percentage of net sales, %

11.8

5.1

8.6

Net financial items, as percentage of net sales, %

2.8

-1.8

-1.2

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

14.6

3.4

7.4

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

11.9

3.2

6.6

Gross capital expenditure, EUR thousand

5,226

849

10,406

Depreciation and amortization, EUR thousand

4,942

5,618

21,432

Return on equity, rolling 12 months, %

28.1

2.0

21.6

Return on invested capital, rolling 12 months, %

19.8

4.8

16.7

Equity ratio, %

43.9

43.1

46.0

Gearing, %

13.3

43.7

25.4

Average number of personnel

703

678

689

Earnings per share, EUR, basic

0.24

0.06

0.52

Earnings per share, EUR, diluted

0.24

0.06

0.52

Cash flow from operations per share, EUR

0.28

0.16

0.99

Equity per share, EUR

2.64

2.36

2.53

Number of shares, end of period, excluding treasury shares

57,599,164

57,529,868

57,568,341

Share price, end of period, EUR

5.74

2.45

5.08

Share price, period low, EUR

5.00

2.00

2.00

Share price, period high, EUR

6.24

2.65

5.36

Volume weighted average price during the period, EUR

5.60

2.27

4.29

Market capitalization, EUR million

330.6

140.9

292.4

Number of traded shares during the period

7,004,147

1,404,870

12,937,753

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

12.2

2.4

22.5

 

 

 

 

31.3.2021

31.3.2020

31.12.2020

Interest-bearing net debt, EUR thousands

       

Non-current interest-bearing liabilities, nominal value

 

99,642

94,834

99,892

Current interest-bearing liabilities, nominal value

 

2,584

13,066

2,539

Interest-bearing receivables and cash and cash equivalents

 

-81,999

-48,593

-65,331

Interest-bearing net debt

 

20,227

59,307

37,101

 

 

*    Compared with the corresponding period in the previous year.

 

 

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 2020. The link between the components of the alternative performance measures and the consolidated financial statements is presented in Suominen’s Annual Report for 2020.

 

Calculation of key ratios per share

 

Earnings per share                                          

                                               

Basic earnings per share (EPS)

 

Profit for the period. net of tax

=

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

 

31.3.2021

31.3.2020

31.12.2020

Profit for the period

 

13,774

3,546

30,116

         
         

Average share-issue adjusted number of shares

 

57,581,245

57,529,868

57,549,842

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

 

57,912,920

57,609,586

57,796,591

         

Earnings per share

       
         

EUR

 

 

 

 

Basic

 

0.24

0.06

0.52

Diluted

 

0.24

0.06

0.52

 

 

 

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

 

 

 

 

 

31.3.2021

31.3.2020

31.12.2020

Cash flow from operations, EUR thousand

 

15,954

9,410

56,991

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

 

57,599,164

57,529,868

57,568,341

Cash flow from operations per share, EUR

 

0.28

0.16

0.99

 

 

           

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

 

 

                                                                                  

 

 

31.3.2021

31.3.2020

31.12.2020

Total equity attributable to owners of the parent, EUR thousand

 

152,227

135,868

145,882

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

 

57,599,164

57,529,868

57,568,341

Equity per share, EUR

 

2.64

2.36

2.53

 

 

Market capitalization

 

Market capitalization

=

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

 

 

 

31.3.2021

31.3.2020

31.12.2020

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

 

57,599,164

57,529,868

57,568,341

Share price at end of the period, EUR

5.74

2.45

5.08

Market capitalization, EUR million

 

330.6

140.9

292.4

 

 

 

Share turnover

 

Share turnover

=

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

 

 

 

31.3.2021

31.3.2020

31.12.2020

Number of shares traded during the period

 

7,004,147

1,404,870

12,937,753

Average number of shares excluding treasury shares

57,581,245

57,529,868

57,549,842

Share turnover, %

 

12.2

2.4

22.5

 

 

 

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 2021 or 2020.

 

EBITDA

 

EBITDA

=

EBIT + depreciation. amortization and impairment losses

 

EUR thousand

 

31.3.2021

31.3.2020

31.12.2020

Operating profit

 

13,592

5,664

39,492

+ Depreciation, amortization and impairment losses

4 942

5,618

21,432

EBITDA

 

18,534

11,282

60,924

 

 

Gross capital expenditure

 

EUR thousand

 

31.3.2021

31.3.2020

31.12.2020

Increases in intangible assets

 

19

21

306

Increases in property, plant and equipment

5,207

828

10,100

Gross capital expenditure

 

5,226

849

10,406

 

 

Interest-bearing net debt

 

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

 

Interest-bearing net debt

=

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

 

         

EUR thousand

 

31.3.2021

31.3.2020

31.12.2020

Interest-bearing liabilities

 

100,381

104,893

100,293

Tender and issuance costs of the debentures

 

1,845

3,006

2,138

Interest bearing receivables

 

-7,403

-7,454

Cash and cash equivalents

-81,999

-41,190

-57,877

Interest-bearing net debt

 

20,227

59,307

37,101

         

Interest-bearing liabilities

 

100,381

104,893

100,293

Tender and issuance costs of the debentures

 

1,845

3,006

2,138

Nominal value of interest-bearing liabilities

 

102,226

107,900

102,431

 

 

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

 

31.3.2021

31.3.2020

31.12.2020

Profit for the reporting period (rolling 12 months)

 

40,344

2,645

30,116

         

Total equity attributable to owners of the parent 31.3.2020 / 31.3.2019 / 31.12.2019

 

135,868

133,776

132,452

Total equity attributable to owners of the parent 30.6.2020 / 30.6.2019 / 31.3.2020

 

138,551

133,178

135,868

Total equity attributable to owners of the parent 30.9.2020 / 30.9.2021 / 30.6.2020

 

144,074

136,871

138,551

Total equity attributable to owners of the parent 31.12.2020/ 31.12.2019 / 30.9.2020

 

145,882

132,452

144,074

Total equity attributable to owners of the parent 31.3.2021 / 31.3.2020 / 31.12.2020

 

152,227

135,868

145,882

Average

 

143,320

134,429

139,365

         

Return on equity (ROE), %

 

28.1

2.0

21.6

 

 

Invested capital

 

Invested capital

=

Total equity + interest-bearing liabilities

 

EUR thousand

 

31.3.2021

31.3.2020

31.12.2020

Total equity attributable to owners of the parent

 

152,227

135,868

145,882

Interest-bearing liabilities

 

100,381

104,893

100,293

Invested capital

 

252,608

240,761

246,175

 

 

Return on invested capital (ROI). %

 

Return on invested capital (ROI). %

=

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

   

Invested capital. quarterly average

 

EUR thousand

 

31.3.2021

31.3.2020

31.12.2020

Operating profit (rolling 12 months)

 

47,420

10,832

39,492

Financial income (rolling 12 months)

 

858

1,005

925

Total

 

48,278

11,837

40,416

         

Invested capital 31.3.2020 / 31.3.2019 / 31.12.2019

 

240,761

250,259

241,615

Invested capital 30.6.2020 / 30.6.2019 / 31.3.2020

 

238,195

249,752

240,761

Invested capital 30.9.2020 / 30.9.2021 / 30.6.2020

 

240,368

246,660

238,195

Invested capital 31.12.2020/ 31.12.2019 / 30.9.2020

 

246,175

241,615

240,368

Invested capital 31.3.2021 / 31.3.2020 / 31.12.2020

 

252,608

240,761

246,175

Average

 

243,621

245,809

241,423

         

Return on invested capital (ROI), %

 

19.8

4.8

16.7

 

Financial income does not include fair value changes of assets at fair value through profit or loss.

 

 

Equity ratio. %

 

Equity ratio. %

=

Total equity attributable to owners of the parent x 100

 
   

Total assets - advances received

 

 

 

EUR thousand

 

31.3.2021

31.3.2020

31.12.2020

Total equity attributable to owners of the parent

 

152,227

135,868

145,882

         

Total assets

 

346,997

315,772

317,381

Advances received

 

-60

-313

-23

   

346,937

315,459

317,358

         

Equity ratio, %

 

43.9

43.1

46.0

 

 

Gearing. %

 

Gearing. %

=

Interest-bearing net debt x 100

 
   

Total equity attributable to owners of the parent

 

EUR thousand

 

31.3.2021

31.3.2020

31.12.2020

Interest-bearing net debt

 

20,227

59,307

37,101

Total equity attributable to owners of the parent

 

152,227

135,868

145,882

Gearing, %

 

13.3

43.7

25.4

 

 

 

 

NET SALES BY GEOGRAPHICAL MARKET AREA

EUR thousand

1-3/2021

1-3/2020

1-12/2020

Finland

780

804

3,180

Rest of Europe

41,472

34,919

156,060

North and South America

72,370

73,677

295,975

Rest of the world

711

803

3,678

Total

115,333

110,203

458,893

 

 

QUARTERLY SALES BY BUSINESS AREA

 

 

 

2021

2020

EUR thousand

1-3

10-12

7-9

4-6

1-3

Americas

71,904

66,829

71,947

77,162

73,170

Europe

43,432

44,276

43,542

45,047

37,054

Unallocated exchange differences and eliminations

-2

-19

-54

-38

-21

Total

115,333

111,086

115,435

122,170

110,203

 

 

QUARTERLY DEVELOPMENT

 

 

2021

2020

EUR thousand

1-3

10-12

7-9

4-6

1-3

Net sales

115,333

111,086

115,435

122,170

110,203

Comparable EBITDA

18,534

13,546

18,107

17,989

11,282

as % of net sales

16.1

12.2

15.7

14.7

10.2

EBITDA

18,534

13,546

18,107

17,989

11,282

as % of net sales

16.1

12.2

15.7

14.7

10.2

Items affecting comparability

Operating profit

13,592

8,530

12,907

12,391

5,664

as % of net sales

11.8

7.7

11.2

10.1

5.1

Net financial items

3,266

-64

-1,761

-1,813

-1,945

Profit before income taxes

16,858

8,466

11,146

10,579

3,719

as % of net sales

14.6

7.6

9.7

8.7

3.4

 

 

RELATED PARTY INFORMATION

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

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

 

One of Suominen’s share-based plans vested and shares were transferred to the participants of the plan in February. The President & CEO received 12,002 shares, and the value of the shares and portion settled in cash totaled EUR 128 thousand. The number of the shares transferred to other members of the Executive Team was 14,742 shares. The value of the shares and the portion settled in cash was EUR 146 thousand.

 

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

 

31.3.2021

31.3.2020

31.12.2020

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

104,666

16,748

121,584

20,020

121,584

20,020

Capital expenditure and increases

5,207

19

828

21

10,100

306

Depreciation, amortization and impairment losses

-3,284

-861

-3,822

-898

-14,354

-3,549

Exchange differences and other changes

3,461

19

-2,410

9

-12,664

-29

Carrying amount at the end of the period

110,050

15,925

116,181

19,151

104,666

16,748

 


Goodwill is not included in intangible assets.

 

 

31.3.2021

31.3.2020

31.12.2020

EUR thousand

Right-of-use assets

Right-of-use assets

Right-of-use assets

Carrying amount at the beginning of the period

17,784

14,319

14,319

Increases

91

145

7,410

Disposals and decreases

-11

-80

Depreciation, amortization and impairment losses

-797

-897

-3,530

Exchange differences and other changes

338

87

-335

Carrying amount at the end of the period

17,405

13,654

17,784

 

 


CHANGES IN INTEREST-BEARING LIABILITIES

EUR thousand

1-3/2021

1-3/2020

1-12/2020

Total interest-bearing liabilities at the beginning of the period

100,293

109,163

109,163

Current liabilities at the beginning of the period

2,539

16,986

16,986

Repayment of current liabilities, cash flow items

-638

-14,779

-31,968

Drawdown of current liabilities, cash flow items

10,000

15,000

Increases in current liabilities, non-cash flow items

29

66

276

Decreases of current liabilities, non-cash flow items

-13

-625

Reclassification from non-current liabilities

622

770

3,001

Exchange rate difference, non-cash flow item

44

23

-130

Current liabilities at the end of the period

2,584

13,066

2,539

       

Non-current liabilities at the beginning of the period

14,892

10,464

10,464

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

68

79

7,744

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

-4

-3

Reclassification to current liabilities

-622

-770

-3,001

Exchange rate difference, non-cash flow item

308

61

-312

Non-current liabilities at the end of the period

14,642

9,835

14,892

       

Non-current debentures at the beginning of the period

82,862

81,714

81,714

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

293

280

1,148

Non-current debentures at the end of the period

83,155

81,994

82,862

Total interest-bearing liabilities at the end of the period

100,381

104,893

100,293

 

 

CONTINGENT LIABILITIES

 

 

 

 

 

EUR thousand

31.3.2021

 

31.3.2020

31.12.2020

 

 

 

 

 

Other commitments

 

 

 

 

Rental obligations

124

 

181

104

Contractual commitments to acquire property, plant and equipment

4,442

 

6,586

Commitments to leases not yet commenced

117

 

34

 

 

 

 

 

Guarantees

 

 

 

 

On own behalf

3,922

 

8,492

4,317

Other own commitments

31,304

 

32,197

33,452

Total

35,226

 

40,689

37,769

 
NOMINAL AND FAIR VALUES OF DERIVATIVE INSTRUMENTS

 

 

31.3.2021

31.3.2020

31.12.2020

EUR thousand

Nominal value

Fair
value

Nominal
value

Fair
value

Nominal
value

Fair
value

Currency forward contracts

   

 

 

 

 

  Hedge accounting not applied

2,729

-66

4,431

-44

2,991

60

 

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

55,432

55,432

55,432

Interest and other financial receivables

340

340

340

Cash and cash equivalents

81,999

81,999

81,999

Total 31.3.2021

137,771

421

138,192

138,192

 

 

   

EUR thousand

a.

b.

c.

d.

e.

Equity instruments

347

421

768

768

Loan receivables

3,476

3,978

7,454

7,454

Trade receivables

51,128

51,128

51,128

Derivative receivables

61

61

61

Interest and other financial receivables

378

378

378

Cash and cash equivalents

57,877

57,877

57,877

Total 31.12.2020

3,885

113,360

421

117,666

117,666

 

Principles in estimating fair value of financial assets for 2021 are the same as those used for preparing the consolidated financial statements for 2020.

 

 

FINANCIAL LIABILITIES

 

31.3.2021

31.12.2020

EUR thousand

Carrying amount

Fair value

Nominal value

Carrying amount

Fair value

Nominal value

Non-current financial liabilities

           
             

Debentures

83,155

87,669

85,000

82,862

87,661

85,000

Lease liabilities

14,642

14,642

14,642

14,892

14,892

14,892

Total non-current financial liabilities

97,797

102,311

99,642

97,754

102,553

99,892

             

Current financial liabilities

           
             

Lease liabilities

2,584

2,584

2,584

2,539

2,539

2,539

Interest accruals

1,060

1,060

1,060

522

522

522

Derivative liabilities

66

66

66

1

1

1

Other current liabilities

639

639

639

552

552

552

Trade payables

51,134

51,134

51,134

42,024

42,024

42,024

Total current financial liabilities

55,484

55,484

55,484

45,639

45,639

45,639

             

Total

153,280

157,795

155,126

143,393

148,191

145,531

 

Principles in estimating fair value for financial liabilities for 2021 are the same as those used for preparing the consolidated financial statements for 2020.

 

 

FAIR VALUE MEASUREMENT HIERARCHY

EUR thousands

Level 1

Level 2

Level 3

Equity instruments

421

Total

421

       

Derivatives at fair value

     

Currency derivatives, liabilities

-66

Total

-66

 

Principles in estimating fair value of financial assets and their hierarchies for 2021 are the same as those used for preparing the consolidated financial statements for 2020.    

 

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

 

SUOMINEN CORPORATION
Board of Directors


For additional information, please contact:
Petri Helsky, President & CEO, tel. +358 10 214 3080
Toni Tamminen, CFO, tel. +358 10 214 3051

 

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 2020 were EUR 458.9 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

 

 

1-3/

1-3/

1-12/

 

2021

2020

2020

Net sales, EUR million

115.3

110.2

458.9

Comparable EBITDA

18.5

11.3

60.9

Comparable EBITDA, %

16.1

10.2

13.3

EBITDA

18.5

11.3

60.9

Operating profit, EUR million

13.6

5.7

39.5

Operating profit, %

11.8

5.1

8.6

Profit for the period, EUR million

13.8

3.5

30.1

Cash flow from operations, EUR million

16.0

9.4

57.0

Cash flow from operations per share, EUR

0.28

0.16

0.99

Earnings per share, basic, EUR

0.24

0.06

0.52

Return on invested capital, rolling 12 months, % 

19.8

4.8

16.7

Gearing, %

13.3

43.7

25.4

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

January–March 2021 in brief:

- Net sales increased by 5% and amounted to EUR 115.3 million (110.2). The negative impact from currencies on net sales was EUR 8.1 million

- Comparable EBITDA (earnings before interest, taxes, depreciation and amortization) improved significantly to EUR 18.5 million (11.3). The negative impact from currencies on EBITDA was EUR 1.5 million

- Cash flow from operations improved to EUR 16.0 million (9.4)

 

Outlook for 2021 unchanged


Suominen expects that its comparable EBITDA (earnings before interest, taxes, depreciation and amortization) in 2021 will be in line with 2020. The demand for nonwovens is expected to remain strong, however volatility in the raw material and transportation markets has increased uncertainty and may impact the result negatively. In 2020, Suominen’s comparable EBITDA was EUR 60.9 million.

 

 

Petri Helsky, President & CEO:

“Year 2021 has started well for Suominen. Our net sales increased to EUR 115.3 million (110.2) in the first quarter despite unfavorable currency rates thanks to continued strong demand of our products. Our quarterly comparable EBITDA (earnings before interest, taxes, depreciation and amortization) was record high and amounted to EUR 18.5 million (11.3). This was driven by the high sales volumes, supported by improved production and raw material efficiency and sales mix. As expected, raw material price inflation sped up significantly during the quarter, but the result impact will be fully visible in the coming months.  

 

The COVID-19 pandemic has increased consumption of nonwovens in all our markets and the demand is expected to continue on a high level. In the long term, COVID-19 may lead to a sustained increase in the use of nonwovens for cleaning and disinfection products. However, the risks related to the pandemic, such as possible shortages of raw materials, issues linked to logistics as well as potential closures of customers’ or our own plants due to virus infections or authority decisions remain relevant at least until there is broad enough vaccination coverage in the countries relevant to Suominen’s business. We have already been experiencing exceptional volatility in the cost and availability of raw materials and transportation.

 

The three investment projects supporting our strategy by strengthening our capabilities in sustainable products and increasing our capacity that were announced last year, two in Italy and one in the USA, are proceeding as planned and will be finalized during the second half of 2021.

 

During the quarter, we sold our minority share of Amerplast to Hanmere Polythene Ltd, a portfolio company of the UK private equity group Chiltern Capital. This impacted our net financial expenses positively by EUR 3.7 million and cash flow by EUR 11.6 million. The transaction will not have a material effect on Suominen’s result going forward.

 

Looking ahead, we see our sales remaining strong. However, we expect the increasing raw material and transportation costs to have an impact on our result, especially in the second quarter. We are working continuously to mitigate this and to safeguard our profitability. For the full year our outlook is unchanged.

 

The year has started off strong and we are in a good position to continue executing our strategy.”


NET SALES

In January–March 2021, Suominen’s net sales increased by 5% from the comparison period to EUR 115.3 million (110.2). Sales volumes increased and also sales prices improved slightly, supported by sales mix. The negative impact from currencies on net sales was EUR 8.1 million.

Suominen has two business areas, Americas and Europe. Net sales of the Americas business area were EUR 71.9 million (73.2) and net sales of the Europe business area were EUR 43.4 million (37.1).


EBITDA, OPERATING PROFIT AND RESULT

EBITDA (earnings before interest, taxes, depreciation and amortization) improved to EUR 18.5 million (11.3). This was driven by higher sales volumes, supported by improved production and raw material efficiency and sales mix. As expected, raw material price inflation sped up significantly during the quarter, but the result impact will be fully visible in the coming months. The negative impact from currencies on EBITDA was EUR 1.5 million.

 

Operating profit improved to EUR 13.6 million (5.7).


Profit before income taxes was EUR 16.9 million (3.7), and profit for the reporting period was EUR 13.8 million (3.5).  The sale of Amerplast impacted the result positively by EUR 3.7 million.

Corporate income taxes in the comparison period were positively impacted by the US tax reliefs enacted in the first quarter of 2020 as a result of the COVID-19 pandemic.

FINANCING

The Group’s net interest-bearing liabilities at nominal value amounted to EUR 20.2 million (59.3) at the end of the review period. The gearing ratio was 13.3% (43.7%) and the equity ratio 43.9% (43.1%).

In January–March, net financial expenses were EUR +3.3 million (-1.9), or 2.8% (-1.8%) of net sales. Fluctuations in exchange rates decreased the net financial items by EUR 0.7 million. In the comparison period the fluctuations in exchange rates increased the net financial items by EUR 0.7 million.

Suominen sold its minority share in Amerplast (Bright Maze Oy) in March. The transaction impacted Suominen’s net financial expenses positively by EUR 3.7 million. The amount consists of the gain on the sale of the shares as well as of the reversal of bad debt provisions recognized of the loan receivables. The effect on cash flow was EUR 11.6 million, consisting of the sales price of the shares and payment of the loan receivables and accrued interests.

Cash flow from operations was EUR 16.0 million (9.4), representing a cash flow per share of EUR 0.28 (0.16). The improvement in the cash flow from operations was mainly due to the improved result. An additional EUR 2.2 million was tied up in working capital (in Q1 2020: tied up additional EUR 0.9 million).

CAPITAL EXPENDITURE

The gross capital expenditure totaled EUR 5.2 million (0.8) and was mainly related to the growth investments at the Cressa plant in Italy and Bethune plant in the USA. The other investments were mainly normal maintenance investments.

Depreciation and amortization for the review period amounted to EUR 4.9 million (5.6).

IMPACTS OF THE COVID-19 PANDEMIC ON SUOMINEN

The health and safety of Suominen’s employees is our key priority. Suominen aims to secure the health and safety of its employees through several measures and is closely monitoring the COVID-19 situation. Thanks to our proactive approach, we have been able to serve our customers and run our operations.

As a nonwovens manufacturer Suominen is an integral part of the supply chain making disinfecting and cleaning products for fighting the coronavirus. The authorities have classified our nonwovens production as essential in the jurisdictions where other business activities have been shut down.

The pandemic has increased the demand for our products in all our markets and the demand is expected to continue on a high level. In the long term COVID-19 may lead to a sustained increase in the demand for nonwovens for cleaning and disinfection products.

Both Suominen’s financial position and cash flow have remained strong throughout the pandemic.

Risks related to COVID-19 are described in the short-term risk and uncertainties section.

 

PROGRESS IN SUSTAINABILITY

During the first quarter of 2021 we made progress in actions defined in our sustainability agenda.  

We have strong focus on safety and accident prevention, and our long-term target is to have zero lost time accidents. In the first quarter one LTA occurred at Suominen sites.

The employee-manager performance and development discussions, conducted in February-March, covered 97% of the white-collar employees. Our target is to develop and harmonize the performance and development process for our blue-collar employees globally.

We are committed to continuously improving our production efficiency and the efficient utilization of natural resources. In the first quarter we continued our active measures towards our targets to reduce energy consumption, greenhouse gas emissions, water consumption and waste to landfill by 20% per ton of product by 2025 compared to the base year of 2019.

We offer a comprehensive portfolio of sustainable nonwovens to our customers and we are continuously developing new and innovative solutions with a reduced environmental impact. Our target is a 50% increase in sales of sustainable nonwovens by 2025 compared to 2019, and to have at least 10 sustainable product launches per year. 

We launched our new Code of Conduct in the beginning of 2021 and a mandatory training program about the Code will be arranged to all employees later this year.

Suominen reports progress in its key sustainability KPIs annually.

As part of our Annual Report 2020 published on March 3, 2021 we reported on the progress of our sustainability performance. Our sustainability reporting in 2020 is in accordance with the Core option of the GRI Standards from the Global Reporting Initiative.

INFORMATION ON SHARES AND SHARE CAPITAL

Share capital

The number of Suominen’s registered shares was 58,259,219 shares on March 31, 2021, equaling to a share capital of EUR 11,860,056.00.

Share trading and price

The number of Suominen Corporation shares traded on Nasdaq Helsinki from January 1 to March 31, 2021 was 7,004,147 shares, accounting for 12.2% of the average number of shares (excluding treasury shares). The highest price was EUR 6.24, the lowest EUR 5.00 and the volume-weighted average price EUR 5.60. The closing price at the end of review period was EUR 5.74. The market capitalization (excluding treasury shares) was EUR 330.6 million on March 31, 2021.

Treasury shares

On March 31, 2021, Suominen Corporation held 660,055 treasury shares. As a share-based payment plan vested, in total 34,872 shares were transferred to the participants of the plan in February. In accordance with the decision made in the Annual General Meeting on March 25, 2021, 4,049 shares which were still in the joint account were transferred to Suominen Corporation’s treasury shares.

 

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 25, 2021 decided that 60% of the annual remuneration of the members of the Board of Directors is paid in cash and 40% in Suominen Corporation’s shares.

The number of shares forming the remuneration portion which is payable in shares will be 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 2021 of the company is published. The shares will be given out of the own shares held by the company by the decision of the Board of Directors by May 31, 2021 at the latest.

Share-based incentive plans for the management and key employees

The Group management and key employees participate in the company’s share-based long-term incentive plans. The plans are described in more details 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 2019-2021, 2020-2022 and 2021-2023. 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

2019–2021

2020–2022

2021-2023

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 2022

Will be paid partly in Suominen shares and partly in cash in spring 2023

Will be paid partly in Suominen shares and partly in cash in spring 2024

Participants

16 people

18 people

19 people

Maximum number of shares

546,000

756,500

470,000


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 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

Suominen also has a Matching Restricted Share Plan for selected key employees in the Suominen Group. The aim of the MRSP 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 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 can amount to a maximum total of 200,000 Suominen Corporation shares also including the proportion to be paid in cash.

The first vesting period of the Matching Restricted Share Plan ended in September 2020 and in total 9,352 shares were transferred to the participants.

ANNUAL GENERAL MEETING

The Annual General Meeting (AGM) of Suominen Corporation was held on March 25, 2021.

The AGM adopted the Financial Statements and the Consolidated Financial Statements for the financial year 2020 and discharged the members of the Board of Directors and the President & CEO from liability for the financial year 2020. The AGM approved the Remuneration Report for the governing bodies and the Board of Directors' proposals concerning forfeiture of the shares entered in a joint book-entry account and of the rights attached to such shares.

The AGM decided, in accordance with the proposal by the Board of Directors, that a dividend of EUR 0.10 and in addition, a return of capital of EUR 0.10 per share will be paid.

The AGM confirmed the remuneration of the Board of Directors remains unchanged. The Chair will be paid an annual fee of EUR 66,000 and the Deputy Chair and other Board members an annual fee of EUR 31,000. 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.

 

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). Mr. Andreas Ahlström, Mr. Björn Borgman, Ms. Nina Linander, Ms. Sari Pajari-Sederholm and Ms. Laura Raitio were re-elected as members of the Board. Mr. Jaakko Eskola was elected as a new member of the Board.

Mr. Jaakko Eskola was elected as the new Chair of the Board of Directors.

Ernst & Young Oy, Authorised Public Accountant firm, was re-elected as the auditor of the company for the next term of office in accordance with the Articles of Association. Ernst & Young Oy appointed Mr. Toni Halonen, Authorised Public Accountant, as the principally responsible auditor of the company.

The AGM authorized the Board of Directors to decide on the repurchase of the company’s own shares and to resolve on the issuance of shares and granting of options and the issuance of special rights entitling to shares. The terms and conditions of the authorization are explained later in this interim report.

Suominen published a stock exchange release on March 25, 2021 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 members can be viewed on Suominen’s website at www.suominen.fi.

In compliance with the resolution of the Annual General Meeting, on April 8, 2021 Suominen paid out dividends and return of capital in total of EUR 11.5 million for 2020, corresponding to EUR 0.20 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 and Laura Raitio were re-elected as members. Jaakko Eskola was elected as the Chair of the Personnel and Remuneration Committee and Björn Borgman and Sari Pajari-Sederholm were re-elected as members.

Authorizations of the Board of Directors

The Annual General Meeting (AGM) held on March 25, 2021 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, 2022 and it revokes all earlier authorizations to repurchase company’s own shares.

 

The Annual General Meeting (AGM) held on March 25, 2021 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, 2022.

 

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

Suominen Corporation received a notification on January 15, 2021 referred to Chapter 9, Section 5 and 6 of the Securities Market Act. According to the notification, the shareholding of companies controlled by Mr. Erkki Etola in Suominen Corporation has crossed the 15% flagging threshold.

 

Suominen Corporation received a notification on January 18, 2021 referred to Chapter 9, Section 5 and 6 of the Securities Market Act. According to the notification, the shareholding of Elo Mutual Pension Insurance Company in Suominen Corporation has fallen under the 5% flagging threshold.

SHORT TERM RISKS AND UNCERTAINTIES

The COVID-19 pandemic continues to cause uncertainty in Suominen’s business environment. The key risks related to the virus concern the health and safety of Suominen personnel and customers, possible shortages of raw materials and issues linked to logistics, as well as potential closures of customers’ or our own plants due to virus infections or authority decisions remain valid at least until there is broad enough vaccination coverage in the countries relevant to Suominen’s business.

We have implemented extensive precautions to protect the health and safety of our employees and to ensure business continuity and progress of our strategic projects during the pandemic. We continuously monitor the raw material situation closely and we have identified risk mitigation measures such as utilization of supplementary raw material sources. 

The vast majority of our customers have also experienced increased demand for their products and thus our customer credit risks have not materially increased. The COVID-19 pandemic has not increased Suominen’s risk of impairment losses on non-current assets.

Suominen’s other risks and uncertainties include, but are not limited to: risks related to manufacturing, competition, raw material prices and availability and customer specific volumes and credits, changes in legislation, political environment or economic conditions and investments, and financial risks.

A more detailed description of risks is available in Suominen’s Annual Report 2020 at suominen.fi/investors.

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.

The pandemic has increased consumption of nonwovens in all our markets and the demand is expected to continue on a high level. In the long term, COVID-19 may lead to a sustained increase in the use of nonwovens for cleaning and disinfection products. the risks related to the pandemic, such as possible shortages of raw materials, issues linked to logistics as well as potential closures of customers’ or our own plants due to virus infections or authority decisions remain relevant at least until there is broad enough vaccination coverage in the countries relevant to Suominen’s business. We have already been experiencing exceptional volatility in the cost and availability of raw materials and transportation.

OUTLOOK FOR 2021

Suominen expects that its comparable EBITDA (earnings before interest, taxes, depreciation and amortization) in 2021 will be in line with 2020. The demand for nonwovens is expected to remain strong, however volatility in the raw material and transportation markets has increased uncertainty and may impact the result negatively. In 2020, Suominen’s comparable EBITDA was EUR 60.9 million.

CORPORATE GOVERNANCE STATEMENT AND REMUNERATION REPORT

Suominen has prepared a separate Corporate Governance Statement and a Remuneration Report for

2020, which comply with the recommendations of the Finnish Corporate Governance Code for listed

companies. The statements also cover other central areas of corporate governance. The statements have been published on Suominen's website, separately from the Report of the Board of Directors, at www.suominen.fi

 

EVENTS AFTER THE REPORTING PERIOD

 

Suominen Corporation received on April 16, 2021 a notification referred to in Chapter 9, Section 5 and 6 of the Securities Market Act. According to the notification, the shareholding of Bolero Holdings SARL in Suominen Corporation has fallen below the 5% flagging threshold.

 

AUDIOCAST AND CONFERENCE CALL

Petri Helsky, President & CEO, and Toni Tamminen, CFO, will present the result in English in an audiocast and a conference call for analyst, investors and media on April 28, 2021 at 11:00 a.m. (EEST). The audiocast can be followed at  at https://suominen.videosync.fi/2021-q1-results. The recording of the audiocast and the presentation material will be available after the event at www.suominen.fi.

Conference call participants are requested to dial on:
Sweden: +46 856642651 

United Kingdom: +44 3333000804 

United States: +1 6319131422 

The confirmation code for joining the conference call is 18841110#

 

NEXT FINANCIAL REPORT

Suominen Corporation will publish its Half Year Report 2021 on August 12, 2021 approximately at 9:30 a.m. (EEST).

 

 

SUOMINEN GROUP 1.1–31.3.2021

The figures in these interim 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 interim report has not been audited.

This interim report has been prepared in accordance with the principles defined in IAS 34 Interim Financial Reporting. The principles for preparing the interim report are the same as those used for preparing the consolidated financial statements for 2020, with the exception of the effect of the new accounting standards and interpretations which have been applied from 1.1.2021.

The new or amended standards or interpretations applicable from 1.1.2021 are not material for Suominen Group.

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

       

EUR thousand

31.3.2021

31.3.2020

31.12.2020

Assets

     

Non-current assets

     

Goodwill

15,496

15,496

15,496

Intangible assets

15,925

19,151

16,748

Property, plant and equipment

110,050

116,181

104,666

Right-of-use assets

17,405

13,654

17,784

Loan receivables

3,650

3,978

Equity instruments

421

777

768

Other non-current receivables

69

65

73

Deferred tax assets

2,044

1,894

4,034

Total non-current assets

161,410

170,867

163,548

       

Current assets

     

Inventories

39,732

38,609

35,431

Trade receivables

55,432

54,661

51,128

Loan receivables

3,753

3,476

Other current receivables

6,256

4,954

5,675

Assets for current tax

2,168

1,739

247

Cash and cash equivalents

81,999

41,190

57,877

Total current assets

185,587

144,905

153,833

       

Total assets

346,997

315,772

317,381

       

Equity and liabilities

     

Equity

     

Share capital

11,860

11,860

11,860

Share premium account

24,681

24,681

24,681

Reserve for invested unrestricted equity

75,602

81,269

81,361

Treasury shares

-44

-44

Fair value and other reserves

-7

264

-7

Exchange differences

-10,100

499

-13,933

Retained earnings

50,192

17,339

41,962

Total equity attributable to owners of the parent

152,227

135,868

145,882

       

Liabilities

     

Non-current liabilities

     

Deferred tax liabilities

13,884

14,367

13,320

Liabilities from defined benefit plans

752

773

774

Non-current provisions

1,833

1,640

1,797

Non-current lease liabilities

14,642

9,834

14,892

Other non-current liabilities

17

17

17

Debentures

83,155

81,994

82,862

Total non-current liabilities

114,283

108,624

113,662

       

Current liabilities

     

Current provisions

270

250

Current lease liabilities

2,584

3,066

2,539

Other current interest-bearing liabilities

10,000

Liabilities for current tax

3,403

69

415

Trade payables and other current liabilities

74,230

58,145

54,634

Total current liabilities

80,487

71,280

57,838

       

Total liabilities

194,770

179,904

171,499

       

Total equity and liabilities

346,997

315,772

317,381

 

 

 

 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

 

EUR thousand

1-3/2021

1-3/2020

1-12/2020

Net sales

115,333

110,203

458,893

Cost of goods sold

-95,125

-96,914

-389,123

Gross profit

20,208

13,289

69,770

Other operating income

845

552

2,584

Sales, marketing and administration expenses

-6,622

-7,144

-27,946

Research and development expenses

-600

-680

-2,767

Other operating expenses

-238

-353

-2,150

Operating profit

13,592

5,664

39,492

Net financial expenses

3,266

-1,945

-5,582

Profit before income taxes

16,858

3,719

33,910

Income taxes

-3,085

-174

-3,794

Profit for the period

13,774

3,546

30,116

       

Earnings per share, EUR

     

Basic

0.24

0.06

0.52

Diluted

0.24

0.06

0.52

 

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

EUR thousand

1-3/2021

1-3/2020

1-12/2020

       

Profit for the period

13,774

3,546

30,116

       

Other comprehensive income:

     

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

     

Exchange differences

4,268

-468

-15,504

Reclassified to profit or loss

-327

Income taxes related to other comprehensive income

-436

259

929

Total

3,832

-208

-14,902

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

     

Fair value changes of equity instruments

-8

Remeasurements of defined benefit plans

-10

Income taxes related to other comprehensive income

3

Total

-15

       

Total other comprehensive income

3,832

-208

-14,917

       

Total comprehensive income for the period

17,606

3,337

15,199

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

 

EUR thousand

Share capital

Share premium account

Reserve for invested unrestricted equity

Treasury shares

Equity 1.1.2021

11,860

24,681

81,361

-44

Profit for the period

Other comprehensive income

Total comprehensive income

Share-based payments

Conveyance of treasury shares

44

Dividends and return of capital

-5,759

Equity 31.3.2021

11,860

24,681

75,602

 

 

EUR thousand

Exchange differences

Fair value and other reserves

Retained earnings

Total equity attributable to owners of the parent

Equity 1.1.2021

-13,933

-7

41,962

145,882

Profit for the period

13,774

13,774

Other comprehensive income

3,832

3,832

Total comprehensive income

3,832

13,774

17,606

Share-based payments

259

259

Conveyance of treasury shares

-44

Dividends and return of capital

-5,759

-11,519

Equity 31.3.2021

-10,100

-7

50,192

152,227

 

 

 

EUR thousand

Share capital

Share premium account

Reserve for invested unrestricted equity

Treasury shares

Equity 1.1.2020

11,860

24,681

81,269

-44

Profit / loss for the period

Other comprehensive income

Total comprehensive income

Share-based payments

Equity 31.3.2020

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 1.1.2020

707

264

13,715

132,452

Profit / loss for the period

3,546

3,546

Other comprehensive income

-208

-208

Total comprehensive income

-208

17,260

3,337

Share-based payments

79

79

Equity 31.3.2020

499

264

17,339

135,868

 

 

EUR thousand

Share capital

Share premium account

Reserve for invested unrestricted equity

Treasury shares

Equity 1.1.2020

11,860

24,681

81,269

-44

Profit for the period

Other comprehensive income

Total comprehensive income

Share-based payments

Conveyance of treasury shares

92

Dividends paid

Equity 31.12.2020

11,860

24,681

81,361

-44

 

 

EUR thousand

Exchange differences

Fair value and other reserves

Retained earnings

Total equity attributable to owners of the parent

Equity 1.1.2020

707

264

13,715

132,452

Profit for the period

30,116

30,116

Other comprehensive income

-14,640

-270

-7

-14,917

Total comprehensive income

-14,640

-270

30,109

15,199

Share-based payments

1,015

1,015

Conveyance of treasury shares

92

Dividends paid

-2,876

-2,876

Equity 31.12.2020

-13,933

-7

41,962

145,882

 

 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

 

EUR thousand

1-3/2021

1-3/2020

1-12/2020

       

Cash flow from operations

     

Profit for the period

13,774

3,546

30,116

Total adjustments to profit for the period

5,121

8,224

34,626

Cash flow before changes in net working capital

18,894

11,770

64,742

Change in net working capital

-2,157

-879

-1,023

Financial items

-283

-1,399

-4,289

Income taxes

-501

-82

-2,438

Cash flow from operations

15,954

9,410

56,991

       

Cash flow from investments

     

Investments in property, plant and equipment and intangible assets

-4,255

-1,666

-10,885

Sales proceeds from property, plant and equipment and intangible assets

12

Sales proceeds sale of equity investments

2,123

Cash flow from investments

-2,132

-1,666

-10,873

       

Cash flow from financing

     

Drawdown of non-current interest-bearing liabilities

Drawdown of current interest-bearing liabilities

10,000

15,000

Repayment of current interest-bearing liabilities

-638

-14,779

-31,968

Repayment in loan receivables

9,301

Dividends paid

-2,876

Cash flow from financing

8,663

-4,779

-19,845

       

Change in cash and cash equivalents

22,485

2,965

26,274

       

Cash and cash equivalents at the beginning of the period

57,877

37,741

37,741

Effect of changes in exchange rates

1,637

485

-6,138

Change in cash and cash equivalents

22,485

2,965

26,274

Cash and cash equivalents at the end of the period

81,999

41,190

57,877

 

 

KEY RATIOS

 

 

1-3/2021

1-3/2020

1-12/2020

Change in net sales, % *

4.7

0.4

11.5

Gross profit, as percentage of net sales, %

17.5

12.1

15.2

Comparable EBITDA, as percentage of net sales, %

16.1

10.2

13.3

Operating profit, as percentage of net sales, %

11.8

5.1

8.6

Net financial items, as percentage of net sales, %

2.8

-1.8

-1.2

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

14.6

3.4

7.4

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

11.9

3.2

6.6

Gross capital expenditure, EUR thousand

5,226

849

10,406

Depreciation and amortization, EUR thousand

4,942

5,618

21,432

Return on equity, rolling 12 months, %

28.1

2.0

21.6

Return on invested capital, rolling 12 months, %

19.8

4.8

16.7

Equity ratio, %

43.9

43.1

46.0

Gearing, %

13.3

43.7

25.4

Average number of personnel

703

678

689

Earnings per share, EUR, basic

0.24

0.06

0.52

Earnings per share, EUR, diluted

0.24

0.06

0.52

Cash flow from operations per share, EUR

0.28

0.16

0.99

Equity per share, EUR

2.64

2.36

2.53

Number of shares, end of period, excluding treasury shares

57,599,164

57,529,868

57,568,341

Share price, end of period, EUR

5.74

2.45

5.08

Share price, period low, EUR

5.00

2.00

2.00

Share price, period high, EUR

6.24

2.65

5.36

Volume weighted average price during the period, EUR

5.60

2.27

4.29

Market capitalization, EUR million

330.6

140.9

292.4

Number of traded shares during the period

7,004,147

1,404,870

12,937,753

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

12.2

2.4

22.5

 

 

 

 

31.3.2021

31.3.2020

31.12.2020

Interest-bearing net debt, EUR thousands

       

Non-current interest-bearing liabilities, nominal value

 

99,642

94,834

99,892

Current interest-bearing liabilities, nominal value

 

2,584

13,066

2,539

Interest-bearing receivables and cash and cash equivalents

 

-81,999

-48,593

-65,331

Interest-bearing net debt

 

20,227

59,307

37,101

 

 

*    Compared with the corresponding period in the previous year.

 

 

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 2020. The link between the components of the alternative performance measures and the consolidated financial statements is presented in Suominen’s Annual Report for 2020.

 

Calculation of key ratios per share

 

Earnings per share                                          

                                               

Basic earnings per share (EPS)

 

Profit for the period. net of tax

=

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

 

31.3.2021

31.3.2020

31.12.2020

Profit for the period

 

13,774

3,546

30,116

         
         

Average share-issue adjusted number of shares

 

57,581,245

57,529,868

57,549,842

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

 

57,912,920

57,609,586

57,796,591

         

Earnings per share

       
         

EUR

 

 

 

 

Basic

 

0.24

0.06

0.52

Diluted

 

0.24

0.06

0.52

 

 

 

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

 

 

 

 

 

31.3.2021

31.3.2020

31.12.2020

Cash flow from operations, EUR thousand

 

15,954

9,410

56,991

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

 

57,599,164

57,529,868

57,568,341

Cash flow from operations per share, EUR

 

0.28

0.16

0.99

 

 

           

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

 

 

                                                                                  

 

 

31.3.2021

31.3.2020

31.12.2020

Total equity attributable to owners of the parent, EUR thousand

 

152,227

135,868

145,882

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

 

57,599,164

57,529,868

57,568,341

Equity per share, EUR

 

2.64

2.36

2.53

 

 

Market capitalization

 

Market capitalization

=

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

 

 

 

31.3.2021

31.3.2020

31.12.2020

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

 

57,599,164

57,529,868

57,568,341

Share price at end of the period, EUR

5.74

2.45

5.08

Market capitalization, EUR million

 

330.6

140.9

292.4

 

 

 

Share turnover

 

Share turnover

=

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

 

 

 

31.3.2021

31.3.2020

31.12.2020

Number of shares traded during the period

 

7,004,147

1,404,870

12,937,753

Average number of shares excluding treasury shares

57,581,245

57,529,868

57,549,842

Share turnover, %

 

12.2

2.4

22.5

 

 

 

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 2021 or 2020.

 

EBITDA

 

EBITDA

=

EBIT + depreciation. amortization and impairment losses

 

EUR thousand

 

31.3.2021

31.3.2020

31.12.2020

Operating profit

 

13,592

5,664

39,492

+ Depreciation, amortization and impairment losses

4 942

5,618

21,432

EBITDA

 

18,534

11,282

60,924

 

 

Gross capital expenditure

 

EUR thousand

 

31.3.2021

31.3.2020

31.12.2020

Increases in intangible assets

 

19

21

306

Increases in property, plant and equipment

5,207

828

10,100

Gross capital expenditure

 

5,226

849

10,406

 

 

Interest-bearing net debt

 

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

 

Interest-bearing net debt

=

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

 

         

EUR thousand

 

31.3.2021

31.3.2020

31.12.2020

Interest-bearing liabilities

 

100,381

104,893

100,293

Tender and issuance costs of the debentures

 

1,845

3,006

2,138

Interest bearing receivables

 

-7,403

-7,454

Cash and cash equivalents

-81,999

-41,190

-57,877

Interest-bearing net debt

 

20,227

59,307

37,101

         

Interest-bearing liabilities

 

100,381

104,893

100,293

Tender and issuance costs of the debentures

 

1,845

3,006

2,138

Nominal value of interest-bearing liabilities

 

102,226

107,900

102,431

 

 

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

 

31.3.2021

31.3.2020

31.12.2020

Profit for the reporting period (rolling 12 months)

 

40,344

2,645

30,116

         

Total equity attributable to owners of the parent 31.3.2020 / 31.3.2019 / 31.12.2019

 

135,868

133,776

132,452

Total equity attributable to owners of the parent 30.6.2020 / 30.6.2019 / 31.3.2020

 

138,551

133,178

135,868

Total equity attributable to owners of the parent 30.9.2020 / 30.9.2021 / 30.6.2020

 

144,074

136,871

138,551

Total equity attributable to owners of the parent 31.12.2020/ 31.12.2019 / 30.9.2020

 

145,882

132,452

144,074

Total equity attributable to owners of the parent 31.3.2021 / 31.3.2020 / 31.12.2020

 

152,227

135,868

145,882

Average

 

143,320

134,429

139,365

         

Return on equity (ROE), %

 

28.1

2.0

21.6

 

 

Invested capital

 

Invested capital

=

Total equity + interest-bearing liabilities

 

EUR thousand

 

31.3.2021

31.3.2020

31.12.2020

Total equity attributable to owners of the parent

 

152,227

135,868

145,882

Interest-bearing liabilities

 

100,381

104,893

100,293

Invested capital

 

252,608

240,761

246,175

 

 

Return on invested capital (ROI). %

 

Return on invested capital (ROI). %

=

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

   

Invested capital. quarterly average

 

EUR thousand

 

31.3.2021

31.3.2020

31.12.2020

Operating profit (rolling 12 months)

 

47,420

10,832

39,492

Financial income (rolling 12 months)

 

858

1,005

925

Total

 

48,278

11,837

40,416

         

Invested capital 31.3.2020 / 31.3.2019 / 31.12.2019

 

240,761

250,259

241,615

Invested capital 30.6.2020 / 30.6.2019 / 31.3.2020

 

238,195

249,752

240,761

Invested capital 30.9.2020 / 30.9.2021 / 30.6.2020

 

240,368

246,660

238,195

Invested capital 31.12.2020/ 31.12.2019 / 30.9.2020

 

246,175

241,615

240,368

Invested capital 31.3.2021 / 31.3.2020 / 31.12.2020

 

252,608

240,761

246,175

Average

 

243,621

245,809

241,423

         

Return on invested capital (ROI), %

 

19.8

4.8

16.7

 

Financial income does not include fair value changes of assets at fair value through profit or loss.

 

 

Equity ratio. %

 

Equity ratio. %

=

Total equity attributable to owners of the parent x 100

 
   

Total assets - advances received

 

 

 

EUR thousand

 

31.3.2021

31.3.2020

31.12.2020

Total equity attributable to owners of the parent

 

152,227

135,868

145,882

         

Total assets

 

346,997

315,772

317,381

Advances received

 

-60

-313

-23

   

346,937

315,459

317,358

         

Equity ratio, %

 

43.9

43.1

46.0

 

 

Gearing. %

 

Gearing. %

=

Interest-bearing net debt x 100

 
   

Total equity attributable to owners of the parent

 

EUR thousand

 

31.3.2021

31.3.2020

31.12.2020

Interest-bearing net debt

 

20,227

59,307

37,101

Total equity attributable to owners of the parent

 

152,227

135,868

145,882

Gearing, %

 

13.3

43.7

25.4

 

 

 

 

NET SALES BY GEOGRAPHICAL MARKET AREA

EUR thousand

1-3/2021

1-3/2020

1-12/2020

Finland

780

804

3,180

Rest of Europe

41,472

34,919

156,060

North and South America

72,370

73,677

295,975

Rest of the world

711

803

3,678

Total

115,333

110,203

458,893

 

 

QUARTERLY SALES BY BUSINESS AREA

 

 

 

2021

2020

EUR thousand

1-3

10-12

7-9

4-6

1-3

Americas

71,904

66,829

71,947

77,162

73,170

Europe

43,432

44,276

43,542

45,047

37,054

Unallocated exchange differences and eliminations

-2

-19

-54

-38

-21

Total

115,333

111,086

115,435

122,170

110,203

 

 

QUARTERLY DEVELOPMENT

 

 

2021

2020

EUR thousand

1-3

10-12

7-9

4-6

1-3

Net sales

115,333

111,086

115,435

122,170

110,203

Comparable EBITDA

18,534

13,546

18,107

17,989

11,282

as % of net sales

16.1

12.2

15.7

14.7

10.2

EBITDA

18,534

13,546

18,107

17,989

11,282

as % of net sales

16.1

12.2

15.7

14.7

10.2

Items affecting comparability

Operating profit

13,592

8,530

12,907

12,391

5,664

as % of net sales

11.8

7.7

11.2

10.1

5.1

Net financial items

3,266

-64

-1,761

-1,813

-1,945

Profit before income taxes

16,858

8,466

11,146

10,579

3,719

as % of net sales

14.6

7.6

9.7

8.7

3.4

 

 

RELATED PARTY INFORMATION

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

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

 

One of Suominen’s share-based plans vested and shares were transferred to the participants of the plan in February. The President & CEO received 12,002 shares, and the value of the shares and portion settled in cash totaled EUR 128 thousand. The number of the shares transferred to other members of the Executive Team was 14,742 shares. The value of the shares and the portion settled in cash was EUR 146 thousand.

 

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

 

31.3.2021

31.3.2020

31.12.2020

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

104,666

16,748

121,584

20,020

121,584

20,020

Capital expenditure and increases

5,207

19

828

21

10,100

306

Depreciation, amortization and impairment losses

-3,284

-861

-3,822

-898

-14,354

-3,549

Exchange differences and other changes

3,461

19

-2,410

9

-12,664

-29

Carrying amount at the end of the period

110,050

15,925

116,181

19,151

104,666

16,748

 


Goodwill is not included in intangible assets.

 

 

31.3.2021

31.3.2020

31.12.2020

EUR thousand

Right-of-use assets

Right-of-use assets

Right-of-use assets

Carrying amount at the beginning of the period

17,784

14,319

14,319

Increases

91

145

7,410

Disposals and decreases

-11

-80

Depreciation, amortization and impairment losses

-797

-897

-3,530

Exchange differences and other changes

338

87

-335

Carrying amount at the end of the period

17,405

13,654

17,784

 

 


CHANGES IN INTEREST-BEARING LIABILITIES

EUR thousand

1-3/2021

1-3/2020

1-12/2020

Total interest-bearing liabilities at the beginning of the period

100,293

109,163

109,163

Current liabilities at the beginning of the period

2,539

16,986

16,986

Repayment of current liabilities, cash flow items

-638

-14,779

-31,968

Drawdown of current liabilities, cash flow items

10,000

15,000

Increases in current liabilities, non-cash flow items

29

66

276

Decreases of current liabilities, non-cash flow items

-13

-625

Reclassification from non-current liabilities

622

770

3,001

Exchange rate difference, non-cash flow item

44

23

-130

Current liabilities at the end of the period

2,584

13,066

2,539

       

Non-current liabilities at the beginning of the period

14,892

10,464

10,464

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

68

79

7,744

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

-4

-3

Reclassification to current liabilities

-622

-770

-3,001

Exchange rate difference, non-cash flow item

308

61

-312

Non-current liabilities at the end of the period

14,642

9,835

14,892

       

Non-current debentures at the beginning of the period

82,862

81,714

81,714

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

293

280

1,148

Non-current debentures at the end of the period

83,155

81,994

82,862

Total interest-bearing liabilities at the end of the period

100,381

104,893

100,293

 

 

CONTINGENT LIABILITIES

 

 

 

 

 

EUR thousand

31.3.2021

 

31.3.2020

31.12.2020

 

 

 

 

 

Other commitments

 

 

 

 

Rental obligations

124

 

181

104

Contractual commitments to acquire property, plant and equipment

4,442

 

6,586

Commitments to leases not yet commenced

117

 

34

 

 

 

 

 

Guarantees

 

 

 

 

On own behalf

3,922

 

8,492

4,317

Other own commitments

31,304

 

32,197

33,452

Total

35,226

 

40,689

37,769

 
NOMINAL AND FAIR VALUES OF DERIVATIVE INSTRUMENTS

 

 

31.3.2021

31.3.2020

31.12.2020

EUR thousand

Nominal value

Fair
value

Nominal
value

Fair
value

Nominal
value

Fair
value

Currency forward contracts

   

 

 

 

 

  Hedge accounting not applied

2,729

-66

4,431

-44

2,991

60

 

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

55,432

55,432

55,432

Interest and other financial receivables

340

340

340

Cash and cash equivalents

81,999

81,999

81,999

Total 31.3.2021

137,771

421

138,192

138,192

 

 

   

EUR thousand

a.

b.

c.

d.

e.

Equity instruments

347

421

768

768

Loan receivables

3,476

3,978

7,454

7,454

Trade receivables

51,128

51,128

51,128

Derivative receivables

61

61

61

Interest and other financial receivables

378

378

378

Cash and cash equivalents

57,877

57,877

57,877

Total 31.12.2020

3,885

113,360

421

117,666

117,666

 

Principles in estimating fair value of financial assets for 2021 are the same as those used for preparing the consolidated financial statements for 2020.

 

 

FINANCIAL LIABILITIES

 

31.3.2021

31.12.2020

EUR thousand

Carrying amount

Fair value

Nominal value

Carrying amount

Fair value

Nominal value

Non-current financial liabilities

           
             

Debentures

83,155

87,669

85,000

82,862

87,661

85,000

Lease liabilities

14,642

14,642

14,642

14,892

14,892

14,892

Total non-current financial liabilities

97,797

102,311

99,642

97,754

102,553

99,892

             

Current financial liabilities

           
             

Lease liabilities

2,584

2,584

2,584

2,539

2,539

2,539

Interest accruals

1,060

1,060

1,060

522

522

522

Derivative liabilities

66

66

66

1

1

1

Other current liabilities

639

639

639

552

552

552

Trade payables

51,134

51,134

51,134

42,024

42,024

42,024

Total current financial liabilities

55,484

55,484

55,484

45,639

45,639

45,639

             

Total

153,280

157,795

155,126

143,393

148,191

145,531

 

Principles in estimating fair value for financial liabilities for 2021 are the same as those used for preparing the consolidated financial statements for 2020.

 

 

FAIR VALUE MEASUREMENT HIERARCHY

EUR thousands

Level 1

Level 2

Level 3

Equity instruments

421

Total

421

       

Derivatives at fair value

     

Currency derivatives, liabilities

-66

Total

-66

 

Principles in estimating fair value of financial assets and their hierarchies for 2021 are the same as those used for preparing the consolidated financial statements for 2020.    

 

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

 

SUOMINEN CORPORATION
Board of Directors


For additional information, please contact:
Petri Helsky, President & CEO, tel. +358 10 214 3080
Toni Tamminen, CFO, tel. +358 10 214 3051

 

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 2020 were EUR 458.9 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

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