Suominen Corporation’s Interim Report for January 1–September 30, 2021: Q3 volumes low as expected, recovery already ongoing

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Suominen Corporation Interim Report October 28, 2021 at 9:30 a.m. (EET)

Suominen Corporation’s Interim Report for January 1–September 30, 2021:

Q3 volumes low as expected, recovery already ongoing

KEY FIGURES

7-9/

7-9/

1-9/

1-9/

1-12/

2021

2020

2021

2020

2020

Net sales, EUR million

98.7

115.4

327.6

347.8

458.9

Comparable EBITDA

4.2

18.1

38.1

47.4

60.9

Comparable EBITDA, %

4.3

15.7

11.6

13.6

13.3

EBITDA

4.2

18.1

38.1

47.4

60.9

Operating profit, EUR million

-0.8

12.9

23.1

31.0

39.5

Operating profit, %

-0.9

11.2

7.0

8.9

8.6

Profit for the period, EUR million

-1.7

10.9

18.2

22.8

30.1

Cash flow from operations, EUR million

-8.9

20.1

8.2

39.1

57.0

Cash flow from operations per share, EUR

-0.16

0.35

0.14

0.68

0.99

Earnings per share, basic, EUR

-0.03

0.19

0.32

0.40

0.52

Return on invested capital, rolling 12 months, %

11.8

13.8

16.7

Gearing, %

30.2

29.9

25.4



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

July–September 2021 in brief:

- Net sales decreased 14.5% from the corresponding period of 2020 and were EUR 98.7 million (115.4)
- Comparable EBITDA decreased to EUR 4.2 million (18.1)
- Cash flow from operations declined and was EUR -8.9 million (20.1)

January–September 2021 in brief:

- Net sales decreased 5.8% and were EUR 327.6 million (347.8)
- Comparable EBITDA decreased to EUR 38.1 million (47.4)
- Cash flow from operations declined and was EUR 8.2 million (39.1)

Outlook for 2021

Suominen repeats its outlook for 2021 but in light of the volatility of the markets and Suominen’s results, gives further detail on the 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 and will amount to EUR 47–53 million. In 2020, Suominen’s comparable EBITDA was EUR 60.9 million.

Petri Helsky, President & CEO:

“Suominen’s net sales were EUR 98.7 million (115.4) in the third quarter of 2021. As expected, sales volumes decreased clearly from the comparison period due to the sudden deceleration of demand we discussed in Suominen’s previous interim report.

Our comparable EBITDA was EUR 4.2 million (18.1). The result was impacted especially by the lower sales and production volumes but also by higher raw material costs for which higher sales prices could compensate only partially. Cost savings actions supported the result to some extent.

Our earlier expectation was that the drop in demand would be temporary in nature. This indeed seems to be the case and the demand recovery has started already in late Q3, in some cases even quicker than previously assumed. We estimate that Suominen’s Q4 volumes will be slightly short of Q2/2021 but clearly above pre-COVID-19 levels. Also the global market expectation is that in the long run the end user demand for wipes will remain above pre-COVID-19 levels.

The investment project to upgrade and restart one of our existing production lines in Cressa was completed during the quarter slightly ahead of the original plan. This investment strengthens our capabilities in Europe and is made in line with our strategy aiming for growth. The two other ongoing investment projects, one in Italy and the other in the US, are proceeding as planned and will be finalized before the end of the year.

We have made strong progress towards our sustainability targets. As part of our continuous work to reduce our greenhouse gas (GHG) emissions we are shifting entirely to fossil-free electricity in all our European plants. In our product offering we are targeting to launch at least 10 sustainable products per year. In 2021 we are well ahead of the target as we have already launched 13 sustainable products by the end of Q3. Thirdly, we are also actively researching new sustainable fibers to be able to serve the needs of our customers even better. In Q3 we have conducted test runs for example with hemp and have received excellent feedback from our customers on the products.

For the second consecutive year we were recognized by Rockline, one of our major customers. We were granted their RRITE Supplier Award 2021, which is given to the supplier who exemplifies their values of renew, respect, integrity, teamwork and excellence.

Our financial performance was disappointing in the third quarter, but we are pleased that the recovery is already ongoing. We will diligently continue to focus on serving our customers, running our operations safely and efficiently, and improving our result in Q4 and beyond.”

NET SALES

JulySeptember 2021

In July–September 2021, Suominen’s net sales decreased from the comparison period by 14.5% to EUR 98.7 million (115.4). Currencies impacted the net sales by EUR 0.7 million.

Suominen has two business areas, Americas and Europe. Net sales of the Americas business area amounted to EUR 57.0 million (71.9) and net sales of the Europe business area to EUR 41.6 million (43.5).

January–September 2021

In January–September 2021, Suominen’s net sales decreased from the comparison period by 5.8% and amounted to EUR 327.6 million (347.8). Currencies impacted the net sales by EUR -13.9 million.

Net sales of the Americas business area amounted to EUR 196.4 million (222.3) and net sales of the Europe business area to EUR 131.3 million (125.6).

EBITDA, OPERATING PROFIT AND RESULT

JulySeptember 2021

EBITDA (earnings before interest, taxes, depreciation and amortization) was EUR 4.2 million (18.1). Currency impact on EBITDA was EUR -0.2 million.

Operating profit decreased from the comparison period and amounted to EUR -0.8 million (12.9).

Profit before income taxes was EUR -1.8 million (11.1), and profit for the reporting period was EUR -1.7 million (10.9). Income taxes for the period were EUR 0.1 million (-0.3). The income taxes of the comparison period were positively impacted by recognition of additional deferred tax assets from previous years’ losses as the possibility to utilize the losses had increased.

JanuarySeptember 2021

EBITDA (earnings before interest, taxes, depreciation and amortization) was EUR 38.1 million (47.4). Currency impact on EBITDA was EUR -1.9 million.

Operating profit decreased and was EUR 23.1 million (31.0).

Profit before income taxes was EUR 23.8 million (25.4), and profit for the reporting period was EUR 18.2 million (22.8).

Income taxes for the period were EUR -5.6 million (-2.6). The income taxes of the comparison period were positively impacted by the recognition of additional deferred tax assets from previous years’ losses as the possibility to utilize the losses had increased. The corporate income taxes of 2020 were also positively impacted by the US tax reliefs enacted as a result of the COVID-19 pandemic.

FINANCING

The Group’s net interest-bearing liabilities at nominal value amounted to EUR 48.2 million (43.1) at the end of the review period. The gearing ratio was 30.2% (29.9%) and the equity ratio 42.5% (46.0%).

In January–September, net financial expenses were EUR +0.7 million (-5.5), or +0.2% (-1.6%) of net sales. Fluctuations in exchange rates decreased the net financial expenses by EUR 1.2 million (in 2020, increased by EUR 1.6 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 in July–September was EUR -8.9 million (20.1) and in January–September EUR 8.2 million (39.1), representing a cash flow per share of EUR 0.14 (0.68). The decline in the cash flow from operations for January–September was driven by more cash being tied up in net working capital as well as the weaker result.

In the third quarter the change in net working capital was negative by EUR 11.4 million (+6.4). The change in net working capital in January-September was EUR -23.2 million (-2.3).

In May 2021, Suominen announced that it has extended by one year the maturity of the EUR 100 million syndicated revolving credit facility agreement signed in July 2020. The maturity of the facility is now extended to July 2024.

In June 2021, Suominen issued a senior unsecured bond of EUR 50 million. The six-year bond matures on June 11, 2027 and it carries a coupon interest of 1.5%. The offering was allocated to 19 investors. The bond is listed on the official list of Nasdaq Helsinki Ltd. The debenture bond issued in 2017 will fall due in October 2022.


CAPITAL EXPENDITURE

In January–September, the gross capital expenditure totaled EUR 14.0 million (4.9) and the largest items were related to the growth investment initiatives in Italy and at the Bethune plant in the USA. Other investments were mainly for maintenance. Depreciation and amortization for the review period amounted to EUR 15.0 million (16.4).

IMPACTS OF THE COVID-19 PANDEMIC ON SUOMINEN

The pandemic has increased the demand for our products in all our markets. Towards the end of the second quarter of 2021 the demand started to decelerate especially in North America, but the demand has started to recover in late Q3. In the long run the market and Suominen’s expectation is that demand will remain above pre-COVID-19 levels.

Suominen’s financial position has remained strong throughout the pandemic.

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

PROGRESS IN SUSTAINABILITY

We progressed well with the actions defined in our sustainability agenda during the third quarter.

We have strong focus on safety and accident prevention, and our long-term target is to have zero lost-time accidents. In the third quarter of 2021, there was zero lost-time accidents (LTA) at Suominen sites (0 in Q3/2020). In total by end of September the amount of LTA’s is 3 (1 in Q1–Q3/2020).

Our employee engagement survey, Suominen Vibe, is a tool to systematically measure and develop engagement. This year’s survey is now ongoing.

We are committed to continuously improving our production efficiency and the efficient utilization of natural resources. 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. As part of our active work to reduce greenhouse gas (GHG) emissions, we are shifting entirely to fossil-free electricity in all our European plants.

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. During the third quarter of the year, we launched four sustainable products. In 2021 we have launched 13 sustainable products in total.

A mandatory training program regarding our renewed Code of Conduct is ongoing and the target is that all Suominen employees will have completed the training by end of November.

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 by 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 September 30, 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 September 30, 2021 was 15,570,116 shares, accounting for 27.0% of the average number of shares (excluding treasury shares). The highest price was EUR 6.41, the lowest EUR 4.37 and the volume-weighted average price EUR 5.57. The closing price at the end of review period was EUR 4.41. The market capitalization (excluding treasury shares) was EUR 254.1 million on September 30, 2021.

Treasury shares

On September 30, 2021, Suominen Corporation held 634,661 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.

In accordance with the resolution by the Annual General Meeting, in total 16,042 shares were transferred to the members of the Board of Directors as their remuneration payable in shares during the reporting period.

In accordance with the matching share-based payment program, 9,352 shares were transferred to the participants of the program in September 2021.

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 the remuneration payable to the members of the Board remains unchanged. 60% of the annual remuneration is paid in cash and 40% in Suominen Corporation’s shares.

The number of shares forming the remuneration portion payable in shares was determined based on the share value in the stock exchange trading maintained by Nasdaq Helsinki Ltd, calculated as the trade volume-weighted average quotation of the share during the one month period immediately following the date on which the Interim Report of January‒March 2021 of the company was published. The shares were given out of the treasury shares held by the company by the decision of the Board of Directors on May 31, 2021.

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

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

Matching Restricted Share Plan 20192021

Suominen also had a Matching Restricted Share Plan for selected key employees in the Suominen Group. The aim of the MRSP was 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 second vesting period of the Matching Restricted Share Plan ended in September 2021 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

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

NOMINATION BOARD

Suominen’s three largest registered shareholders Ahlstrom Capital B.V., Oy Etra Invest Ab and Nordea Nordic Small Cap Fund have nominated the following members to the Shareholders’ Nomination Board:

  • Lasse Heinonen, President & CEO of Ahlström Capital Oy, as a member appointed by Ahlstrom Capital B.V.;

  • Mikael Etola, CEO, Etola-Yhtiöt, as a member appointed by Oy Etra Invest Ab;

  • Jukka Perttula, Chair of Board of Directors, Nordea Funds, as a member appointed by Nordea Nordic Small Cap Fund.

Jaakko Eskola, Chair of Suominen’s Board of Directors, serves as the fourth member of the Nomination Board. The shareholders entitled to appoint members to the Nomination Board were determined on the basis of the registered holdings in the company’s shareholders' register on September 1, 2021.

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 very recent demand slowdown has naturally affected some of our customers. So far we have not experienced significant issues with customer payments and hence we do not see that our customer credit risks would have materially increased. We continue to monitor the financial positions and payment behavior of our customers. 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 market expectation is that in the long run the end user demand for wipes will remain above pre-COVID-19 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 created an imbalance of inventories. This impacted also Suominen’s orders, although in several cases we were able to benefit from our position as the preferred supplier of our customers. The demand started to recover already in late Q3, in some cases even quicker than previously assumed.

In Europe, another specific factor impacting demand has been the earlier uncertainty regarding the final formulation of the Single-Use Plastic Directive (SUPD) that postponed our customers’ development projects. Now that the formulation became clear, our orders were affected as converters and retailers sought to sell out their existing stocks.


OUTLOOK FOR 2021

Suominen repeats its outlook for 2021 but in light of the volatility of the markets and Suominen’s results, gives further detail on the 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 and will amount to EUR 47–53 million. In 2020, Suominen’s comparable EBITDA was EUR 60.9 million.

CORPORATE GOVERNANCE 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

AUDIOCAST AND CONFERENCE CALL

Petri Helsky, President & CEO, and Toni Tamminen, CFO, will present the result in English in an audiocast for analyst, investors and media on October 28 at 11:00 a.m. (EEST). The audiocast can be followed at https://suominen.videosync.fi/2021-q3-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 25932019#.

NEXT FINANCIAL REPORT

Suominen Corporation will publish its Financial Statements Release 2021 on February 3, 2022 approximately at 9:30 a.m. (EET)

SUOMINEN GROUP JANUARY 1 – SEPTEMBER 30, 2021

The figures in this interim report 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

30.9.2021

30.9.2020

31.12.2020

Assets

Non-current assets

Goodwill

15,496

15,496

15,496

Intangible assets

14,320

17,613

16,748

Property, plant and equipment

113,162

106,082

104,666

Right-of-use assets

16,344

14,309

17,784

Loan receivables

3,650

3,978

Equity instruments

421

777

768

Other non-current receivables

71

69

73

Deferred tax assets

1,299

2,647

4,034

Total non-current assets

161,112

160,642

163,548

Current assets

Inventories

50,714

37,977

35,431

Trade receivables

52,959

53,671

51,128

Loan receivables

3,256

3,476

Other current receivables

5,615

5,693

5,675

Assets for current tax

2,855

3,652

247

Cash and cash equivalents

103,182

48,742

57,877

Total current assets

215,325

152,991

153,833

Total assets

376,437

313,633

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

75,692

81,361

81,361

Treasury shares

-44

-44

Fair value and other reserves

-7

2

-7

Exchange differences

-7,801

-8,131

-13,933

Retained earnings

55,257

34,344

41,962

Total equity attributable to owners of the parent

159,682

144,074

145,882

Liabilities

Non-current liabilities

Deferred tax liabilities

14,006

13,444

13,320

Liabilities from defined benefit plans

662

769

774

Non-current provisions

1,885

1,665

1,797

Non-current lease liabilities

13,706

10,914

14,892

Other non-current liabilities

4

17

17

Debentures

132,857

82,563

82,862

Total non-current liabilities

163,119

109,372

113,662

Current liabilities

Current provisions

250

Current lease liabilities

2,723

2,817

2,539

Liabilities for current tax

1,018

787

415

Trade payables and other current liabilities

49,894

56,584

54,634

Total current liabilities

53,636

60,188

57,838

Total liabilities

216,755

169,559

171,499

Total equity and liabilities

376,437

313,633

317,381

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

EUR thousand

7-9/2021

7-9/2020

1-9/2021

1-9/2020

1-12/2020

Net sales

98,654

115,435

327,634

347,808

458,893

Cost of goods sold

-93,182

-95,751

-285,220

-295,320

-389,123

Gross profit

5,472

19,684

42,414

52,488

69,770

Other operating income

696

694

2,404

2,031

2,584

Sales, marketing and administration expenses

-6,034

-6,450

-19,562

-20,740

-27,946

Research and development expenses

-678

-807

-1,872

-2,131

-2,767

Other operating expenses

-298

-215

-317

-685

-2,150

Operating profit

-842

12,907

23,067

30,962

39,492

Net financial expenses

-969

-1,761

684

-5,518

-5,582

Profit before income taxes

-1,811

11,146

23,751

25,444

33,910

Income taxes

112

-270

-5,554

-2,622

-3,794

Profit for the period

-1,699

10,877

18,197

22,822

30,116

Earnings per share, EUR

Basic

-0.03

0.19

0.32

0.40

0.52

Diluted

-0.03

0.19

0.31

0.40

0.52

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

EUR thousand

7-9/2021

7-9/2020

1-9/2021

1-9/2020

1-12/2020

Profit for the period

-1,699

10,877

18,197

22,822

30,116

Other comprehensive income:

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

Exchange differences

1,968

-5,976

6,691

-9,252

-15,504

Reclassified to profit or loss

-327

-327

Income taxes related to other comprehensive income

-255

447

-559

479

929

Total

1,713

-5,529

6,132

-9,100

-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

1,713

-5,529

6,132

-9,100

-14,917

Total comprehensive income for the period

14

5,347

24,329

13,722

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

90

44

Dividends and return of capital

-5,759

Equity 30.9.2021

11,860

24,681

75,692


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

18,197

18,197

Other comprehensive income

6,132

6,132

Total comprehensive income

6,132

18,197

24,329

Share-based payments

900

900

Conveyance of treasury shares

-44

90

Dividends and return of capital

-5,759

-11,519

Equity 30.9.2021

-7,801

-7

55,257

159,682


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 30.9.2020

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

22,822

22,822

Other comprehensive income

-8,838

-262

-9,100

Total comprehensive income

-8,838

-262

36,537

13,722

Share-based payments

684

684

Conveyance of treasury shares

92

Dividends paid

-2,876

-2,876

Equity 30.9.2020

-8,131

2

34,344

144,074


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

1-9/2021

1-9/2020

1-12/2020

Cash flow from operations

Profit for the period

18,197

22,822

30,116

Total adjustments to profit for the period

20,919

25,672

34,626

Cash flow before changes in net working capital

39,116

48,494

64,742

Change in net working capital

-23,203

-2,251

-1,023

Financial items

-2,272

-3,224

-4,289

Income taxes

-5,449

-3,882

-2,438

Cash flow from operations

8,192

39,137

56,991

Cash flow from investments

Investments in property, plant and equipment and intangible assets

-13,609

-6,474

-10,885

Sales proceeds from property, plant and equipment and intangible assets

4

12

Sales proceeds sale of equity investments

2,123

Cash flow from investments

-11,482

-6,474

-10,873

Cash flow from financing

Drawdown of non-current interest-bearing liabilities

50,000

Issuance costs of the bonds

-939

Drawdown of current interest-bearing liabilities

15,000

15,000

Repayment of current interest-bearing liabilities

-1,998

-31,316

-31,968

Repayment in loan receivables

9,301

Dividends and return of capital paid

-11,520

-2,876

-2,876

Cash flow from financing

44,845

-19,192

-19,845

Change in cash and cash equivalents

41,555

13,471

26,274

Cash and cash equivalents at the beginning of the period

57,877

37,741

37,741

Effect of changes in exchange rates

3,750

-2,470

-6,138

Change in cash and cash equivalents

41,555

13,471

26,274

Cash and cash equivalents at the end of the period

103,182

48,742

57,877

KEY RATIOS

7-9/
2021

7-9/
2020

1-9/
2021

1-9/
2020

1-12/
2020

Change in net sales, % *

-14.5

11.7

-5.8

9.7

11.5

Gross profit, as percentage of net sales, %

5.5

17.1

12.9

15.1

15.2

Comparable EBITDA, as percentage of net sales, %

4.3

15.7

11.6

13.6

13.3

Operating profit, as percentage of net sales, %

-0.9

11.2

7.0

8.9

8.6

Net financial items, as percentage of net sales, %

-1.0

-1.5

0.2

-1.6

-1.2

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

-1.8

9.7

7.2

7.3

7.4

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

-1.7

9.4

5.6

6.6

6.6

Gross capital expenditure, EUR thousand

3,343

2,411

14,016

4,867

10,406

Depreciation and amortization, EUR thousand

5,082

5,200

14,984

16,416

21,432

Return on equity, rolling 12 months, %

16.7

15.7

21.6

Return on invested capital, rolling 12 months, %

11.8

13.8

16.7

Equity ratio, %

42.5

46.0

46.0

Gearing, %

30.2

29.9

25.4

Average number of personnel

709

687

689

Earnings per share, EUR, basic

-0.03

0.19

0.32

0.40

0.52

Earnings per share, EUR, diluted

-0.03

0.19

0.31

0.40

0.52

Cash flow from operations per share, EUR

-0.16

0.35

0.14

0.68

0.99

Equity per share, EUR

2.77

2.50

2.53

Number of shares, end of period, excluding treasury shares

57,624,558

57,568,341

57,568,341

Share price, end of period, EUR

4.41

4.95

5.08

Share price, period low, EUR

4.37

2.00

2.00

Share price, period high, EUR

6.41

5.36

5.36

Volume weighted average price during the period, EUR

5.57

3.66

4.29

Market capitalization, EUR million

254.1

285.0

292.4

Number of traded shares during the period

15,570,116

6,483,441

12,937,753

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

27.0

11.3

22.5

* Compared with the corresponding period in the previous year.

30.9.2021

30.9.2020

31.12.2020

Interest-bearing net debt, EUR thousands

Non-current interest-bearing liabilities, nominal value

148,706

95,914

99,892

Current interest-bearing liabilities, nominal value

2,723

2,817

2,539

Interest-bearing receivables and cash and cash equivalents

-103,182

-55,648

-65,331

Interest-bearing net debt

48,247

43,084

37,101

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 adjusted with interest on hybrid bond, 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

30.9.2021

30.9.2020

31.12.2020

Profit for the period

18,197

22,822

30,116

Average share-issue adjusted number of shares

57,601,008

57,543,631

57,549,842

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

58,019,324

57,727,013

57,796,591

Earnings per share

EUR

Basic

0.32

0.40

0.52

Diluted

0.31

0.40

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


30.9.2021

30.9.2020

31.12.2020

Cash flow from operations, EUR thousand

8,192

39,137

56,991

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

57,624,558

57,568,341

57,568,341

Cash flow from operations per share, EUR

0.14

0.68

0.99


Equity per share

Equity per share



Total equity

=

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


30.9.2021

30.9.2020

31.12.2020

Total equity attributable to owners of the parent, EUR thousand

159,682

144,074

145,882

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

57,624,558

57,568,341

57,568,341

Equity per share, EUR

2.77

2.50

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


30.9.2021

30.9.2020

31.12.2020

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

57,624,558

57,568,341

57,568,341

Share price at end of the period, EUR

4.41

4.95

5.08

Market capitalization, EUR million

254.1

285.0

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


30.9.2021

30.9.2020

31.12.2020

Number of shares traded during the period

15,570,116

6,483,441

12,937,753

Average number of shares excluding treasury shares

57,601,008

57,543,631

57,549,842

Share turnover, %

27.0

11.3

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 and comparable EBITDA

EBITDA

=

EBIT + depreciation, amortization and impairment losses

Comparable EBITDA

=

EBIT + depreciation, amortization and impairment losses, adjusted with items affecting comparability


EUR thousand

30.9.2021

30.9.2020

31.12.2020

Operating profit

23,067

30,962

39,492

+ Depreciation, amortization and impairment losses

14,984

16,416

21,432

EBITDA

38,051

47,378

60,924

Gross capital expenditure

EUR thousand

30.9.2021

30.9.2020

31.12.2020

Increases in intangible assets

122

283

306

Increases in property, plant and equipment

13,894

4,583

10,100

Gross capital expenditure

14,016

4,867

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

30.9.2021

30.9.2020

31.12.2020

Interest-bearing liabilities

149,286

96,295

100,293

Tender and issuance costs of the debentures

2,143

2,437

2,138

Interest bearing receivables

-6,905

-7,454

Cash and cash equivalents

-103,182

-48,742

-57,877

Interest-bearing net debt

48,247

43,084

37,101

Interest-bearing liabilities

149,286

96,295

100,293

Tender and issuance costs of the debentures

2,143

2,437

2,138

Nominal value of interest-bearing liabilities

151,429

98,731

102,431

Return on equity (ROE), %

Return on equity (ROE), %

=

Profit for the reporting period (rolling 12 months) x 100

Total equity (quarterly average)


EUR thousand

30.9.2021

30.9.2020

31.12.2020

Profit for the reporting period (rolling 12 months)

25,491

21,627

30,116

Total equity attributable to owners of the parent 30.9.2020 / 30.9.2019 / 31.12.2019

144,074

136,871

132,452

Total equity attributable to owners of the parent 31.12.2020 / 31.12.2019 / 31.3.2020

145,882

132,452

135,868

Total equity attributable to owners of the parent 31.3.2021 / 31.3.2020 / 30.6.2020

152,227

135,868

138,551

Total equity attributable to owners of the parent 30.6.2021/ 30.6.2020 / 30.9.2020

159,386

138,551

144,074

Total equity attributable to owners of the parent 30.9.2021 / 30.9.2020 / 31.12.2020

159,682

144,074

145,882

Average

152,250

137,563

139,365

Return on equity (ROE), %

16.7

15.7

21.6

Invested capital

Invested capital

=

Total equity + interest-bearing liabilities


EUR thousand

30.9.2021

30.9.2020

31.12.2020

Total equity attributable to owners of the parent

159,682

144,074

145,882

Interest-bearing liabilities

149,286

96,295

100,293

Invested capital

308,968

240,368

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

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

EUR thousand

30.9.2021

30.9.2020

31.12.2020

Operating profit (rolling 12 months)

31,596

32,367

39,492

Financial income (rolling 12 months)

476

942

925

Total

32,073

33,310

40,416

Invested capital 30.9.2020 / 30.9.2019 / 31.12.2019

240,368

246,660

241,615

Invested capital 31.12.2021 / 31.12.2019 / 31.3.2020

246,175

241,615

240,761

Invested capital 31.3.2021 / 31.3.2020 / 30.6.2020

252,608

240,761

238,195

Invested capital 30.6.2021/ 30.6.2020 / 30.9.2020

308,615

238,195

240,368

Invested capital 30.9.2021 / 30.9.2020 / 31.12.2020

308,968

240,368

246,175

Average

271,347

241,520

241,423

Return on invested capital (ROI), %

11.8

13.8

16.7

Equity ratio, %

Equity ratio, %

=

Total equity x 100

Total assets - advances received


EUR thousand

30.9.2021

30.9.2020

31.12.2020

Total equity attributable to owners of the parent

159,682

144,074

145,882

Total assets

376,437

313,633

317,381

Advances received

-430

-248

-23

376,008

313,385

317,358

Equity ratio, %

42.5

46.0

46.0

Gearing, %

Gearing, %

=

Interest-bearing net debt x 100

Total equity


EUR thousand

30.9.2021

30.9.2020

31.12.2020

Interest-bearing net debt

48,247

43,084

37,101

Total equity attributable to owners of the parent

159,682

144,074

145,882

Gearing, %

30.2

29.9

25.4

NET SALES BY GEOGRAPHICAL MARKET AREA

EUR thousand

1-9/2021

1-9/2020

1-12/2020

Finland

2,087

2,473

3,180

Rest of Europe

124,512

115,215

156,060

North and South America

199,523

227,180

295,975

Rest of the world

1,512

2,941

3,678

Total

327,634

347,808

458,893

QUARTERLY SALES DEVELOPMENT BY BUSINESS AREA

2021

2020

EUR thousand

7-9

4-6

1-3

10-12

7-9

4-6

1-3

Americas

57,048

67,402

71,904

66,829

71,947

77,162

73,170

Europe

41,634

46,251

43,432

44,276

43,542

45,047

37,054

Unallocated exchange differences and eliminations

-28

-6

-2

-19

-54

-38

-21

Total

98,654

113,647

115,333

111,086

115,435

122,170

110,203

QUARTERLY DEVELOPMENT

2021

2020

EUR thousand

7-9

4-6

1-3

10-12

7-9

4-6

1-3

Net sales

98,654

113,647

115,333

111,086

115,435

122,170

110,203

Comparable EBITDA

4,240

15,277

18,534

13,546

18,107

17,989

11,282

as % of net sales

4.3

13.4

16.1

12.2

15.7

14.7

10.2

EBITDA

4,240

15,277

18,534

13,546

18,107

17,989

11,282

as % of net sales

4.3

13.4

16.1

12.2

15.7

14.7

10.2

Items affecting comparability

Operating profit

-842

10,317

13,592

8,530

12,907

12,391

5,664

as % of net sales

-0.9

9.1

11.8

7.7

11.2

10.1

5.1

Net financial items

-969

-1,613

3,266

-64

-1,761

-1,813

-1,945

Profit before income taxes

-1,811

8,704

16,858

8,466

11,146

10,579

3,719

as % of net sales

-1.8

7.7

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.

The Annual General Meeting held on March 25, 2021 resolved that 40% of the annual remuneration for the Board of Directors is paid in Suominen Corporation’s shares. The number of shares transferred to the members of the Board of Directors as their remuneration payable in shares for 2021 was 16,042 shares. The shares were transferred on May 31, 2021 and the value of the transferred shares totaled EUR 90,445.

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

In accordance with the terms and conditions of the matching restricted share plan 2019, Suominen Corporation transferred a total of 9,352 shares without consideration to the participants of the plan’s vesting period 2020-2021. Of the total number of transferred shares, 4,676 shares were transferred to President & CEO Petri Helsky and 4,676 shares to another member of the Executive Team.

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

30.9.2021

30.9.2020

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

13,894

122

4,583

283

10,100

306

Disposals and decreases

0

0

Depreciation, amortization and impairment losses

-9,969

-2,615

-11,077

-2,675

-14,354

-3,549

Exchange differences and other changes

4,571

65

-9,008

-15

-12,664

-29

Carrying amount at the end of the period

113,162

14,320

106,082

17,613

104,666

16,748


Goodwill is not included in intangible assets.

30.9.2021

30.9.2020

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

599

2,852

7,410

Disposals and decreases

-59

-9

-80

Depreciation, amortization and impairment losses

-2,399

-2,664

-3,530

Exchange differences and other changes

419

-190

-335

Carrying amount at the end of the period

16,344

14,309

17,784

CHANGES IN INTEREST-BEARING LIABILITIES

EUR thousand

1-9/2021

1-9/2020

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

-1,998

-31,316

-31,968

Drawdown of current liabilities, cash flow items

15,000

15,000

Increases in current liabilities, non-cash flow items

226

201

276

Decreases of current liabilities, non-cash flow items

-41

-291

-625

Reclassification from non-current liabilities

1,936

2,309

3,001

Exchange rate difference, non-cash flow item

61

-72

-130

Current liabilities at the end of the period

2,723

2,817

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

380

2,929

7,744

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

-29

-3

Reclassification to current liabilities

-1,936

-2,309

-3,001

Exchange rate difference, non-cash flow item

399

-169

-312

Non-current liabilities at the end of the period

13,706

10,914

14,892

Non-current debentures at the beginning of the period

82,862

81,714

81,714

Increases in debentures

50,000

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

933

850

1,148

Tender and issuance costs of the debentures, cash flow items

-939

Non-current debentures at the end of the period

132,857

82,564

82,862

Total interest-bearing liabilities at the end of the period

149,286

96,294

100,293

CONTINGENT LIABILITIES

EUR thousands

30.9.2021

30.9.2020

31.12.2020

Other commitments

Leasing commitments

101

135

104

Contractual commitments to acquire property, plant and equipment

1,883

4,872

6,586

Commitments to leases not yet commenced

251

34

Guarantees

On own behalf

3,967

8,083

4,317

Other own commitments

26,911

28,055

33,452

30,878

36,137

37,769

NOMINAL AND FAIR VALUES OF DERIVATIVE INSTRUMENTS

30.9.2021

30.9.2020

31.12.2020

EUR thousand

Nominal value

Fair
value

Nominal
value

Fair
value

Nominal
value

Fair
value

Currency forward contracts

Hedge accounting not applied

1,917

-43

3,965

-12

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

52,959

52,959

52,959

Derivative receivables

5

5

5

Interest and other financial receivables

284

284

284

Cash and cash equivalents

103,182

103,182

103,182

Total 30.9.2021

5

156,426

421

156,851

156,851


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

30.9.2021

31.12.2020

EUR thousand

Carrying amount

Fair value

Nominal value

Carrying amount

Fair value

Nominal value

Non-current financial liabilities

Debentures

132,857

136,738

135,000

82,862

87,661

85,000

Lease liabilities

13,706

13,706

13,706

14,892

14,892

14,892

Total non-current financial liabilities

146,562

150,444

148,706

97,754

102,553

99,892

Current financial liabilities

Lease liabilities

2,723

2,723

2,723

2,539

2,539

2,539

Interest accruals

2,353

2,353

2,353

522

522

522

Derivative liabilities

47

47

47

1

1

1

Other current liabilities

679

679

679

552

552

552

Trade payables

36,158

36,158

36,158

42,024

42,024

42,024

Total current financial liabilities

41,961

41,961

41,961

45,639

45,639

45,639

Total

188,523

192,405

190,667

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

Financial assets and liabilities at fair value

Currency forward contracts, receivables

5

Equity instruments

421

Total

5

421

Derivatives at fair value

Currency forward contracts, liabilities

-47

Total

-47

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 (0)10 214 3080
Toni Tamminen, CFO, tel. +358 (0)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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