Finland's Suominen 's net sales increase to $120.53 mn in Q3 2024

The company’s comparable earnings before interest, taxes, depreciation and amortisation (EBITDA) for Q3 2024 stood at €3.3 million, down from €5.2 million in Q3 2023, yielding a comparable EBITDA margin of 3.0 per cent versus 4.9 per cent year-over-year (YoY) in the prior year. However, operating profit (EBIT) was negative with -€1.5 million for Q3 2024 compared to a profit of €0.7 million in Q3 2023, stated Suominen Corporation in a press release.

Cash flow from operations also reflected challenges, with an outflow of €2.6 million in Q3 2024, compared to an inflow of €8.0 million in Q3 2023. The basic earnings per share (EPS) for Q3 2024 was -€0.06, down from €0.01 in Q3 2023. Suominen reported a loss for Q3 2024, with a net loss of €3.2 million (~$3.4 million), down from a profit of €0.8 million in Q3 2023.

Nine months (9M) financials

Year-to-date (YTD) net sales amounted to €343.8 million (~$370.9 million) in 2024, up from €335.9 million in the same period in 2023 and comparable EBITDA rose to €12.8 million, up by 3.7 per cent YoY.

EBITDA stood at €11.8 million, significantly up from €5.9 million for the same period in 2023, showing progress in earnings. Comparable operating profit was negative at -€1.2 million, an improvement from -€3.4 million in the same period of the prior year.

For the nine-month period, the loss amounted to €6.1 million, an improvement from a loss of €11.4 million in the prior year. YTD cash flow from operations was -€2.6 million versus €17.6 million in the previous year. EPS was -€0.11, a slight improvement from -€0.20 in the previous year.

Suominen expects that its comparable EBITDA in 2024 will increase from 2023 which was €15.8 million, mentioned the press release.

“Our quarterly comparable EBITDA decreased to EUR 3.3 million. In Q3, we had major operational issues, which led to unplanned production downtime and additional expenses. These issues impacted EBITDA negatively by approximately EUR 3.0 million. We took immediate actions to address the issues. Operational excellence continues to be our focus, and we are strengthening our capabilities and resources in continuous improvement,” said Tommi Björnman, president and chief executive officer (CEO) of Suominen Corporation.

“Our ability to innovate and meet market needs is reflected in the share of new products of our net sales, which continued to be a good level and exceeded 30 per cent in the third quarter and 35 per cent in January-September. Sustainability is at the core of both our strategy and all daily operations. In 2024 we took part in the EcoVadis assessment for the third time and improved our score from a Silver Medal level to a Gold Medal level. This result places us in the top 1 per cent of companies in the industry of manufacturing other textiles and in the top 5 per cent of all companies in all industries rated by EcoVadis. Reaching a gold level in this year’s assessment is a result of the continuous improvement of our sustainability work,” added the CEO.

Fibre2Fashion News Desk (SG)