Suominen’s new strategy and financial targets 2020–2025
Suominen Corporation's stock exchange release, insider information, on January 8, 2020 at 1:00 p.m. EET
Suominen’s Board of Directors has approved the company’s new strategy for the years 2020-2025. 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. Suominen’s main focus is on wipes. Suominen’s vision is to be the frontrunner for nonwovens innovation and sustainability.
The demand for nonwovens is growing globally. The market for spunlace, the nonwovens technology where Suominen is the leader with the largest global asset base, will grow in all regions. Legislation and consumer behavior drive for more sustainable products, and Suominen has excellent opportunities to serve this changing market. Suominen will further strengthen its capabilities in Europe and Americas and will continue to evaluate opportunities in Asia, which is the largest nonwovens market in the world.
Suominen’s five focus areas to achieve its strategic targets:
Improving our efficiency and cost consciousness across the organization
Leveraging our pioneering fiber-based nonwovens know-how and unique assets to lead the market with sustainability
Differentiate with innovation and commercial excellence
Creating closer customer relationships and offering best in class products and services
Great place to work
Harnessing the positive energy and commitment to deliver results
Dual operating model
Optimizing our operations and improving our results by managing two different types of business, specialties and standard
Suominen's Board of Directors has set the following financial targets for the strategy period 2020-2025:
- Net sales growth during the period: above relevant market growth
- EBITDA margin by 2025: above 12%
- Gearing during the period: 40-80%, including the effect of IFRS 16 Leases
“Our vision is to be the frontrunner for nonwovens innovation and sustainability. We will ensure our leadership with future-oriented R&D and by accelerating the commercialization of our innovations.
There are two targets that we aim to achieve with this strategy: growth and improved profitability. We believe that we can grow together with our customers in the changing market by offering sustainable products which the end users are increasingly demanding. Profitability will be improved also by investing in upgrading our assets, new product development, and our operational excellence initiatives.
Our new organization structure which has been in place since July 2019 supports this new strategy and together with our committed personnel we continue to build the future success of Suominen,” says Petri Helsky, President and CEO of Suominen Corporation.
For more information: Petri Helsky, President and CEO, Suominen Corporation, tel. +358 (0)10 214 3080
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, such as wet wipes, feminine care products and swabs, are present in people’s daily life worldwide. Suominen’s net sales in 2018 were EUR 431.1 million and we have nearly 700 professionals working in Europe and in the Americas. Suominen’s shares are listed on the Nasdaq Helsinki. Read more at www.suominen.fi.