Suominen net sales decrease by 6% in April–June 2019

The net sales of the Convenience business area of the company amounted to €96.1 million and net sales of the Care business area to €7.7 million between April–June 2019, said Suominen in a press release.

Since July 1, 2019 Suominen’s business areas are Americas and Europe. The net sales of the Americas business area were €65 million and of the Europe business area were €38.8 million between April–June 2019.

For H1, net sales of the Convenience business area amounted to €197.3 million and net sales of the Care business area were €16.2 million. The net sales of the Americas business area were €133.3 million and of the Europe business area were €80.3 million.

In January–June, the share of nonwovens for baby wipes increased to 41 per cent and household wipes increased to 23 per cent while the share of nonwovens for personal care wipes declined to 18 per cent. Other key applications remained nearly flat compared with the corresponding period last year with the share of workplace wipes at 9 per cent and medical and hygiene applications at 9 per cent.

"Suominen’s net sales were €103.8 million in the second quarter. Sales volumes decreased from the comparison period but sales prices improved as a result of our focus on value generation over volume. The strengthening of the USD compared to EUR increased our net sales by €3.4 million in the second quarter. Our operating profit declined to €2.7 (2.9) million," said Petri Helsky, president & CEO of Suominen."The second quarter continued on the same level as the first quarter of the year. When looking at the first half of the year our net sales decreased slightly but our operating profit increased.

We continued our systematic development work on our new manufacturing line in Bethune, SC, US during the second quarter. We conducted several trials and customer qualification runs, which caused some additional costs. We continue to develop the new line in Bethune as part of our regular business operations. "

"From the beginning of July our new business areas are Europe and Americas. I am sure that this new organisation enables us to be more efficient, focused and agile, which will support our work to improve Suominen's profitability going forward. Due to the reorganising of the business areas the second quarter includes €0.4 million restructuring costs. The group-wide renewal of ICT systems was concluded with successful implementations at the Paulínia, Brazil and Bethune, US, plants during the second quarter. All our eight plants are now operating with the renewed systems, allowing us to further increase our efficiency, productivity and transparency," added Helsky.

Suominen reiterates the outlook presented on January 31, 2019, in which Suominen expects that in 2019, its net sales will be at the level of 2018 (€431.1 million) and comparable operating profit, excluding the positive effect of applying IFRS 16 Leases, will improve from 2018 (€4.6 million). (PC)

Fibre2Fashion News Desk – India