A positive quarter for Suominen: Net sales and operating profit improved

Helsinki, Finland, 2017-04-26 12:00 CEST (GLOBE NEWSWIRE) -- Suominen Corporation   Interim Report   26 April 2017 at 1:00 pm (EEST)

Suominen Corporation’s Interim Report for January 1 - March 31, 2017:
A positive quarter for Suominen: Net sales and operating profit improved
 

  1-3/ 1-3/ 1-12/
KEY FIGURES 2017 2016 2016
Net sales, EUR million 112.9 103.9 416.9
Comparable operating profit, EUR million 6.3 5.5 25.6
Operating profit, EUR million 6.3 5.5 25.6
Profit for the period, EUR million 4.2 3.4 15.2
Earnings per share, basic, EUR 0.08 0.06 0.29
Earnings per share, diluted, EUR 0.07 0.06 0.26
Cash flow from operations per share, EUR 0.12 0.18 0.56
Return on invested capital, rolling 12 months, %  11.7 14.7 11.6
Gearing, % 50.2 28.6 39.6


Highlights in January–March 2017:

- Net sales increased by 9% and amounted to EUR 112.9 million (103.9).
- Operating profit improved by 13% to EUR 6.3 million (5.5).
- Cash flow from operations remained healthy and was EUR 6.1 million (9.1).
- The customer deliveries
from the new manufacturing line at Bethune, SC, USA plant were not started in the targeted schedule. We are now planning to start up the new line during Q2.

- The Annual General Meeting decided to distribute in total EUR 5.6 million (EUR 0.11 per share) as dividends.

Suominen repeats its estimate disclosed on 31 January 2017 and expects that for the full year 2017, its net sales will improve from year 2016. Also the comparable operating profit is estimated to improve from year 2016, provided that the new production line at the Bethune plant will be started up as planned. In 2016, Suominen’s net sales amounted to EUR 416.9 million and comparable operating profit to EUR 25.6 million. The calculation of comparable operating profit is explained in the consolidated financial statements of 2016.

Nina Kopola, President & CEO, comments on Suominen’s first quarter of 2017:


“Consumer confidence remained strong in the beginning of 2017. In the United States, the consumer confidence index rose to its highest level since 2001. In the euro zone, the consumer confidence index also continued to rise. Nonwovens manufactured by Suominen are used mainly in daily consumer goods, which means the development of demand is affected by both the general economic situation and consumer confidence. North America and Europe are Suominen’s main market areas.

We are very pleased to see that Suominen returned to a growth track in the first quarter. The company’s net sales grew to EUR 112.9 million. While demand improved from the comparison period as we expected, the competitive situation remained tight, especially in nonwovens for baby wipes and flushables. Most of the sales growth was generated by increased volumes and we were able to improve our market share.

Moreover, our operating profit increased from the comparison period and amounted to EUR 6.3 million. The profit for the reporting period grew to EUR 4.2 million. Suominen’s cash flow from operations remained at a healthy level.


Three financial targets have been set for Suominen: organic net sales growth, return on invested capital and gearing ratio. The last two are monitored on a quarterly basis, and organic growth is monitored annually. Of the financial targets that are monitored quarterly, return on invested capital nearly reached its target level (over 12%) and was 11.7%. Due to the progress of our investment program, our gearing ratio grew to 50.2%, still well within the target range (40 – 80%).

The Annual General Meeting held on 15 March 2017 decided that a dividend of EUR 0.11 per share was to be paid for the financial year 2016. We were able to increase dividends again, as the dividends paid grew by 10% from the previous financial year.

As technology clearly plays an important role in creating our competitive edge, we established a new corporate function, Technology, to further strengthen Suominen’s competitiveness. The new function consolidates the company’s technological expertise and its development as well as R&D into one entity. In February, Mr. Markku Koivisto was appointed to lead the new function as Chief Technology Officer and as a member of Suominen’s Corporate Executive Team. Mr. Koivisto has long experience in successfully commercializing industrial innovations at UPM Group.

Suominen continued the determined work to execute its strategy during the review period. The largest
project in our growth investment program, the new wetlaid production line focusing on high value-added products at the Bethune plant in SC, USA, is reaching its completion. We were not able to start customer deliveries during Q1 as we had targeted, due to certain problems concerning parts of the machinery. We are now planning to start up the new line during Q2.

To increase the share of high value-added products in our portfolio, we launched several new high value-added products in the market. To give a few examples, I would highlight GENESIS® Pro and AIRLACE® for Workplace for workplace wiping, as well as the Designer Series nonwoven patterns for household and baby wipes. The Designer Series is a totally new concept not only for Suominen, but for the entire industry: the patterns have been designed by professional designers and validated by consumers.

Suominen is heading towards a new strategy period and has today disclosed in a separate release the highlights of the upcoming strategy extending to year 2021.

The new strategy is based on three cornerstones: 1) Best in business; 2) Creating nonwovens that others cannot; and 3) Community of changemakers. In the cornerstones, we crystallize the competitive edges that will enable Suominen to grow: We are the best at turning end-user needs into a commercial success both for our customers and ourselves; we develop and produce unique nonwovens that other companies are not able to create; and we are a global community of highly capable people who are passionate about creating change. 

Along with the strategy, Suominen also revised its vision to reflect the change-making approach. Our new vision is: “We change the way people think about nonwovens.” The vision describes our aspiration not only to delight customers with our innovations, but also to elevate the overall perception of the role of nonwovens in society.

We continue to increase the share of products with high value-add in our portfolio, and thanks to our recent investments in capacity and capabilities, product development and competencies, our opportunities to grow through the transformation of our portfolio are better than ever. If we succeed in the portfolio transformation, our net sales will exceed EUR 600 million by 2021 and our operating profit margin will rise to a new level, above 10%.

In connection with the new strategy, Suominen’s Board of Directors also updated the financial targets for the period 2017
2021. The targets are set to measure profitability, growth and financial position. During the five-year strategic period ending in 2021, Suominen aims to
 

-       reach an average return on investment (ROI) of 15% during the period

-       reach an average annual net sales growth rate of 6% during the period

-       operate with a gearing ratio principally in the range of 40-80%.


Suominen’s progress in the financial targets is reviewed on an annual basis.


The Board of Directors has also decided to update the company’s dividend policy. According to the updated policy, Suominen aims to distribute at least 30% of its profit for the period in annual dividends. Previously, the policy was to distribute approximately 30% of the profit for the period in annual dividends. In assessing its proposal for the payment of dividends, the company’s Board of Directors will also consider Suominen’s future investment needs and the solidity of its financial position.”

NET SALES

In January–March 2017, Suominen’s net sales increased by 9% from the comparison period to EUR 112.9 million (103.9). Net sales improved mainly thanks to increased sales volumes. Competition remained tight, especially in nonwovens for baby wipes and flushables. The strengthening of the USD compared to EUR increased the net sales by EUR 2.7 million. 

Suominen has two business areas, Convenience and Care. Convenience business area supplies nonwovens as roll goods for wiping products. Care business area manufactures nonwovens for hygiene products and medical applications. Net sales of the Convenience business area were EUR 101.9 million (94.4) and net sales of the Care business area EUR 11.1 million (9.5). Due to the reclassification of a customer between applications, the figures for the comparison period have been restated.

The main application areas for nonwoven materials supplied by Suominen in January–March were baby wipes (accounting for 39% of the sales), household wipes (21%), personal care wipes (19%), hygiene and medical products (10%), and wipes for workplace use (9%). All nonwovens for wiping products belong to the Convenience business area and nonwovens for hygiene and medical products to the Care business area.

The proportions of household wipes, baby wipes as well as medical and hygiene products grew from the comparison period while the share of nonwovens for personal care declined. The growth in medical and hygiene products was partially related to the reclassification of a customer.

 

OPERATING PROFIT AND RESULT

Operating profit improved by 13% and amounted to EUR 6.3 million (5.5) due to higher sales volumes and increase in gross margin. The effect of US dollar exchange rate fluctuation improved operating profit by EUR 0.3 million.

Profit before income taxes was EUR 6.1 million (5.3), and profit for the reporting period was EUR 4.2 million (3.4).

FINANCING

The Group’s net interest-bearing liabilities amounted to EUR 70.2 million (34.5) at the end of the review period. The gearing ratio was 50.2% (28.6%) and the equity ratio 44.2% (42.6%).

In January–March, net financial expenses were EUR -0.2 million (-0.2), or 0.1% (0.2%) of net sales. During the first quarter the capitalization of borrowing costs in fixed assets required by IAS 23 standard decreased interest expenses recognized in the statement of profit or loss by EUR 0.8 million (0.2). Fluctuations in exchange rates decreased the financial items by EUR 0.1 million and in the comparison period by EUR 0.5 million.

Cash flow from operations was EUR 6.1 million (9.1), representing a cash flow per share of EUR 0.12 (0.18). The decline in the cash flow from operations was mainly due to negative change in working capital. The financial items in the cash flow from operations, in total EUR -2.1 million (-1.8), were principally impacted by the interests of the debenture bond paid during the reporting period. EUR 2.8 million was tied up in working capital (in Q1 2016: freed 1.4).

During the first quarter Suominen drew down EUR 10 million as a new loan within the EUR 55 million credit facility agreed in autumn 2014.

In accordance with the decision of the Annual General Meeting held on 15 March 2017, a distribution of dividends (EUR 0.11 per share), in total EUR 5.6 million, was paid on 24 March 2017.

In February 2017, in total EUR 0.3 million of accrued interests of the convertible hybrid bond issued by Suominen in February 2014 were capitalized to the bond capital in accordance with the terms of the hybrid bond. If Suominen distributes dividend before 10 February 2018, the bondholders are entitled to a compensation equaling to the dividend. The compensation will be paid the same date as the dividend, and the paid compensation will be deducted from the interests accrued or to be accrued. The compensation deducted from interests accrued or to be accrued will decrease the amount of interests capitalized as principal of the bond and thus the number of shares to be converted with the bond. In total EUR 0.6 million of interests on hybrid bond were paid in March 2017 in connection with the payment of the dividend.

Bondholders of the convertible hybrid bond issued by Suominen are entitled to convert the bond notes and the potential accrued capitalized interest related to the notes into Suominen shares. The conversion rate is EUR 2.50 per share (after the reverse split of the shares), and the conversion period started on 11 February 2014 and will end on 10 February 2018. The number of shares to be converted must be at least 40,000 shares. The number of shares in Suominen may increase in total by maximum of 6,763,360 shares on the basis of the conversion of the remaining bond notes and the potential capitalized interest, if the conversion is carried out by issuing new shares in Suominen.

The hybrid bond capital was EUR 14.6 million on 31 March 2017. Suominen has the right to redeem the bond in whole or in part on 10 February 2018 or thereafter, on each interest payment date, at the nominal value of the bond together with the accrued interest.

CAPITAL EXPENDITURE

The gross capital expenditure totaled EUR 11.2 million (3.5) and was mainly related to the investment in a new production line at the Bethune, SC, USA plant and to the renewal of ICT systems. Other investments were mainly for maintenance. Depreciation and amortization for the review period amounted to EUR 4.7 million (4.6).

CHANGES IN GROUP MANAGEMENT

Markku Koivisto, M.Sc. (Tech) was appointed Senior Vice President, Chief Technology Officer and a member of the Corporate Executive Team at Suominen Corporation effective 27 March 2017. Markku Koivisto has a long working experience combining business development with P&L responsibility in industrial companies.

At the end of the review period, the members of Suominen’s Corporate Executive Team were

Nina Kopola, President & CEO, Chair of the Corporate Executive Team
Tapio Engström, Senior Vice President, CFO
Lynda A. Kelly, Senior Vice President, Care business area
Larry L. Kinn, Senior Vice President, Operational Excellence
Markku Koivisto, Senior Vice President, CTO
Ernesto S. Levy, Senior Vice President, Convenience business area
Mimoun Saïm, Senior Vice President, Global Operations
Hannu Sivula, Senior Vice President, Human Resources


INFORMATION ON SHARES AND SHARE CAPITAL

Share capital

The number of Suominen’s registered shares was 51,665,642 shares on 31 March 2017, 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 1 January to 31 March 2017 was 7,214,841 shares, accounting for 14.2% of the average number of shares (excluding treasury shares). The highest price was EUR 4.65, the lowest EUR 3.86 and the volume-weighted average price EUR 4.21. The closing price at the end of review period was EUR 4.56. The market capitalization (excluding treasury shares) was EUR 231.5 million on 31 March 2017.

Treasury shares

On 31 March 2017, Suominen Corporation held 893,087 treasury shares.

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 15 March 2017 decided that the remuneration payable to the members of the Board remains unchanged, with the exception of the remuneration of the Chair of the Board which will be increased by EUR 10,000. The Chair of the Board of Directors will be paid an annual fee of EUR 60,000, Deputy Chair of the Board an annual fee of EUR 37,500 and other Board members an annual fee of EUR 28,000. 60% of the annual remuneration is paid in cash and 40% in Suominen Corporation’s shares.

The number of shares forming the above remuneration portion which is payable in shares will be 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 2017 of the company is published. The shares will be given out of the own shares held by the company by the decision of the Board of Directors by 2 June 2017 at the latest.


Share-based incentive plans for the management and key employees

The Group management and key employees participate the company’s share-based incentive plan. The share-based incentive plan is divided into Performance Share Plan and Matching Share Plan. The plans are described in detail in the Financial Statements 2016 and in the Remuneration Statement 2016 of Suominen Corporation, available on the company’s website, www.suominen.fi > Investors > Corporate Governance.

ANNUAL GENERAL MEETING

The Annual General Meeting (AGM) of Suominen Corporation was held on 15 March 2017. The AGM decided that a dividend or EUR 0.11 per share will be paid for the financial year 2016.

The AGM adopted the Financial Statements and the Consolidated Financial Statements for the financial year 2016 and decided to discharge the members of the Board of Directors and the President & CEO from liability for the financial year 2016.


The AGM decided that the remuneration payable to the members of the Board remains unchanged, with the exception of the remuneration of the Chair of the Board which will be increased by EUR 10,000. The Chair of the Board of Directors will be paid an annual fee of EUR 60,000, Deputy Chair of the Board an annual fee of EUR 37,500 and other Board members an annual fee of EUR 28,000. Further, the members of the Board will receive a fee of EUR 500 for each meeting held in the home country of respective member and a fee of EUR 1,000 per each meeting held elsewhere than in home country of respective member. 60% of the annual 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. Risto Anttonen, Mr. Hannu Kasurinen, Ms. Laura Raitio and Ms. Jaana Tuominen were re-elected as members of the Board of Directors. Mr. Jan Johansson was elected as a new member and as Chair of the Board of Directors.

The decisions taken on the remuneration of the Board, on the number of the Board members and on the composition of the Board were in accordance with the proposal by the Shareholders’ Nomination Board.


The AGM decided that the auditor's fee would be paid according to the invoice accepted by the company. 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 has announced that it will appoint Ms. Kristina Sandin, Authorised Public Accountant, as the principally responsible auditor of the company. The decisions regarding auditing were in accordance with the proposal of the Board of Directors and the recommendation by the Audit Committee.

The AGM authorized the Board of Directors to decide on the repurchase of the company’s own shares, in accordance with the proposal by the Board. The terms and conditions of the repurchase has been described later in this interim report.

Constitutive meeting and permanent committees of the Board of Directors

In its organizing meeting held after the AGM, the Board of Directors re-elected Risto Anttonen 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. Hannu Kasurinen was re-elected as the Chair of the Audit Committee and Andreas Ahlström and Jaana Tuominen were re-elected as members. Jan Johansson was elected as the Chair of the Personnel and Remuneration Committee and Risto Anttonen and Laura Raitio were re-elected as members.

Authorizations of the Board of Directors

The Annual General Meeting (AGM) held on 15 March 2017 authorized the Board of Directors to repurchase a maximum of 400,000 of the company’s own shares. 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 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 repurchase authorization is valid until 30 June 2018.

The AGM held on 16 March 2016 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 special rights entitling to shares referred to in Chapter 10, Section 1 of the Finnish Limited Liability Companies Act. 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 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 earlier. The authorization is valid until 30 June 2019.

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.

 

 

BUSINESS RISKS AND UNCERTAINTIES

The estimate on the development of Suominen’s net sales is partially based on forecasts and delivery plans received from the company’s customers. Changes in these forecasts and plans, resulting from changes in the market conditions or in customers’ inventory levels, may affect Suominen’s net sales. Due to the continued uncertainty in the general economic situation and the cautious consumer purchasing habits, the forecasts include uncertainty.

Suominen’s customer base is fairly concentrated, which adds to the customer-specific risk. This may affect Suominen’s financial result if customers’ purchasing habits become more cautious as a result of a changes in consumption, or as a result of sales losses. The Group’s ten largest customers accounted for 63% of the Group net sales in 2016. Long-term contracts are preferred with the largest customers. In practice the customer relationships are long-term and last for several years. Customer-related credit risks are managed in accordance with a risk policy approved by the Board of Directors. Credit limits are confirmed for customers on the basis of credit ratings and customer history. Suominen also uses export credit guarantees and insures against customer risks to a limited extent. 


The relevance of the United States in Suominen’s business operations increases the significance of the exchange rate risk related to USD in the Group’s total exchange risk position. Suominen hedges this foreign exchange position in accordance with its hedging policy.

The risks that are characteristic to South American region, including significant changes in business environment or exchange rates, could have an impact on Suominen’s operations in Brazil.

Suominen purchases significant amounts of pulp- and oil-based raw materials annually. Raw materials are the largest cost item for operations. Rapid changes in the global market prices of raw materials have an impact on the company’s profitability. Suominen’s stocks equal to two to four weeks’ consumption and passing on the price changes of these raw materials to the prices Suominen charges its contract customers takes two to five months. 


Extended interruptions in the supply of Suominen’s main raw materials could disrupt production and have a negative impact on the Group’s overall business operations. As Suominen sources its raw materials from a number of major international suppliers, significant interruptions are unlikely.

Suominen has numerous regional, national and international competitors in its different product groups. There is currently oversupply in some product groups in Suominen’s both principal market regions. Products based on new technologies and imports from countries of lower production costs may reduce Suominen’s competitive edge. If Suominen is not able to compete with an attractive product offering, it may lose some of its market share. Competition may lead to increased pricing pressure on the company’s products.


Suominen continuously invests in its manufacturing facilities. The deployment of the investments may delay from what was planned, the costs of the investments may increase from what has been expected or the investments may create less business benefits than anticipated. The deployment phase of investments may cause temporary interruptions in operations.

There could be a risk of Suominen’s business operations being interrupted due to abrupt and unforeseen events, such as power outages or fire and water damage. Suominen may not be able to control these

events through predictive actions, which could lead to interruptions in business. Risks of this type are insured in order to guarantee the continuity of operations. As Suominen has valid damage and business interruption insurance, it is expected that the damage would be compensated and the financial losses caused by the interruption of business would be covered.

Suominen uses certain technologies in its production. In the management’s view, the chosen technologies are competitive and there is no need to make major investments in new technologies. However, it cannot be excluded that the company’s technology choices could prove wrong, and the development of new or substitute technologies would then require investments.

Suominen aims to protect its business against product liability risks through the use of systematic quality assurance processes and products liability insurance. R&D function of the company is responsible for ensuring the underlying safety of the group´s products during their development. Continuous quality control is designed to guarantee product quality during production. Management considers it unlikely that the Group will face significant product liability-related claims, and is unaware of any such claims.


Suominen is subject to corporate income taxes in numerous jurisdictions. Significant judgment is required to determine the total amount of corporate income tax at Group level. There are many transactions and calculations that leave room for uncertainty as to the final amount of the income tax. Tax risks relate also to changes in tax rates or tax legislation or misinterpretations, and materialization of the risks could result in increased payments or sanctions by the tax authorities, which in turn could lead to financial loss. Deferred tax assets included in the statement of financial position require that the deferred tax assets can be recovered against the future taxable income. 


The Group is exposed to several financial risks, such as foreign exchange, interest rate, counterparty, liquidity and credit risks. The Group’s financial risks are managed in line with a policy confirmed by the Board of Directors. The financial risks are described in the consolidated financial statements.

Suominen performs goodwill impairment testing annually. In impairment testing the recoverable amounts are determined as the value in use, which comprises of the discounted projected future cash flows. Actual cash flows can differ from the discounted projected future cash flows. Uncertainties related to the projected future cash flows include, among others, the long economic useful life of the assets and changes in the forecast sales prices of Suominen’s products, production costs as well as discount rates used in testing. Due to the uncertainty inherent in the future, it is possible that Suominen’s recoverable amounts will be insufficient to cover the carrying amounts of assets, particularly goodwill. If this happens, it will be necessary to recognize an impairment loss, which, when implemented, will weaken the result and equity. Goodwill impairment testing has been described in the consolidated financial statements.

General risks related to business operations are described in the Report of the Board of Directors 2016.

BUSINESS ENVIRONMENT

Suominen’s nonwovens are, for the most part, used in daily consumer goods, such as wet wipes as well as 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. At these market areas, the growth in the demand for nonwovens has typically exceeded the growth of gross domestic product by a couple of percentage points. Moreover, Suominen has operated in the growing South American markets since 2014.


The consumer confidence remained strong in the beginning of 2017. In the United States, the consumer confidence index rose to its highest level since 2001. Also in the euro zone, the consumer confidence index continued to increase. North America and Europe are Suominen’s main market areas.

Suominen assesses the trend in the demand for its products on the basis of both the general market situation and, above all, on the basis of the framework agreements drawn up with its customers. In general, the growth in the demand in Suominen’s target markets in 2017 is expected to continue, on average, at the pace of 2016.

OUTLOOK FOR 2017

Suominen expects that for the full year 2017, its net sales will improve from year 2016. Also the comparable operating profit is estimated to improve from year 2016, provided that the new production line at the Bethune plant will be started up as planned.

In 2016, Suominen’s net sales amounted to EUR 416.9 million and comparable operating profit to EUR 25.6 million. The calculation of comparable operating profit is explained in the consolidated financial statements of 2016.

ANALYST AND PRESS CONFERENCE


Nina Kopola, President & CEO, and Tapio Engström, CFO, will present the Q1 financial result in Finnish at an analyst and press conference in Helsinki on Wednesday, 26 April at 2:00 pm (EEST). The conference will take place at Suominen’s Helsinki office, address Itämerentori 2. The presentation material will be available after the analyst and press conference at www.suominen.fi

A teleconference and a webcast on the Q1 financial result will be held on 26 April at 4:00 pm (EEST). The conference can be attended by phone at +44 20 3059 8125 (password "Suominen") or accessed at www.suominen.fi/webcast. The conference call will be held in English.

A replay of the conference can be accessed at
www.suominen.fi/webcast or by phone at 1 844 2308 058 (United States), 0121 260 4861 (United Kingdom) or +44 121 260 4861 (all other locations), using access code 5766262#.

NEXT FINANCIAL REPORT

Suominen Corporation will publish its Half Year Report 2017 on Wednesday, 9 August 2017 approximately at 1:00 pm (EEST).

SUOMINEN GROUP 1 JANUARY–31 MARCH 2017

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 2016. Changes to published accounting standards and interpretations, together with the new accounting standards that came into force on 1 January 2017, are presented in the consolidated financial statements for 2016.  The new standards to be applied on 1 January 2018 and 2019 respectively (IFRS 15 Revenue from Contracts with Customers, IFRS 9 Financial Instruments and IFRS 16 Leases) as well as their effect on the consolidated financial statements of Suominen have been described in the consolidated financial statements of 2016.

The figures in these interim financial statements 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.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

EUR thousands 31.3.2017 31.3.2016 31.12.2016
Assets      
Non-current assets      
Goodwill 15,496 15,496 15,496
Intangible assets 14,542 13,411 14,133
Property, plant and equipment 140,355 94,173 135,510
Loan receivables 6,836 7,793 6,836
Available-for-sale assets 777 777 777
Other non-current receivables 2,514 2,442 2,524
Deferred tax assets 3,570 4,529 3,424
Total non-current assets 184,091 138,621 178,698
       
Current assets      
Inventories 39,452 31,816 42,631
Trade receivables 59,264 52,151 53,946
Loan receivables 1,550 1,000 1,550
Other current receivables 4,770 5,183 7,274
Assets for current tax 1,911 1,892 2,008
Cash and cash equivalents 25,653 53,065 29,522
Total current assets 132,599 145,107 136,929
       
Total assets 316,690 283,728 315,628
       
Equity and liabilities      
Share capital 11,860 11,860 11,860
Share premium account 24,681 24,681 24,681
Reserve for invested unrestricted equity 70,855 69,652 70,855
Treasury shares -44 -44 -44
Fair value and other reserves 41 500 10
Exchange differences 11,473 1,660 12,613
Other equity 4,940 -4,775 6,324
Total equity attributable to owners of the parent 123,806 103,534 126,300
Hybrid bond 16,096 17,272 16,525
Total equity 139,902 120,806 142,824
       
       
Liabilities      
Non-current liabilities      
Deferred tax liabilities 11,171 10,411 11,195
Liabilities from defined benefit plans 998 1,105 1,081
Other non-current liabilities 505 258 364
Debentures 75,000 75,000 75,000
Other non-current interest-bearing liabilities 11,387 18,058 11,574
Total non-current liabilities 99,061 104,831 99,214
       
Current liabilities      
Current interest-bearing liabilities 17,815 3,318 7,923
Liabilities for current tax 1,541 764 280
Trade payables and other current liabilities 58,371 54,010 65,388
Total current liabilities 77,726 58,092 73,590
       
Total liabilities 176,788 162,923 172,804
       
Total equity and liabilities 316,690 283,728 315,628

 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS
 

EUR thousands 1-3/2017 1-3/2016 1-12/2016
Net sales 112,920 103,869 416,862
Cost of goods sold -99,246 -92,077 -364,636
Gross profit 13,674 11,792 52,226
Other operating income 349 629 1,909
Sales and marketing expenses -1,859 -1,758 -7,364
Research and development -1,264 -837 -4,330
Administration expenses -4,694 -4,339 -16,191
Other operating expenses 52 55 -629
Operating profit 6,258 5,543 25,622
Net financial expenses -157 -244 -3,190
Profit before income taxes 6,102 5,299 22,432
Income taxes -1,862 -1,858 -7,199
Profit for the period 4,240 3,441 15,233
       
Earnings per share, EUR      
Basic 0.08 0.06 0.29
Diluted 0.07 0.06 0.26

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
 

EUR thousands 1-3/2017 1-3/2016 1-12/2016
       
Profit for the period 4,240 3,441 15,233
       
Other comprehensive income:      
Other comprehensive income that will be subsequently reclassified to profit or loss      
Exchange differences -1,293 -3,933 7,881
Fair value changes of cash flow hedges and available-for-sale assets 8 618 245
Reclassified to profit or loss 4 -17 116
Reclassified to property, plant and equipment -188
Income taxes related to other comprehensive income 172 514 -410
Total -1,110 -2,819 7,644
Other comprehensive income that will not be subsequently reclassified to profit or loss      
Remeasurements of defined benefit plans 43 -110
Income taxes related to other comprehensive income -12 16
Total 31 -93
       
Total comprehensive income for the period 3,160 622 22,784

 



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

EUR thousands Share capital Share premium account Reserve for invested unrestricted equity Treasury shares Exchange differences
Equity 1 January 2017 11,860 24,681 70,855 -44 12,613
Profit / loss for the period
Other comprehensive income -1,141
Total comprehensive income -1,141
Share-based payments
Dividend distribution
Hybrid bond
Equity 31 March 2017 11,860 24,681 70,855 -44 11,473

 

 

EUR thousands Fair value and other reserves Other equity Total Hybrid bond Total equity
Equity 1 January 2017 10 6,324 126,300 16,525 142,824
Profit / loss for the period 4,240 4,240 4,240
Other comprehensive income 30 31 -1,079 -1,079
Total comprehensive income 30 4,271 3,160 3,160
Share-based payments 102 102 102
Dividend distribution -5,585 -5,585 -5,585
Hybrid bond -171 -171 -428 -600
Equity 31 March 2017 41 4,940 123,806 16,096 139,902

 

 



EUR thousands
Share capital Share
premium account
Reserve for invested unrestricted equity Treasury shares Exchange differences
Equity 1 January 2016 11,860 24,681 69,652 -44 5,097
Profit / loss for the period
Other comprehensive income -3,437
Total comprehensive income -3,437
Share-based payments
Dividend distribution
Hybrid bond
Equity 31 March 2016 11,860 24,681 69,652 -44 1,660

 

EUR thousands Fair value and other reserves Other equity Total Hybrid
bond
Total
equity
Equity 1 January 2016 -118 -3,076 108,052 17,664 125,716
Profit / loss for the period 3,441 3,441 3,441
Other comprehensive income 618 -2,819 -2,819
Total comprehensive income 618 3,441 622 622
Share-based payments 75 75 75
Dividend distribution -5,030 -5,030 -5,030
Hybrid bond -185 -185 -393 -578
Equity 31 March 2016 500 -4,775 103,534 17,272 120,806

 

 

 

EUR thousands Share capital Share premium account Reserve for invested unrestricted equity Treasury shares Exchange differences
Equity 1 January 2016 11,860 24,681 69,652 -44 5,097
Profit / loss for the period
Other comprehensive income 7,516
Total comprehensive income 7,516
Share-based payments
Dividend distribution
Conveyance of treasury shares 80
Conversion of hybrid bond 1,124
Hybrid bond
Equity 31 December 2016 11,860 24,681 70,855 -44 12,613

 

EUR thousands Fair value and other reserves Other equity Total Hybrid bond Total equity
Equity 1 January 2016 -118 -3,076 108,052 17,664 125,716
Profit / loss for the period 15,233 15,233 15,233
Other comprehensive income 128 -93 7,551 7,551
Total comprehensive income 128 15,140 22,784 22,784
Share-based payments 190 190 190
Dividend distribution -5,030 -5,030 -5,030
Conveyance of treasury shares 80 80
Conversion of hybrid bond 1,124 -1,124
Hybrid bond -899 -899 -16 -915
Equity 31 December 2016 10 6,324 126,300 16,525 142,824

 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS
 

EUR thousands 1-3/2017 1-3/2016 1-12/2016
       
Cash flow from operations      
Profit / loss for the period 4,240 3,441 15,233
Total adjustments to profit for the period 7,045 6,852 29,783
Cash flow before changes in net working capital 11,285 10,292 45,016
Change in net working capital -2,763 1,368 -6,277
Financial items -2,067 -1,828 -3,895
Income taxes -337 -714 -6,348
Cash flow from operations 6,118 9,118 28,496
       
Cash flow from investments      
Investments in property, plant and equipment and intangible assets -13,536 -3,849 -49,553
Cash flow from disposed businesses 313
Adjustments of purchase consideration 161
Sales proceeds from property, plant and equipment and intangible assets 8
Cash flow from investments -13,536 -3,849 -49,072
       
Cash flow from financing      
Repayment of other non-current interest-bearing liabilities -27
Changes in current interest-bearing liabilities 10,000 -3,359
Repayment in loan receivables 1,000
Paid interest on hybrid bond -642 -624 -624
Dividend distribution -5,585 -5,030 -5,030
Cash flow from financing 3,745 -5,654 -8,013
       
Change in cash and cash equivalents -3,671 -385 -28,588
       
Cash and cash equivalents at the beginning of the period 29,522 55,570 55,570
Effect of changes in exchange rates -197 -2,120 2,540
Change in cash and cash equivalents -3,671 -385 -28,588
Cash and cash equivalents at the end of the period 25,653 53,065 29,522

 

 

KEY RATIOS

 

  1-3/2017 1-3/2016 1-12/2016
Change in net sales, % * 8.7 -7.2 -6.1
Gross profit, as percentage of net sales, % 12.1 11.4 12.5
Comparable gross profit, as percentage of net sales, % 12.1 11.4 12.5
Operating profit, as percentage of net sales, % 5.5 5.3 6.1
Comparable operating profit, as percentage of net sales, % 5.5 5.3 6.1
Net financial items, as percentage of net sales, % -0.1 -0.2 -0.8
Profit before income taxes, as percentage of net sales, % 5.4 5.1 5.4
Profit for the period, as percentage of net sales, % 3.8 3.3 3.7
Gross capital expenditure, EUR thousands 11,223 3,527 53,320
Depreciation, amortization, impairment losses and reversal of impairment losses, EUR thousands 4,651 4,602 18,520
Return on equity, rolling 12 months, % 12.0 14.1 11.6
Return on invested capital, rolling 12 months, % 11.7 14.7 11.6
Equity ratio, % 44.2 42.6 45.3
Gearing, % 50.2 28.6 39.6
Earnings per share, EUR, basic 0.08 0.06 0.29
Earnings per share, EUR, diluted 0.07 0.06 0.26
Cash flow from operations per share, EUR 0.12 0.18 0.56
Equity per share, EUR 2.76 2.40 2.81
Number of shares, end of period, excluding treasury shares 50,772,555 50,302,346 50,772,555
Share price, end of period, EUR 4.56 4.04 4.14
Share price, period low, EUR 3.86 4.00 3.49
Share price, period high, EUR 4.65 6.20 6.20
Volume weighted average price during the period, EUR 4.21 4.90 4.24
Market capitalization, EUR million 231.5 203.2 210.2
Number of traded shares during the period 7,214,841 3,576,585 13,611,634
Number of traded shares during the period, % of average number of shares 14.2 7.1 27.0
       
*     Compared with the corresponding period in the previous year.      
  31.3.2017 31.3.2016 31.12.2016
Interest-bearing net debt, EUR thousands      
Non-current interest-bearing liabilities 86,387 93,058 86,574
Current interest-bearing liabilities 17,815 3,318 7,923
Interest-bearing receivables and cash and cash equivalents -34,038 -61,858 -37,908
Interest-bearing net debt 70,163 34,517 56,589
         

 

 

CALCULATION OF KEY RATIOS
 

Key ratios per share      
       
Earnings per share      
       
Basic earnings per share are calculated by dividing the net result attributable to owners of the parent (adjusted with interest on hybrid bond, net of tax) by the weighted share-issue adjusted average number of shares outstanding during the reporting period, excluding shares acquired by the Group and held as treasury shares.
When calculating diluted earnings per share, the weighted share-issue adjusted average number of shares outstanding during the year is adjusted by the effect of the hybrid bond on the number of shares.
The dilutive effect of the hybrid bond on the number of shares is calculated by assuming that the remaining amount of the bond is fully converted into shares at the issuance date. In addition, the cumulative accrued interest during the whole loan period on the remaining loan amount is assumed to have been converted into shares at the issuance date. When calculating diluted earnings per share the number of shares is adjusted also with the effects of the share-based incentive plans.
       
EUR thousands 31.3.2017 31.3.2016 31.12.2016
Profit for the period 4,240 3,441 15,233
Interest on hybrid bond net of tax -171 -185 -486
Total 4,069 3,256 14,747
       
Average share-issue adjusted number of shares 50,772,555 50,302,346 50,343,806
Average diluted share-issue adjusted number of shares excluding treasury shares 57,858,575 58,235,782 58,027,756
       
Earnings per share, EUR      
Basic 0.08 0.06 0.29
Diluted 0.07 0.06 0.26
       
       
Cash flow from operations per share = Cash flow from operations  / Share-issue adjusted number of shares excluding treasury shares, end of reporting period
       
  31.3.2017 31.3.2016 31.12.2016
Cash flow from operations, EUR thousand 6,118 9,118 28,496
Share-issue adjusted number of shares excluding treasury shares, end of reporting period 50,772,555 50,302,346 50,775,555
Cash flow from operations per share, EUR 0.12 0.18 0.56
       
Equity per share = Total equity / Share-issue adjusted number of shares excluding treasury shares, end of reporting period
       
  31.3.2017 31.3.2016 31.12.2016
Total equity, EUR thousand 139,902 120,806 142,824
Share-issue adjusted number of shares excluding treasury shares, end of reporting period 50,772,555 50,302,346 50,775,555
Equity per share, EUR 2.76 2.40 2.81
       
Market capitalization = Number of shares at the end of reporting period excluding treasury shares x share price at the end of period
       
  31.3.2017 31.3.2016 31.12.2016
Number of shares at the end of reporting period excluding treasury shares 50,772,555 50,302,346 50,772,555
Share price at end of the period, EUR 4.56 4.04 4.14
Market capitalization, EUR miilion 231.5 203.2 210.2
       
Share turnover = The proportion of number of shares traded during the period to weighted average number of shares excluding treasury shares
       
  31.3.2017 31.3.2016 31.12.2016
Number of shares traded during the period 7,214,841 3,576,585 13,611,634
Average number of shares excluding treasury shares 50,772,555 50,302,346 50,343,806
Share turnover, % 14.2 7.1 27.0
       
Other key ratios      
       
EBITDA = Profit before depreciation, amortization and impairment (operating profit + depreciation, amortization and impairment losses)
       
EUR thousand 31.3.2017 31.3.2016 31.12.2016
Operating profit 6,258 5,543 25,622
+ Depreciation, amortization and impairment losses 4,651 4,602 18,520
EBITDA 10,909 10,145 44,142
       
Interest-bearing net debt = Interest-bearing liabilities - interest-bearing receivables - cash and cash equivalents
       
EUR thousand 31.3.2017 31.3.2016 31.12.2016
Interest-bearing liabilities 104,201 96,375 94,497
Interest bearing receivables -8,386 -8,793 -8,386
Cash and cash equivalents -25,653 -53,065 -29,522
Interest-bearing net debt 70,163 34,517 56,589
       
       
Return on equity (ROE), % = Profit for the reporting period (rolling 12 months) x 100 / Total equity (quarterly average)
       
EUR thousand 31.3.2017 31.3.2016 31.12.2016
Profit for the reporting period (rolling 12 months) 16,032 16,978 15,233
       
Total equity 31 March 2016 / 31 March 2015 / 31 December 2015 120,806 115,051 125,716
Total equity 30 June 2016 / 30 June 2015 / 31 March 2016 130,712 119,328 120,806
Total equity 30 September 2016 / 30 September 2015 / 30 June 2016 135,186 120,360 130,712
Total equity 31 December 2016 / 31 December 2015 / 30 September 2016 142,824 125,716 135,186
Total equity 31 March 2017 / 31 March 2016 / 31 December 2016 139,902 120,806 142,824
Average 133,886 120,252 131,049
       
Return on equity (ROE), % 12.0 14.1 11.6
       
Invested capital = Total equity + interest- bearing liabilities    
       
EUR thousand 31.3.2017 31.3.2016 31.12.2016
Total equity 139,902 120,806 142,824
Interest-bearing liabilities 104,201 96,375 94,497
Invested capital 244,103 217,181 237,321
       
Return on invested capital (ROI), % = Operating profit + financial income (rolling 12 months) x 100 / Invested capital, quarterly average
       
       
EUR thousand 31.3.2017 31.3.2016 31.12.2016
Operating profit (rolling 12 months) 26,338 30,029 25,622
Financial income (rolling 12 months) 750 735 727
Total 27,087 30,764 26,349
       
Invested capital 31 March 2016 / 31 March 2015 / 31 December 2015 217,181 200,051 222,578
Invested capital 30 June 2016 / 30 June 2015 / 31 March 2016 227,594 204,328 217,181
Invested capital 30 September 2016 / 30 September 2015 / 30 June 2016 228,648 202,027 227,594
Invested capital 31 December 2016 / 31 December 2015 / 30 September 2016 237,321 222,578 228,648
Invested capital 31 March 2017 / 31 March 2016 / 31 December 2016 244,103 217,181 237,321
Average 230,969 209,233 226,664
       
Return on invested capital (ROI), % 11.7 14.7 11.6
       
Equity ratio, % = Total equity x 100 / Total assets - advances received  
       
EUR thousand 31.3.2017 31.3.2016 31.12.2016
Total equity 139,902 120,806 142,824
       
Total assets 316,690 283,728 315,628
Advances received -2 -1 -3
  316,688 283,727 315,625
       
Equity ratio, % 44.2 42.6 45.3
       
Gearing, % = Interest-bearing net debt x 100 / Total equity    
       
EUR thousand 31.3.2017 31.3.2016 31.12.2016
Interest-bearing net debt 70,163 34,517 56,589
Total equity 139,902 120,806 142,824
Gearing, % 50.2 28.6 39.6
           

 


NET SALES BY GEOGRAPHICAL MARKET AREA
 

EUR thousands 1-3/2017 1-3/2016 1-12/2016
Finland 707 545 2,386
Rest of Europe 40,319 38,950 158,118
North and South America 68,244 62,174 246,287
Rest of the world 3,650 2,199 10,071
Total 112,920 103,869 416,862

 

 

 

QUARTERLY DEVELOPMENT

 

  2017 2016
EUR thousands 1-3 10-12 7-9 4-6 1-3
Net sales 112,920 100,365 103,796 108,832 103,869
Comparable operating profit 6,258 3,540 7,878 8,661 5,543
as % of net sales 5.5 3.5 7.6 8.0 5.3
Items affecting comparability
Operating profit 6,258 3,540 7,878 8,661 5,543
as % of net sales 5.5 3.5 7.6 8.0 5.3
Net financial items -157 -1,149 -830 -967 -244
Profit before income taxes 6,102 2,391 7,047 7,694 5,299
as % of net sales 5.4 2.4 6.8 7.1 5.1

 


RELATED PARTY INFORMATION

The related parties of Suominen include the members of the Board of Directors, President & CEO and the members of the Corporate 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.

Salaries paid to the related parties during the first quarter of 2017 amounted to EUR 393 thousands, obligatory pension payments EUR 106 thousands, voluntary pension payments EUR 38 thousands, and accruals based on share-based incentive plans EUR 189 thousands.

CHANGES IN PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

 

  31.3.2017 31.3.2016 31.12.2016
EUR thousands 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 135,510 14,133 97,931 13,275 97,931 13,275
Capital expenditure 10,175 1,048 2,741 785 50,020 3,300
Disposals -89
Depreciation, amortization and impairment losses -4,020 -630 -4,026 -572 -16,162 -2,358
Exchange differences and other changes -1,309 -9 -2,474 -77 3,721 4
Carrying amount at the end of the period 140,355 14,542 94,172 13,411 135,510 14,133


Goodwill is not included in intangible assets.


CHANGES IN INTEREST-BEARING LIABILITIES

 

EUR thousands 1-3/2017 1-3/2016 1-12/2016
Total interest-bearing liabilities at the beginning of the period 96,376 96,862 96,862
       
Current liabilities at the beginning of the period 3,318 3,363 3,363
Repayment of current liabilities -3,358
Drawdown of current liabilities 10,000 102 102
Reclassification from non-current liabilities 2 7,899
Exchange rate difference -110 -147 -84
Current liabilities at the end of the period 13,211 3,318 7,923
       
Non-current liabilities at the beginning of the period 18,058 18,498 18,498
Repayment of non-current liabilities -27
Drawdown of non-current liabilities 368 368
Reclassification to current liabilities -2 -7,899
Exchange rate difference -159 -808 607
Non-current liabilities at the end of the period 17,870 18,058 11,574
       
Debentures at the beginning of the period 75,000 75,000 75,000
Changes in debentures
Debentures at the end of the period 75,000 75,000 75,000
       
Total interest-bearing liabilities at the end of the period 106,081 96,376 94,497

 

In accordance with IAS 32, the hybrid bond is included in equity.

 

CONTINGENT LIABILITIES
 

EUR thousands 31.3.2017   31.3.2016 31.12.2016
         
Other commitments        
Operating leases 12,645   16,679 13,088
Contractual commitments to acquire property, plant and equipment 5,517   15,720 5,517
         
Guarantees        
On own behalf 11,133   21,220 16,810
Other own commitments 3,926   4,207 4,036
On behalf of others 979   4,133 963

 Total                                                16,038                  29,560             21,841

 

 

 

NOMINAL AND FAIR VALUES OF DERIVATIVE INSTRUMENTS

 

  31.3.2017 31.3.2016 31.12.2016
EUR thousands Nominal value Fair
value
Nominal
value
Fair
value
Nominal
value
Fair
value
Currency forward contracts            
  Hedge accounting applied 4,684 -32 15,720 390 5,240 -327
  Hedge accounting not applied 1,927 10 2,547 24 2,372 30
Electricity derivatives            
  Hedge accounting applied 448 -50 1,071 -291 594 43
  Hedge accounting not applied 989 -19


FINANCIAL ASSETS BY CATEGORY

a. Financial assets at fair value through profit or loss
b. Loans and receivables
c. Available-for-sale assets
d. Derivatives, hedge accounting applied
e. Carrying amount
f. Fair value

 

  Classification
EUR thousands a. b. c. d. e. f.
Available-for-sale assets 777 777 777
Other non-current receivables 501 501 501
Loan receivables 8,386 8,386 8,386
Trade receivables 59,264 59,264 59,264
Derivatives 10 10 10
Interest and other financial receivables 907 907 907
Cash and cash equivalents 25,653 25,653 25,653
Total 31.3.2017 511 94,210 777 95,497 95,497
             
             
EUR thousands a. b. c. d. e. f.
Available-for-sale assets 777 777 777
Other non-current receivables 501 501 501
Loan receivables 8,386 8,386 8,386
Trade receivables 53,946 53,946 53,946
Derivatives 30 43 73 73
Interest and other financial receivables 869 869 869
Cash and cash equivalents 29,522 29,522 29,522
Total 31.12.2016 530 92,723 777 43 94,072 94,072


Principles in estimating fair value for financial assets for 2017 are the same as those used for preparing the consolidated financial statements for 2016.


FINANCIAL LIABILITIES
 

  31.3.2017 31.12.2016
EUR thousands Carrying amount Fair value Carrying amount Fair value
Non-current financial liabilities        
         
Loans from financial institutions 11,136 11,136 11,294 11,294
Debentures 75,000 78,435 75,000 78,503
Finance lease liabilities 251 251 280 280
Total non-current financial liabilities 86,387 89,822 86,574 90,076
         
Current financial liabilities        
         
Current part of non-current loans from financial institutions 17,702 17,702 7,812 7,812
Finance lease liabilities 113 113 111 111
Derivatives, no hedge accounting applied 19 19
Derivatives, hedge accounting applied 83 83 327 327
Interest accruals 100 100 912 912
Other current liabilities 253 253
Trade payables 47,028 47,028 50,248 50,248
Total current financial liabilities 65,045 65,045 59,662 59,662
         
Total 151,432 154,867 146,236 149,739


Principles in estimating fair value for financial liabilities for 2017 are the same as those used for preparing the consolidated financial statements for 2016.

 

FAIR VALUE MEASUREMENT HIERARCHY
 

EUR thousands Level 1 Level 2 Level 3
Financial assets and liabilities at fair value      
Other non-current receivables 501
Available-for-sale assets 777
Total 1,278
       
Derivatives at fair value      
Currency forward contracts, receivables 10
Currency forward contracts, liabilities -32
Electricity forward contracts, liabilities -69
Total -79

 

 


Principles in estimating fair value for financial assets and their hierarchies for 2017 are the same as those used for preparing the consolidated financial statements for 2016. 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:
Nina Kopola, President & CEO, tel. +358 (0)10 214 300
Tapio Engström, Senior Vice President and CFO, tel. +358 (0)10 214 300


Distribution:
Nasdaq Helsinki
Key media

www.suominen.fi


Suominen in brief

Suominen manufactures nonwovens as roll goods for wipes as well as for medical and hygiene products. The end products made of Suominen’s nonwovens – wet wipes, feminine care products and swabs, for instance – bring added value to the daily life of consumers worldwide. Suominen is the global market leader in nonwovens for wipes and employs nearly 650 people in Europe and in the Americas. Suominen’s net sales in 2016 amounted to EUR 416.9 million and comparable operating profit to EUR 25.6 million. The Suominen share (SUY1V) is listed in Nasdaq Helsinki Stock Exchange (Mid Cap). Read more at www.suominen.fi.



 

Suominen Corporation Interim Report Q1 2017.pdf

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