Suominen Corporation, Finland based producer of nonwovens, registered depreciation in net sales by 13.9 per cent to €94.5 million in fourth quarter (Q4) compared to same period last year. The Company's net sales fell by 4.6 per cent to €411.4 million for FY19 that ended on December 31, 2019. Operating profit improved by 77 per cent to €8.1 million for FY19.

 

For the whole year, net sales of US reduced to €261.7 million (FY18: €259.9 million) and Europe's business came down to €149.8 million (FY18: €171.3). In 2019, the share of nonwovens for baby wipes was 40 per cent, personal care wipes 22 per cent. home care wipes 20 per cent, workplace wipes 9 per cent and medical & hygiene applications 8 per cent. 

 

The company's operating profit for FY19 improved due to improvement in gross profit, positive development in raw material prices, sales prices and raw material efficiency.  

 

Suominen's nonwovens are mostly 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. North America and Europe are the largest market areas for Suominen. In addition, the company operates in 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 company reported that the consumer confidence indexes in euro and US fluctuated slightly throughout the year, staying strong in both geographical areas the whole time. Suominen assesses the trend in the demand for its products on the bases of both the general market situation and, above all, on the basis of the framework agreements drawn up with its customers. 

 

According to the company report. Currently there is overcapacity in the market, mainly in nonwovens for baby wipes and flushables. At large, the growth in the demand in Suominen's target markets is expected to continue in 2020 on average, at the pace of 2019.

 

Suominen has given its long-term net sales target for the strategy period 2020-2025 on January 8, 2020, which states that company's net sales growth will be above relevant market growth. According to new strategy Suominen will grow by creating innovative and more sustainable nonwovens for its customers and improve its profitability through more efficient operations, and by building a high-performance culture. 

 

Company's main focus is on wipes. Suominen's vision is to be the frontrunner for nonwovens innovation and sustainability. The five focus areas to achieve their strategic targets are operational excellence, sustainability leadership, differentiate with innovation and commercial excellence, great place to work, dual operating model.