Highlights in July-September 2015:
- Net sales increased by 11.3% and amounted to EUR 114.9 million (103.3).
- Operating profit excluding non-recurring items increased by 12.1% to EUR 9.8 million (8.7).
- Suominen’s investment in a new wetlaid line at the Bethune plant in SC, US, is progressing as planned. In September, Suominen announced that the total value of the investment will be close to EUR 50 million.
- Suominen decided to extend its growth investment program for the strategic period of 2015–2017 to approximately EUR 60 million due to the promising growth prospects in the high value added nonwovens.
- Suominen specifies its guidance regarding operating profit for 2015. The company expects that for the full year 2015, operating profit from continuing operations excluding non-recurring items will improve markedly from year 2014. Previously, Suominen estimated that for the full year 2015, its operating profit excluding non-recurring items from continuing operations would improve from year 2014.
- For net sales, Suominen repeats its previous estimate, disclosed on 17 July 2015, that for the full year 2015 the company expects its net sales for continuing operations to improve from year 2014.
- Suominen’s net sales of the continuing operations in 2014 amounted to EUR 401.8 million and operating profit excluding non-recurring items was EUR 26.9 million.
President & CEO Nina Kopola comments on Suominen’s third quarter of 2015:
“In the euro area, the consumer confidence index decreased slightly in the third quarter but was still on a significantly higher level than at the beginning of the year. In the United States, the consumer confidence index increased somewhat. North America and Europe are Suominen’s largest market areas.
Suominen’s strong financial development continued in Q3. Net sales grew by 11% from the comparison period to EUR 114.9 million. Operating profit excluding non-recurring items rose to EUR 9.8 million, corresponding to 8.5% of net sales. Profit as well as earnings per share for Q3 continued at the strong level of the second quarter and were EUR 5.4 million and EUR 0.02, respectively. So far, I am very pleased with Suominen’s development in 2015 and feel confident also about the final quarter of the year. We specified our guidance regarding the growth of operating profit, and now estimate that for the full year 2015, operating profit from continuing operations excluding non-recurring items will improve markedly from year 2014. Previously, we estimated that operating profit excluding non-recurring items would improve from year 2014.
In September, we decided to extend our growth investment program to approximately EUR 60 million due to the promising growth prospects in nonwovens with higher added value. Earlier, we had estimated that we will spend EUR 30–50 million in growth investments during the strategic period of 2015–2017. At the same occasion, we stated that the total value of our investment in a new wetlaid line at the Bethune plant in SC, US, including both equipment and facilities, will be close to EUR 50 million. The new production line will be tailor-made, based on our unique nonwovens technology expertise, enabling us to supply our customers with exclusive, best-in-class nonwoven products for wiping, medical and hygiene applications. The investment is in line with our strategic intent to achieve both product leadership in our industry and a net sales growth rate that exceeds the industry average.
Moreover, the other projects in our growth investment program are progressing as planned and will be completed by the end of the year.
After the end of the review period, Mr. Ernesto Levy was appointed Senior Vice President, Convenience business area and a member of the Suominen Corporate Executive Team. Levy has an impressive track record in leading consumer brand companies, such as Novartis and Procter & Gamble. His capabilities will bring complementary competencies to our leadership team, which will be especially valuable as we execute our growth strategy.”