Suominen enters a new strategic period - target level for return on investment increased, dividend policy disclosed
Helsinki, Finland, 2014-10-24 07:15 CEST (GLOBE NEWSWIRE) --
Suominen Corporation Stock exchange release 24 October 2014 at 8.15am (EEST)
SUOMINEN ENTERS A NEW STRATEGIC PERIOD – TARGET LEVEL FOR RETURN ON INVESTMENT INCREASED, DIVIDEND POLICY DISCLOSED
Suominen, a company focusing on developing and manufacturing nonwovens, enters a new strategic period. During its next strategic period, covering the years 2015 – 2017, Suominen will be evolved even more actively than earlier to be the forerunner in its industry.
Suominen’s strategy continues to be based on three cornerstones: Suominen Way, Step Change in Profitability and In the Lead. In the coming strategy period, Suominen will emphasize more strongly than before the In the Lead cornerstone and consequently targets growth, market-driven way of operating and product leadership.
To execute the strategy, it is essential that Suominen
* delivers superior value in thoughtfully selected market applications
* drives proactive key account management for mutual value creation
* executes demand driven supply chain
* evolves culture and capabilities to build strong product company.
The strategic financial targets are as follows:
* Return on investment (ROI) of above 12% (previous target level above 10%).
* Gearing ratio principally between 40% and 80%
* Organic net sales growth at a rate that exceeds the industry average.
If Suominen reaches the targeted net sales growth, the company’s net sales will amount to approximately EUR 500 million by the end of 2017.
The refinancing implemented in September 2014 enables the execution of the strategy that prioritizes growth. Suominen estimates that during the strategic period, it will expend approximately EUR 30 – 50 million in growth investments.
Suominen’s Board of Directors has approved a dividend policy for the company. Suominen’s policy is to distribute approximately 30% of its profit for the period in annual dividends. In assessing its proposal for the payment of dividends, the company’s Board of Directors will also consider Suominen’s future investment needs and the solidity of its financial position.
Capital Markets Day focuses on the new strategic period of Suominen
Suominen holds a Capital Markets Day for analysts and institutional investors on Wednesday, 12 November 2014 from 12.00 (noon) to 17.00 EET in Helsinki. The event will be held in English will focus on Suominen’s strategy for 2015 – 2017. The invitation for the event has been disclosed as a Stock Exchange Release on 2 October 2014. To register, please contact Eeva Oinonen at email@example.com by Monday 3 November 2014.
Nina Kopola, President & CEO
For additional information, please contact Nina Kopola, President & CEO, tel +358 10 214 300
NASDAQ OMX Helsinki Ltd.
Suominen in brief
Suominen manufactures nonwovens as roll goods for wipes as well as for medical and hygiene products. The end products made of Suominen’s nonwovens - wet wipes, feminine care products and swabs, for instance - bring added value to the daily life of consumers worldwide. Suominen is the global market leader in nonwovens for wipes and employs approximately 600 people in Europe and in the Americas. Suominen’s net sales in 2013 amounted to MEUR 373.7 and operating profit excluding non-recurring items to MEUR 19.4 (continuing operations). The Suominen share (SUY1V) is listed in NASDAQ OMX Helsinki Stock Exchange. Read more at www.suominen.fi.