Profit warning: Suominen reduces its outlook for 2021
Suominen Corporation's insider information on August 12, 2021 at 4:40 p.m. EEST
In its Financial Statements release for 2020, published on February 4, 2021, Suominen estimated that its comparable EBITDA in 2021 would be in line with 2020. Suominen now estimates that its comparable EBITDA in 2021 will decrease from 2020.
“The market expectation is that in the long run the end user demand for wipes will remain above pre-COVID levels. However, towards the end of the second quarter, especially our North American customers started to experience a sudden deceleration of demand, which in combination with extraordinary stockpiling throughout the entire supply chain has created an imbalance of inventories. This has impacted also Suominen’s orders. We expect that the demand for our products will recover once this temporary imbalance is cleared. Our current view is that the recovery will start in the fourth quarter”, says Petri Helsky, CEO of Suominen.
New outlook: Suominen expects that its comparable EBITDA (earnings before interest, taxes, depreciation and amortization) in 2021 will decrease from 2020 due to the slowdown in the demand for nonwovens in the second half of 2021 as well as some continuing volatility in the raw material and transportation markets. In 2020, Suominen’s comparable EBITDA was EUR 60.9 million.
Previous outlook: 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.
Suominen publishes its half-year report on Friday August 13, 2021 at approx. 9.30 a.m. EEST.
For more information:
Petri Helsky, President and CEO, tel. +358 10 214 3080
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.