Suominen Corporation’s Interim Report for January 1 – March 31, 2021: Strong start to the year, outlook unchanged
Suominen Corporation’s Interim Report on April 28, 2021 at 9:30 a.m. (EEST)
Suominen Corporation’s Interim Report for January 1 – March 31, 2021:
Strong start to the year, outlook unchanged
KEY FIGURES
| 1-3/ | 1-3/ | 1-12/ | |
| 2021 | 2020 | 2020 | |
| Net sales, EUR million | 115.3 | 110.2 | 458.9 |
| Comparable EBITDA | 18.5 | 11.3 | 60.9 |
| Comparable EBITDA, % | 16.1 | 10.2 | 13.3 |
| EBITDA | 18.5 | 11.3 | 60.9 |
| Operating profit, EUR million | 13.6 | 5.7 | 39.5 |
| Operating profit, % | 11.8 | 5.1 | 8.6 |
| Profit for the period, EUR million | 13.8 | 3.5 | 30.1 |
| Cash flow from operations, EUR million | 16.0 | 9.4 | 57.0 |
| Cash flow from operations per share, EUR | 0.28 | 0.16 | 0.99 |
| Earnings per share, basic, EUR | 0.24 | 0.06 | 0.52 |
| Return on invested capital, rolling 12 months, % | 19.8 | 4.8 | 16.7 |
| Gearing, % | 13.3 | 43.7 | 25.4 |
In this financial report, figures shown in brackets refer to the comparison period last year if not otherwise stated.
January–March 2021 in brief:
- Net sales increased by 5% and amounted to EUR 115.3 million (110.2). The negative impact from currencies on net sales was EUR 8.1 million
- Comparable EBITDA (earnings before interest, taxes, depreciation and amortization) improved significantly to EUR 18.5 million (11.3). The negative impact from currencies on EBITDA was EUR 1.5 million
- Cash flow from operations improved to EUR 16.0 million (9.4)
Outlook for 2021 unchanged
Suominen expects that its comparable EBITDA (earnings before interest, taxes, depreciation and amortization) in 2021 will be in line with 2020. The demand for nonwovens is expected to remain strong, however volatility in the raw material and transportation markets has increased uncertainty and may impact the result negatively. In 2020, Suominen’s comparable EBITDA was EUR 60.9 million.
Petri Helsky, President & CEO:
“Year 2021 has started well for Suominen. Our net sales increased to EUR 115.3 million (110.2) in the first quarter despite unfavorable currency rates thanks to continued strong demand of our products. Our quarterly comparable EBITDA (earnings before interest, taxes, depreciation and amortization) was record high and amounted to EUR 18.5 million (11.3). This was driven by the high sales volumes, supported by improved production and raw material efficiency and sales mix. As expected, raw material price inflation sped up significantly during the quarter, but the result impact will be fully visible in the coming months.
The COVID-19 pandemic has increased consumption of nonwovens in all our markets and the demand is expected to continue on a high level. In the long term, COVID-19 may lead to a sustained increase in the use of nonwovens for cleaning and disinfection products. However, the risks related to the pandemic, such as possible shortages of raw materials, issues linked to logistics as well as potential closures of customers’ or our own plants due to virus infections or authority decisions remain relevant at least until there is broad enough vaccination coverage in the countries relevant to Suominen’s business. We have already been experiencing exceptional volatility in the cost and availability of raw materials and transportation.
The three investment projects supporting our strategy by strengthening our capabilities in sustainable products and increasing our capacity that were announced last year, two in Italy and one in the USA, are proceeding as planned and will be finalized during the second half of 2021.
During the quarter, we sold our minority share of Amerplast to Hanmere Polythene Ltd, a portfolio company of the UK private equity group Chiltern Capital. This impacted our net financial expenses positively by EUR 3.7 million and cash flow by EUR 11.6 million. The transaction will not have a material effect on Suominen’s result going forward.
Looking ahead, we see our sales remaining strong. However, we expect the increasing raw material and transportation costs to have an impact on our result, especially in the second quarter. We are working continuously to mitigate this and to safeguard our profitability. For the full year our outlook is unchanged.
The year has started off strong and we are in a good position to continue executing our strategy.”
NET SALES
In January–March 2021, Suominen’s net sales increased by 5% from the comparison period to EUR 115.3 million (110.2). Sales volumes increased and also sales prices improved slightly, supported by sales mix. The negative impact from currencies on net sales was EUR 8.1 million.
Suominen has two business areas, Americas and Europe. Net sales of the Americas business area were EUR 71.9 million (73.2) and net sales of the Europe business area were EUR 43.4 million (37.1).
EBITDA, OPERATING PROFIT AND RESULT
EBITDA (earnings before interest, taxes, depreciation and amortization) improved to EUR 18.5 million (11.3). This was driven by higher sales volumes, supported by improved production and raw material efficiency and sales mix. As expected, raw material price inflation sped up significantly during the quarter, but the result impact will be fully visible in the coming months. The negative impact from currencies on EBITDA was EUR 1.5 million.
Operating profit improved to EUR 13.6 million (5.7).
Profit before income taxes was EUR 16.9 million (3.7), and profit for the reporting period was EUR 13.8 million (3.5). The sale of Amerplast impacted the result positively by EUR 3.7 million.
Corporate income taxes in the comparison period were positively impacted by the US tax reliefs enacted in the first quarter of 2020 as a result of the COVID-19 pandemic.
FINANCING
The Group’s net interest-bearing liabilities at nominal value amounted to EUR 20.2 million (59.3) at the end of the review period. The gearing ratio was 13.3% (43.7%) and the equity ratio 43.9% (43.1%).
In January–March, net financial expenses were EUR +3.3 million (-1.9), or 2.8% (-1.8%) of net sales. Fluctuations in exchange rates decreased the net financial items by EUR 0.7 million. In the comparison period the fluctuations in exchange rates increased the net financial items by EUR 0.7 million.
Suominen sold its minority share in Amerplast (Bright Maze Oy) in March. The transaction impacted Suominen’s net financial expenses positively by EUR 3.7 million. The amount consists of the gain on the sale of the shares as well as of the reversal of bad debt provisions recognized of the loan receivables. The effect on cash flow was EUR 11.6 million, consisting of the sales price of the shares and payment of the loan receivables and accrued interests.
Cash flow from operations was EUR 16.0 million (9.4), representing a cash flow per share of EUR 0.28 (0.16). The improvement in the cash flow from operations was mainly due to the improved result. An additional EUR 2.2 million was tied up in working capital (in Q1 2020: tied up additional EUR 0.9 million).
CAPITAL EXPENDITURE
The gross capital expenditure totaled EUR 5.2 million (0.8) and was mainly related to the growth investments at the Cressa plant in Italy and Bethune plant in the USA. The other investments were mainly normal maintenance investments.
Depreciation and amortization for the review period amounted to EUR 4.9 million (5.6).
IMPACTS OF THE COVID-19 PANDEMIC ON SUOMINEN
The health and safety of Suominen’s employees is our key priority. Suominen aims to secure the health and safety of its employees through several measures and is closely monitoring the COVID-19 situation. Thanks to our proactive approach, we have been able to serve our customers and run our operations.
As a nonwovens manufacturer Suominen is an integral part of the supply chain making disinfecting and cleaning products for fighting the coronavirus. The authorities have classified our nonwovens production as essential in the jurisdictions where other business activities have been shut down.
The pandemic has increased the demand for our products in all our markets and the demand is expected to continue on a high level. In the long term COVID-19 may lead to a sustained increase in the demand for nonwovens for cleaning and disinfection products.
Both Suominen’s financial position and cash flow have remained strong throughout the pandemic.
Risks related to COVID-19 are described in the short-term risk and uncertainties section.
PROGRESS IN SUSTAINABILITY
During the first quarter of 2021 we made progress in actions defined in our sustainability agenda.
We have strong focus on safety and accident prevention, and our long-term target is to have zero lost time accidents. In the first quarter one LTA occurred at Suominen sites.
The employee-manager performance and development discussions, conducted in February-March, covered 97% of the white-collar employees. Our target is to develop and harmonize the performance and development process for our blue-collar employees globally.
We are committed to continuously improving our production efficiency and the efficient utilization of natural resources. In the first quarter we continued our active measures towards our targets to reduce energy consumption, greenhouse gas emissions, water consumption and waste to landfill by 20% per ton of product by 2025 compared to the base year of 2019.
We offer a comprehensive portfolio of sustainable nonwovens to our customers and we are continuously developing new and innovative solutions with a reduced environmental impact. Our target is a 50% increase in sales of sustainable nonwovens by 2025 compared to 2019, and to have at least 10 sustainable product launches per year.
We launched our new Code of Conduct in the beginning of 2021 and a mandatory training program about the Code will be arranged to all employees later this year.
Suominen reports progress in its key sustainability KPIs annually.
As part of our Annual Report 2020 published on March 3, 2021 we reported on the progress of our sustainability performance. Our sustainability reporting in 2020 is in accordance with the Core option of the GRI Standards from the Global Reporting Initiative.
INFORMATION ON SHARES AND SHARE CAPITAL
Share capital
The number of Suominen’s registered shares was 58,259,219 shares on March 31, 2021, 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 January 1 to March 31, 2021 was 7,004,147 shares, accounting for 12.2% of the average number of shares (excluding treasury shares). The highest price was EUR 6.24, the lowest EUR 5.00 and the volume-weighted average price EUR 5.60. The closing price at the end of review period was EUR 5.74. The market capitalization (excluding treasury shares) was EUR 330.6 million on March 31, 2021.
Treasury shares
On March 31, 2021, Suominen Corporation held 660,055 treasury shares. As a share-based payment plan vested, in total 34,872 shares were transferred to the participants of the plan in February. In accordance with the decision made in the Annual General Meeting on March 25, 2021, 4,049 shares which were still in the joint account were transferred to Suominen Corporation’s 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 March 25, 2021 decided that 60% of the annual remuneration of the members of the Board of Directors is paid in cash and 40% in Suominen Corporation’s shares.
The number of shares forming the 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 2021 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 May 31, 2021 at the latest.
Share-based incentive plans for the management and key employees
The Group management and key employees participate in the company’s share-based long-term incentive plans. The plans are described in more details in the Financial Statements and in the Remuneration Report, available on the company’s website www.suominen.fi.
Company's Performance Share Plan currently includes three 3-year performance periods, calendar years 2019-2021, 2020-2022 and 2021-2023. The aim of the Performance Share Plan is to combine the objectives of the shareholders and the persons participating in the plan in order to increase the value of the company in long-term, to build loyalty to the company and to offer them competitive reward plans based on earning and accumulating the company’s shares.
Performance Share Plan: Ongoing performance periods
| Performance Period | 2019–2021 | 2020–2022 | 2021-2023 |
| Incentive based on | Total Shareholder Return (TSR) | Total Shareholder Return (TSR) | Total Shareholder Return (TSR) |
| Potential reward payment | Will be paid partly in Suominen shares and partly in cash in spring 2022 | Will be paid partly in Suominen shares and partly in cash in spring 2023 | Will be paid partly in Suominen shares and partly in cash in spring 2024 |
| Participants | 16 people | 18 people | 19 people |
| Maximum number of shares | 546,000 | 756,500 | 470,000 |
The President & CEO of the company must hold 50% of the net number of shares given on the basis of the plan, as long as his or her shareholding in total corresponds to the value of his or her annual gross salary. A member of the Executive Team must hold 50% of the net number of shares given on the basis of the plan, as long as his or her shareholding in total corresponds to the value of half of his or her annual gross salary. Such number of shares must be held as long as the participant’s employment or service in a group company continues.
Matching Restricted Share Plan 2019–2021
Suominen also has a Matching Restricted Share Plan for selected key employees in the Suominen Group. The aim of the MRSP is to align the objectives of the shareholders and key employees in order to increase the value of the company in the long-term, to retain key employees at the company, and to offer them a competitive reward plan that is based on acquiring, receiving and accumulating the company’s shares. The prerequisite for receiving a reward from the plan is that a participant acquires the company’s shares, amounting to the number resolved by the Board.
If the prerequisites set for a participant have been fulfilled and his or her employment or service in a company belonging to the Suominen Group is in force at the time of the reward payment, he or she will receive matching shares as a reward.
The plan includes vesting periods, the duration of which is resolved by the Board. The potential reward will be paid partly in shares and partly in cash after a vesting period. The cash proportion is intended to cover taxes and tax-related costs arising from the rewards to the plan participants.
The prerequisite for reward payment is that a participant’s employment or service is in force upon reward payment. The plan rewards to be allocated in 2019–2021 can amount to a maximum total of 200,000 Suominen Corporation shares also including the proportion to be paid in cash.
The first vesting period of the Matching Restricted Share Plan ended in September 2020 and in total 9,352 shares were transferred to the participants.
ANNUAL GENERAL MEETING
The Annual General Meeting (AGM) of Suominen Corporation was held on March 25, 2021.
The AGM adopted the Financial Statements and the Consolidated Financial Statements for the financial year 2020 and discharged the members of the Board of Directors and the President & CEO from liability for the financial year 2020. The AGM approved the Remuneration Report for the governing bodies and the Board of Directors' proposals concerning forfeiture of the shares entered in a joint book-entry account and of the rights attached to such shares.
The AGM decided, in accordance with the proposal by the Board of Directors, that a dividend of EUR 0.10 and in addition, a return of capital of EUR 0.10 per share will be paid.
The AGM confirmed the remuneration of the Board of Directors remains unchanged. The Chair will be paid an annual fee of EUR 66,000 and the Deputy Chair and other Board members an annual fee of EUR 31,000. Chair of the Audit Committee will be paid an additional fee of EUR 10,000. Further, the members of the Board will receive a fee for each Board and Committee meeting as follows: EUR 500 for each meeting held in the home country of the respective member, EUR 1,000 for each meeting held elsewhere than in the home country of the respective member and EUR 500 for each meeting held as a telephone conference.
60% of the 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. Björn Borgman, Ms. Nina Linander, Ms. Sari Pajari-Sederholm and Ms. Laura Raitio were re-elected as members of the Board. Mr. Jaakko Eskola was elected as a new member of the Board.
Mr. Jaakko Eskola was elected as the new Chair of the Board of Directors.
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 appointed Mr. Toni Halonen, Authorised Public Accountant, as the principally responsible auditor of the company.
The AGM authorized the Board of Directors to decide on the repurchase of the company’s own shares and to resolve on the issuance of shares and granting of options and the issuance of special rights entitling to shares. The terms and conditions of the authorization are explained later in this interim report.
Suominen published a stock exchange release on March 25, 2021 concerning the resolutions of the Annual General Meeting and the organizing meeting of the Board of Directors. The stock exchange release and an introduction of the new Board members can be viewed on Suominen’s website at www.suominen.fi.
In compliance with the resolution of the Annual General Meeting, on April 8, 2021 Suominen paid out dividends and return of capital in total of EUR 11.5 million for 2020, corresponding to EUR 0.20 per share.
Organizing meeting and permanent committees of the Board of Directors
In its organizing meeting held after the AGM, the Board of Directors elected Andreas Ahlström 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. Nina Linander was re-elected as the Chair of the Audit Committee and Andreas Ahlström and Laura Raitio were re-elected as members. Jaakko Eskola was elected as the Chair of the Personnel and Remuneration Committee and Björn Borgman and Sari Pajari-Sederholm were re-elected as members.
Authorizations of the Board of Directors
The Annual General Meeting (AGM) held on March 25, 2021 authorized the Board of Directors to decide on the repurchase a maximum of 400,000 of the company’s own shares. 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 shares shall be repurchased and paid in accordance with the rules of Nasdaq Helsinki Ltd and Euroclear Finland Ltd. 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 Board of Directors shall decide on other terms and conditions related to the repurchase of the company’s own shares. The repurchase authorization shall be valid until June 30, 2022 and it revokes all earlier authorizations to repurchase company’s own shares.
The Annual General Meeting (AGM) held on March 25, 2021 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 options and other special rights referred to in Chapter 10, Section 1 of the Finnish Companies Act. New shares may be issued, and the company’s own shares may be conveyed to the company’s shareholders in proportion to their current shareholdings in the company; or by waiving the shareholder’s pre-emption right, through a directed share issue if the company has a weighty financial reason to do so, such as, for example, using the shares as consideration in possible acquisitions or other arrangements related to the company’s business, as financing for investments, using shares as part of the company’s incentive program or using the shares for disbursing the portion of the Board members’ remuneration that is to be paid in shares. The new shares may also be issued without payment to the company itself. 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 Board of Directors may grant options and other special rights referred to in Chapter 10, Section 1 of the Finnish Companies Act, which carry the right to receive against payment new shares or own shares held by the company. The right may also be granted to the company’s creditor in such a manner that the right is granted on condition that the creditor’s receivable is used to set off the subscription price (“Convertible Bond”). However, options and other special rights referred to in Chapter 10, Section 1 of the Companies Act cannot be granted as part of the company’s remuneration plan.
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 above.
The authorizations shall revoke all earlier authorizations regarding share issue and issuance of special rights entitling to shares. The Board of Directors shall decide on all other terms and conditions related to the authorizations. The authorizations shall be valid until June 30, 2022.
NOTIFICATIONS UNDER CHAPTER 9, SECTION 5 OF THE SECURITIES MARKET ACT
Suominen Corporation received a notification on January 15, 2021 referred to Chapter 9, Section 5 and 6 of the Securities Market Act. According to the notification, the shareholding of companies controlled by Mr. Erkki Etola in Suominen Corporation has crossed the 15% flagging threshold.
Suominen Corporation received a notification on January 18, 2021 referred to Chapter 9, Section 5 and 6 of the Securities Market Act. According to the notification, the shareholding of Elo Mutual Pension Insurance Company in Suominen Corporation has fallen under the 5% flagging threshold.
SHORT TERM RISKS AND UNCERTAINTIES
The COVID-19 pandemic continues to cause uncertainty in Suominen’s business environment. The key risks related to the virus concern the health and safety of Suominen personnel and customers, possible shortages of raw materials and issues linked to logistics, as well as potential closures of customers’ or our own plants due to virus infections or authority decisions remain valid at least until there is broad enough vaccination coverage in the countries relevant to Suominen’s business.
We have implemented extensive precautions to protect the health and safety of our employees and to ensure business continuity and progress of our strategic projects during the pandemic. We continuously monitor the raw material situation closely and we have identified risk mitigation measures such as utilization of supplementary raw material sources.
The vast majority of our customers have also experienced increased demand for their products and thus our customer credit risks have not materially increased. The COVID-19 pandemic has not increased Suominen’s risk of impairment losses on non-current assets.
Suominen’s other risks and uncertainties include, but are not limited to: risks related to manufacturing, competition, raw material prices and availability and customer specific volumes and credits, changes in legislation, political environment or economic conditions and investments, and financial risks.
A more detailed description of risks is available in Suominen’s Annual Report 2020 at suominen.fi/investors.
BUSINESS ENVIRONMENT
Suominen’s nonwovens are, for the most part, 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, even though the demand for consumer goods is not very cyclical in nature. North America and Europe are the largest market areas for Suominen. In addition, the company operates in the 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 pandemic has increased consumption of nonwovens in all our markets and the demand is expected to continue on a high level. In the long term, COVID-19 may lead to a sustained increase in the use of nonwovens for cleaning and disinfection products. the risks related to the pandemic, such as possible shortages of raw materials, issues linked to logistics as well as potential closures of customers’ or our own plants due to virus infections or authority decisions remain relevant at least until there is broad enough vaccination coverage in the countries relevant to Suominen’s business. We have already been experiencing exceptional volatility in the cost and availability of raw materials and transportation.
OUTLOOK FOR 2021
Suominen expects that its comparable EBITDA (earnings before interest, taxes, depreciation and amortization) in 2021 will be in line with 2020. The demand for nonwovens is expected to remain strong, however volatility in the raw material and transportation markets has increased uncertainty and may impact the result negatively. In 2020, Suominen’s comparable EBITDA was EUR 60.9 million.
CORPORATE GOVERNANCE STATEMENT AND REMUNERATION REPORT
Suominen has prepared a separate Corporate Governance Statement and a Remuneration Report for
2020, which comply with the recommendations of the Finnish Corporate Governance Code for listed
companies. The statements also cover other central areas of corporate governance. The statements have been published on Suominen's website, separately from the Report of the Board of Directors, at www.suominen.fi
EVENTS AFTER THE REPORTING PERIOD
Suominen Corporation received on April 16, 2021 a notification referred to in Chapter 9, Section 5 and 6 of the Securities Market Act. According to the notification, the shareholding of Bolero Holdings SARL in Suominen Corporation has fallen below the 5% flagging threshold.
AUDIOCAST AND CONFERENCE CALL
Petri Helsky, President & CEO, and Toni Tamminen, CFO, will present the result in English in an audiocast and a conference call for analyst, investors and media on April 28, 2021 at 11:00 a.m. (EEST). The audiocast can be followed at at https://suominen.videosync.fi/2021-q1-results. The recording of the audiocast and the presentation material will be available after the event at www.suominen.fi.
Conference call participants are requested to dial on:
Sweden: +46 856642651
United Kingdom: +44 3333000804
United States: +1 6319131422
The confirmation code for joining the conference call is 18841110#
NEXT FINANCIAL REPORT
Suominen Corporation will publish its Half Year Report 2021 on August 13, 2021 approximately at 9:30 a.m. (EEST).
SUOMINEN GROUP 1.1–31.3.2021
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.
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 2020, with the exception of the effect of the new accounting standards and interpretations which have been applied from 1.1.2021.
The new or amended standards or interpretations applicable from 1.1.2021 are not material for Suominen Group.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| EUR thousand | 31.3.2021 | 31.3.2020 | 31.12.2020 |
| Assets | |||
| Non-current assets | |||
| Goodwill | 15,496 | 15,496 | 15,496 |
| Intangible assets | 15,925 | 19,151 | 16,748 |
| Property, plant and equipment | 110,050 | 116,181 | 104,666 |
| Right-of-use assets | 17,405 | 13,654 | 17,784 |
| Loan receivables | − | 3,650 | 3,978 |
| Equity instruments | 421 | 777 | 768 |
| Other non-current receivables | 69 | 65 | 73 |
| Deferred tax assets | 2,044 | 1,894 | 4,034 |
| Total non-current assets | 161,410 | 170,867 | 163,548 |
| Current assets | |||
| Inventories | 39,732 | 38,609 | 35,431 |
| Trade receivables | 55,432 | 54,661 | 51,128 |
| Loan receivables | − | 3,753 | 3,476 |
| Other current receivables | 6,256 | 4,954 | 5,675 |
| Assets for current tax | 2,168 | 1,739 | 247 |
| Cash and cash equivalents | 81,999 | 41,190 | 57,877 |
| Total current assets | 185,587 | 144,905 | 153,833 |
| Total assets | 346,997 | 315,772 | 317,381 |
| Equity and liabilities | |||
| Equity | |||
| Share capital | 11,860 | 11,860 | 11,860 |
| Share premium account | 24,681 | 24,681 | 24,681 |
| Reserve for invested unrestricted equity | 75,602 | 81,269 | 81,361 |
| Treasury shares | − | -44 | -44 |
| Fair value and other reserves | -7 | 264 | -7 |
| Exchange differences | -10,100 | 499 | -13,933 |
| Retained earnings | 50,192 | 17,339 | 41,962 |
| Total equity attributable to owners of the parent | 152,227 | 135,868 | 145,882 |
| Liabilities | |||
| Non-current liabilities | |||
| Deferred tax liabilities | 13,884 | 14,367 | 13,320 |
| Liabilities from defined benefit plans | 752 | 773 | 774 |
| Non-current provisions | 1,833 | 1,640 | 1,797 |
| Non-current lease liabilities | 14,642 | 9,834 | 14,892 |
| Other non-current liabilities | 17 | 17 | 17 |
| Debentures | 83,155 | 81,994 | 82,862 |
| Total non-current liabilities | 114,283 | 108,624 | 113,662 |
| Current liabilities | |||
| Current provisions | 270 | − | 250 |
| Current lease liabilities | 2,584 | 3,066 | 2,539 |
| Other current interest-bearing liabilities | − | 10,000 | − |
| Liabilities for current tax | 3,403 | 69 | 415 |
| Trade payables and other current liabilities | 74,230 | 58,145 | 54,634 |
| Total current liabilities | 80,487 | 71,280 | 57,838 |
| Total liabilities | 194,770 | 179,904 | 171,499 |
| Total equity and liabilities | 346,997 | 315,772 | 317,381 |
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
| EUR thousand | 1-3/2021 | 1-3/2020 | 1-12/2020 |
| Net sales | 115,333 | 110,203 | 458,893 |
| Cost of goods sold | -95,125 | -96,914 | -389,123 |
| Gross profit | 20,208 | 13,289 | 69,770 |
| Other operating income | 845 | 552 | 2,584 |
| Sales, marketing and administration expenses | -6,622 | -7,144 | -27,946 |
| Research and development expenses | -600 | -680 | -2,767 |
| Other operating expenses | -238 | -353 | -2,150 |
| Operating profit | 13,592 | 5,664 | 39,492 |
| Net financial expenses | 3,266 | -1,945 | -5,582 |
| Profit before income taxes | 16,858 | 3,719 | 33,910 |
| Income taxes | -3,085 | -174 | -3,794 |
| Profit for the period | 13,774 | 3,546 | 30,116 |
| Earnings per share, EUR | |||
| Basic | 0.24 | 0.06 | 0.52 |
| Diluted | 0.24 | 0.06 | 0.52 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| EUR thousand | 1-3/2021 | 1-3/2020 | 1-12/2020 |
| Profit for the period | 13,774 | 3,546 | 30,116 |
| Other comprehensive income: | |||
| Other comprehensive income that will be subsequently reclassified to profit or loss | |||
| Exchange differences | 4,268 | -468 | -15,504 |
| Reclassified to profit or loss | − | − | -327 |
| Income taxes related to other comprehensive income | -436 | 259 | 929 |
| Total | 3,832 | -208 | -14,902 |
| Other comprehensive income that will not be subsequently reclassified to profit or loss | |||
| Fair value changes of equity instruments | − | − | -8 |
| Remeasurements of defined benefit plans | − | − | -10 |
| Income taxes related to other comprehensive income | − | − | 3 |
| Total | − | − | -15 |
| Total other comprehensive income | 3,832 | -208 | -14,917 |
| Total comprehensive income for the period | 17,606 | 3,337 | 15,199 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| EUR thousand | Share capital | Share premium account | Reserve for invested unrestricted equity | Treasury shares |
| Equity 1.1.2021 | 11,860 | 24,681 | 81,361 | -44 |
| Profit for the period | − | − | − | − |
| Other comprehensive income | − | − | − | − |
| Total comprehensive income | − | − | − | − |
| Share-based payments | − | − | − | − |
| Conveyance of treasury shares | − | − | − | 44 |
| Dividends and return of capital | − | − | -5,759 | − |
| Equity 31.3.2021 | 11,860 | 24,681 | 75,602 | − |
| EUR thousand | Exchange differences | Fair value and other reserves | Retained earnings | Total equity attributable to owners of the parent |
| Equity 1.1.2021 | -13,933 | -7 | 41,962 | 145,882 |
| Profit for the period | − | − | 13,774 | 13,774 |
| Other comprehensive income | 3,832 | − | − | 3,832 |
| Total comprehensive income | 3,832 | − | 13,774 | 17,606 |
| Share-based payments | − | − | 259 | 259 |
| Conveyance of treasury shares | − | − | -44 | − |
| Dividends and return of capital | − | − | -5,759 | -11,519 |
| Equity 31.3.2021 | -10,100 | -7 | 50,192 | 152,227 |
| EUR thousand | Share capital | Share premium account | Reserve for invested unrestricted equity | Treasury shares |
| Equity 1.1.2020 | 11,860 | 24,681 | 81,269 | -44 |
| Profit / loss for the period | − | − | − | − |
| Other comprehensive income | − | − | − | − |
| Total comprehensive income | − | − | − | − |
| Share-based payments | − | − | − | − |
| Equity 31.3.2020 | 11,860 | 24,681 | 81,269 | -44 |
| EUR thousand | Exchange differences | Fair value and other reserves | Retained earnings | Total equity attributable to owners of the parent |
| Equity 1.1.2020 | 707 | 264 | 13,715 | 132,452 |
| Profit / loss for the period | − | − | 3,546 | 3,546 |
| Other comprehensive income | -208 | − | − | -208 |
| Total comprehensive income | -208 | − | 17,260 | 3,337 |
| Share-based payments | − | − | 79 | 79 |
| Equity 31.3.2020 | 499 | 264 | 17,339 | 135,868 |
| EUR thousand | Share capital | Share premium account | Reserve for invested unrestricted equity | Treasury shares |
| Equity 1.1.2020 | 11,860 | 24,681 | 81,269 | -44 |
| Profit for the period | − | − | − | − |
| Other comprehensive income | − | − | − | − |
| Total comprehensive income | − | − | − | − |
| Share-based payments | − | − | − | − |
| Conveyance of treasury shares | − | − | 92 | − |
| Dividends paid | − | − | − | − |
| Equity 31.12.2020 | 11,860 | 24,681 | 81,361 | -44 |
| EUR thousand | Exchange differences | Fair value and other reserves | Retained earnings | Total equity attributable to owners of the parent |
| Equity 1.1.2020 | 707 | 264 | 13,715 | 132,452 |
| Profit for the period | − | − | 30,116 | 30,116 |
| Other comprehensive income | -14,640 | -270 | -7 | -14,917 |
| Total comprehensive income | -14,640 | -270 | 30,109 | 15,199 |
| Share-based payments | − | − | 1,015 | 1,015 |
| Conveyance of treasury shares | − | − | − | 92 |
| Dividends paid | − | − | -2,876 | -2,876 |
| Equity 31.12.2020 | -13,933 | -7 | 41,962 | 145,882 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| EUR thousand | 1-3/2021 | 1-3/2020 | 1-12/2020 |
| Cash flow from operations | |||
| Profit for the period | 13,774 | 3,546 | 30,116 |
| Total adjustments to profit for the period | 5,121 | 8,224 | 34,626 |
| Cash flow before changes in net working capital | 18,894 | 11,770 | 64,742 |
| Change in net working capital | -2,157 | -879 | -1,023 |
| Financial items | -283 | -1,399 | -4,289 |
| Income taxes | -501 | -82 | -2,438 |
| Cash flow from operations | 15,954 | 9,410 | 56,991 |
| Cash flow from investments | |||
| Investments in property, plant and equipment and intangible assets | -4,255 | -1,666 | -10,885 |
| Sales proceeds from property, plant and equipment and intangible assets | − | − | 12 |
| Sales proceeds sale of equity investments | 2,123 | − | − |
| Cash flow from investments | -2,132 | -1,666 | -10,873 |
| Cash flow from financing | |||
| Drawdown of non-current interest-bearing liabilities | − | − | − |
| Drawdown of current interest-bearing liabilities | − | 10,000 | 15,000 |
| Repayment of current interest-bearing liabilities | -638 | -14,779 | -31,968 |
| Repayment in loan receivables | 9,301 | − | − |
| Dividends paid | − | − | -2,876 |
| Cash flow from financing | 8,663 | -4,779 | -19,845 |
| Change in cash and cash equivalents | 22,485 | 2,965 | 26,274 |
| Cash and cash equivalents at the beginning of the period | 57,877 | 37,741 | 37,741 |
| Effect of changes in exchange rates | 1,637 | 485 | -6,138 |
| Change in cash and cash equivalents | 22,485 | 2,965 | 26,274 |
| Cash and cash equivalents at the end of the period | 81,999 | 41,190 | 57,877 |
KEY RATIOS
| 1-3/2021 | 1-3/2020 | 1-12/2020 | |
| Change in net sales, % * | 4.7 | 0.4 | 11.5 |
| Gross profit, as percentage of net sales, % | 17.5 | 12.1 | 15.2 |
| Comparable EBITDA, as percentage of net sales, % | 16.1 | 10.2 | 13.3 |
| Operating profit, as percentage of net sales, % | 11.8 | 5.1 | 8.6 |
| Net financial items, as percentage of net sales, % | 2.8 | -1.8 | -1.2 |
| Profit before income taxes, as percentage of net sales, % | 14.6 | 3.4 | 7.4 |
| Profit for the period, as percentage of net sales, % | 11.9 | 3.2 | 6.6 |
| Gross capital expenditure, EUR thousand | 5,226 | 849 | 10,406 |
| Depreciation and amortization, EUR thousand | 4,942 | 5,618 | 21,432 |
| Return on equity, rolling 12 months, % | 28.1 | 2.0 | 21.6 |
| Return on invested capital, rolling 12 months, % | 19.8 | 4.8 | 16.7 |
| Equity ratio, % | 43.9 | 43.1 | 46.0 |
| Gearing, % | 13.3 | 43.7 | 25.4 |
| Average number of personnel | 703 | 678 | 689 |
| Earnings per share, EUR, basic | 0.24 | 0.06 | 0.52 |
| Earnings per share, EUR, diluted | 0.24 | 0.06 | 0.52 |
| Cash flow from operations per share, EUR | 0.28 | 0.16 | 0.99 |
| Equity per share, EUR | 2.64 | 2.36 | 2.53 |
| Number of shares, end of period, excluding treasury shares | 57,599,164 | 57,529,868 | 57,568,341 |
| Share price, end of period, EUR | 5.74 | 2.45 | 5.08 |
| Share price, period low, EUR | 5.00 | 2.00 | 2.00 |
| Share price, period high, EUR | 6.24 | 2.65 | 5.36 |
| Volume weighted average price during the period, EUR | 5.60 | 2.27 | 4.29 |
| Market capitalization, EUR million | 330.6 | 140.9 | 292.4 |
| Number of traded shares during the period | 7,004,147 | 1,404,870 | 12,937,753 |
| Number of traded shares during the period, % of average number of shares | 12.2 | 2.4 | 22.5 |
| 31.3.2021 | 31.3.2020 | 31.12.2020 | ||
| Interest-bearing net debt, EUR thousands | ||||
| Non-current interest-bearing liabilities, nominal value | 99,642 | 94,834 | 99,892 | |
| Current interest-bearing liabilities, nominal value | 2,584 | 13,066 | 2,539 | |
| Interest-bearing receivables and cash and cash equivalents | -81,999 | -48,593 | -65,331 | |
| Interest-bearing net debt | 20,227 | 59,307 | 37,101 |
* Compared with the corresponding period in the previous year.
CALCULATION OF KEY RATIOS AND ALTERNATIVE PERFORMANCE MEASURES
Key ratios per share are either IFRS key ratios (earnings per share) or required by Ordinance of the Ministry of Finance in Finland or alternative performance measures (cash flow from operations per share).
Some of the other key ratios Suominen publishes are alternative performance measures. An alternative performance measure is a key ratio which has not been defined in IFRS standards. Suominen believes that the use of alternative performance measures provides useful information for example to investors regarding the Group's financial and operating performance and makes it easier to make comparisons between the reporting periods.
The link between the components of the key ratios per share and the consolidated financial statements is presented in the consolidated financial statements of 2020. The link between the components of the alternative performance measures and the consolidated financial statements is presented in Suominen’s Annual Report for 2020.
Calculation of key ratios per share
Earnings per share
| Basic earnings per share (EPS) | Profit for the period. net of tax | ||
| = | Share-issue adjusted average number of shares excluding treasury shares | ||
| Diluted earnings per share (EPS) | Profit for the period | ||
| = | Average diluted share-issue adjusted number of shares excluding treasury shares | ||
| EUR thousand | 31.3.2021 | 31.3.2020 | 31.12.2020 | |
| Profit for the period | 13,774 | 3,546 | 30,116 | |
| Average share-issue adjusted number of shares | 57,581,245 | 57,529,868 | 57,549,842 | |
| Average diluted share-issue adjusted number of shares excluding treasury shares | 57,912,920 | 57,609,586 | 57,796,591 | |
| Earnings per share | ||||
| EUR | ||||
| Basic | 0.24 | 0.06 | 0.52 | |
| Diluted | 0.24 | 0.06 | 0.52 |
Cash flow from operations per share
| Cash flow from operations per share | Cash flow from operations | |
| = | Share-issue adjusted number of shares excluding treasury shares. end of reporting period | |
| 31.3.2021 | 31.3.2020 | 31.12.2020 | ||
| Cash flow from operations, EUR thousand | 15,954 | 9,410 | 56,991 | |
| Share-issue adjusted number of shares excluding treasury shares, end of reporting period | 57,599,164 | 57,529,868 | 57,568,341 | |
| Cash flow from operations per share, EUR | 0.28 | 0.16 | 0.99 |
Equity per share
| Equity per share | Total equity attributable to owners of the parent | |
| = | Share-issue adjusted number of shares excluding treasury shares. end of reporting period | |
| 31.3.2021 | 31.3.2020 | 31.12.2020 | ||
| Total equity attributable to owners of the parent, EUR thousand | 152,227 | 135,868 | 145,882 | |
| Share-issue adjusted number of shares excluding treasury shares, end of reporting period | 57,599,164 | 57,529,868 | 57,568,341 | |
| Equity per share, EUR | 2.64 | 2.36 | 2.53 |
Market capitalization
| Market capitalization | = | Number of shares at the end of reporting period excluding treasury shares x share price at the end of period |
| 31.3.2021 | 31.3.2020 | 31.12.2020 | ||
| Number of shares at the end of reporting period excluding treasury shares | 57,599,164 | 57,529,868 | 57,568,341 | |
| Share price at end of the period, EUR | 5.74 | 2.45 | 5.08 | |
| Market capitalization, EUR million | 330.6 | 140.9 | 292.4 | |
Share turnover
| Share turnover | = | The proportion of number of shares traded during the period to weighted average number of shares excluding treasury shares |
| 31.3.2021 | 31.3.2020 | 31.12.2020 | ||
| Number of shares traded during the period | 7,004,147 | 1,404,870 | 12,937,753 | |
| Average number of shares excluding treasury shares | 57,581,245 | 57,529,868 | 57,549,842 | |
| Share turnover, % | 12.2 | 2.4 | 22.5 | |
Calculation of key ratios and alternative performance measures
Operating profit and comparable operating profit
| Operating profit (EBIT) | = | Profit before income taxes + net financial expenses | ||
| Comparable operating profit (EBIT) | = | Profit before income taxes + net financial expenses. adjusted with items affecting comparability | ||
In order to improve the comparability of result between reporting periods. Suominen presents comparable operating profit as an alternative performance measure. Operating profit is adjusted with material items that are considered to affect comparability between reporting periods. These items include, among others, impairment losses or reversals of impairment losses, gains or losses from the sales of property, plant and equipment or intangible assets or other assets and restructuring costs. Suominen did not have any items affecting comparability in 2021 or 2020.
EBITDA
| EBITDA | = | EBIT + depreciation. amortization and impairment losses |
| EUR thousand | 31.3.2021 | 31.3.2020 | 31.12.2020 | |
| Operating profit | 13,592 | 5,664 | 39,492 | |
| + Depreciation, amortization and impairment losses | 4 942 | 5,618 | 21,432 | |
| EBITDA | 18,534 | 11,282 | 60,924 | |
Gross capital expenditure
| EUR thousand | 31.3.2021 | 31.3.2020 | 31.12.2020 | |
| Increases in intangible assets | 19 | 21 | 306 | |
| Increases in property, plant and equipment | 5,207 | 828 | 10,100 | |
| Gross capital expenditure | 5,226 | 849 | 10,406 | |
Interest-bearing net debt
It is the opinion of Suominen that presenting interest-bearing liabilities not only at amortized cost but also at nominal value gives relevant additional information to the investors.
| Interest-bearing net debt | = | Interest-bearing liabilities at nominal value - interest-bearing receivables - cash and cash equivalents |
| EUR thousand | 31.3.2021 | 31.3.2020 | 31.12.2020 | |
| Interest-bearing liabilities | 100,381 | 104,893 | 100,293 | |
| Tender and issuance costs of the debentures | 1,845 | 3,006 | 2,138 | |
| Interest bearing receivables | − | -7,403 | -7,454 | |
| Cash and cash equivalents | -81,999 | -41,190 | -57,877 | |
| Interest-bearing net debt | 20,227 | 59,307 | 37,101 | |
| Interest-bearing liabilities | 100,381 | 104,893 | 100,293 | |
| Tender and issuance costs of the debentures | 1,845 | 3,006 | 2,138 | |
| Nominal value of interest-bearing liabilities | 102,226 | 107,900 | 102,431 | |
Return on equity (ROE), %
| Return on equity (ROE), % | = | Profit for the reporting period (rolling 12 months) x 100 |
| Total equity attributable to owners of the parent (quarterly average) |
| EUR thousand | 31.3.2021 | 31.3.2020 | 31.12.2020 | |
| Profit for the reporting period (rolling 12 months) | 40,344 | 2,645 | 30,116 | |
| Total equity attributable to owners of the parent 31.3.2020 / 31.3.2019 / 31.12.2019 | 135,868 | 133,776 | 132,452 | |
| Total equity attributable to owners of the parent 30.6.2020 / 30.6.2019 / 31.3.2020 | 138,551 | 133,178 | 135,868 | |
| Total equity attributable to owners of the parent 30.9.2020 / 30.9.2021 / 30.6.2020 | 144,074 | 136,871 | 138,551 | |
| Total equity attributable to owners of the parent 31.12.2020/ 31.12.2019 / 30.9.2020 | 145,882 | 132,452 | 144,074 | |
| Total equity attributable to owners of the parent 31.3.2021 / 31.3.2020 / 31.12.2020 | 152,227 | 135,868 | 145,882 | |
| Average | 143,320 | 134,429 | 139,365 | |
| Return on equity (ROE), % | 28.1 | 2.0 | 21.6 |
Invested capital
| Invested capital | = | Total equity + interest-bearing liabilities |
| EUR thousand | 31.3.2021 | 31.3.2020 | 31.12.2020 | |
| Total equity attributable to owners of the parent | 152,227 | 135,868 | 145,882 | |
| Interest-bearing liabilities | 100,381 | 104,893 | 100,293 | |
| Invested capital | 252,608 | 240,761 | 246,175 |
Return on invested capital (ROI). %
| Return on invested capital (ROI). % | = | Operating profit + financial income (rolling 12 months) x 100 |
| Invested capital. quarterly average |
| EUR thousand | 31.3.2021 | 31.3.2020 | 31.12.2020 | |
| Operating profit (rolling 12 months) | 47,420 | 10,832 | 39,492 | |
| Financial income (rolling 12 months) | 858 | 1,005 | 925 | |
| Total | 48,278 | 11,837 | 40,416 | |
| Invested capital 31.3.2020 / 31.3.2019 / 31.12.2019 | 240,761 | 250,259 | 241,615 | |
| Invested capital 30.6.2020 / 30.6.2019 / 31.3.2020 | 238,195 | 249,752 | 240,761 | |
| Invested capital 30.9.2020 / 30.9.2021 / 30.6.2020 | 240,368 | 246,660 | 238,195 | |
| Invested capital 31.12.2020/ 31.12.2019 / 30.9.2020 | 246,175 | 241,615 | 240,368 | |
| Invested capital 31.3.2021 / 31.3.2020 / 31.12.2020 | 252,608 | 240,761 | 246,175 | |
| Average | 243,621 | 245,809 | 241,423 | |
| Return on invested capital (ROI), % | 19.8 | 4.8 | 16.7 |
Financial income does not include fair value changes of assets at fair value through profit or loss.
Equity ratio. %
| Equity ratio. % | = | Total equity attributable to owners of the parent x 100 | |
| Total assets - advances received |
| EUR thousand | 31.3.2021 | 31.3.2020 | 31.12.2020 | |
| Total equity attributable to owners of the parent | 152,227 | 135,868 | 145,882 | |
| Total assets | 346,997 | 315,772 | 317,381 | |
| Advances received | -60 | -313 | -23 | |
| 346,937 | 315,459 | 317,358 | ||
| Equity ratio, % | 43.9 | 43.1 | 46.0 |
Gearing. %
| Gearing. % | = | Interest-bearing net debt x 100 | |
| Total equity attributable to owners of the parent | |||
| EUR thousand | 31.3.2021 | 31.3.2020 | 31.12.2020 | |
| Interest-bearing net debt | 20,227 | 59,307 | 37,101 | |
| Total equity attributable to owners of the parent | 152,227 | 135,868 | 145,882 | |
| Gearing, % | 13.3 | 43.7 | 25.4 |
NET SALES BY GEOGRAPHICAL MARKET AREA
| EUR thousand | 1-3/2021 | 1-3/2020 | 1-12/2020 |
| Finland | 780 | 804 | 3,180 |
| Rest of Europe | 41,472 | 34,919 | 156,060 |
| North and South America | 72,370 | 73,677 | 295,975 |
| Rest of the world | 711 | 803 | 3,678 |
| Total | 115,333 | 110,203 | 458,893 |
QUARTERLY SALES BY BUSINESS AREA
| 2021 | 2020 | ||||
| EUR thousand | 1-3 | 10-12 | 7-9 | 4-6 | 1-3 |
| Americas | 71,904 | 66,829 | 71,947 | 77,162 | 73,170 |
| Europe | 43,432 | 44,276 | 43,542 | 45,047 | 37,054 |
| Unallocated exchange differences and eliminations | -2 | -19 | -54 | -38 | -21 |
| Total | 115,333 | 111,086 | 115,435 | 122,170 | 110,203 |
QUARTERLY DEVELOPMENT
| 2021 | 2020 | ||||
| EUR thousand | 1-3 | 10-12 | 7-9 | 4-6 | 1-3 |
| Net sales | 115,333 | 111,086 | 115,435 | 122,170 | 110,203 |
| Comparable EBITDA | 18,534 | 13,546 | 18,107 | 17,989 | 11,282 |
| as % of net sales | 16.1 | 12.2 | 15.7 | 14.7 | 10.2 |
| EBITDA | 18,534 | 13,546 | 18,107 | 17,989 | 11,282 |
| as % of net sales | 16.1 | 12.2 | 15.7 | 14.7 | 10.2 |
| Items affecting comparability | − | − | − | − | − |
| Operating profit | 13,592 | 8,530 | 12,907 | 12,391 | 5,664 |
| as % of net sales | 11.8 | 7.7 | 11.2 | 10.1 | 5.1 |
| Net financial items | 3,266 | -64 | -1,761 | -1,813 | -1,945 |
| Profit before income taxes | 16,858 | 8,466 | 11,146 | 10,579 | 3,719 |
| as % of net sales | 14.6 | 7.6 | 9.7 | 8.7 | 3.4 |
RELATED PARTY INFORMATION
The related parties of Suominen include the members of the Board of Directors, President & CEO and the members of the 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.
One of Suominen’s share-based plans vested and shares were transferred to the participants of the plan in February. The President & CEO received 12,002 shares, and the value of the shares and portion settled in cash totaled EUR 128 thousand. The number of the shares transferred to other members of the Executive Team was 14,742 shares. The value of the shares and the portion settled in cash was EUR 146 thousand.
CHANGES IN PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND RIGHT-OF-USE ASSETS
| 31.3.2021 | 31.3.2020 | 31.12.2020 | ||||
| EUR thousand | 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 | 104,666 | 16,748 | 121,584 | 20,020 | 121,584 | 20,020 |
| Capital expenditure and increases | 5,207 | 19 | 828 | 21 | 10,100 | 306 |
| Depreciation, amortization and impairment losses | -3,284 | -861 | -3,822 | -898 | -14,354 | -3,549 |
| Exchange differences and other changes | 3,461 | 19 | -2,410 | 9 | -12,664 | -29 |
| Carrying amount at the end of the period | 110,050 | 15,925 | 116,181 | 19,151 | 104,666 | 16,748 |
Goodwill is not included in intangible assets.
| 31.3.2021 | 31.3.2020 | 31.12.2020 | |
| EUR thousand | Right-of-use assets | Right-of-use assets | Right-of-use assets |
| Carrying amount at the beginning of the period | 17,784 | 14,319 | 14,319 |
| Increases | 91 | 145 | 7,410 |
| Disposals and decreases | -11 | − | -80 |
| Depreciation, amortization and impairment losses | -797 | -897 | -3,530 |
| Exchange differences and other changes | 338 | 87 | -335 |
| Carrying amount at the end of the period | 17,405 | 13,654 | 17,784 |
CHANGES IN INTEREST-BEARING LIABILITIES
| EUR thousand | 1-3/2021 | 1-3/2020 | 1-12/2020 |
| Total interest-bearing liabilities at the beginning of the period | 100,293 | 109,163 | 109,163 |
| Current liabilities at the beginning of the period | 2,539 | 16,986 | 16,986 |
| Repayment of current liabilities, cash flow items | -638 | -14,779 | -31,968 |
| Drawdown of current liabilities, cash flow items | − | 10,000 | 15,000 |
| Increases in current liabilities, non-cash flow items | 29 | 66 | 276 |
| Decreases of current liabilities, non-cash flow items | -13 | − | -625 |
| Reclassification from non-current liabilities | 622 | 770 | 3,001 |
| Exchange rate difference, non-cash flow item | 44 | 23 | -130 |
| Current liabilities at the end of the period | 2,584 | 13,066 | 2,539 |
| Non-current liabilities at the beginning of the period | 14,892 | 10,464 | 10,464 |
| Increases in non-current liabilities, non-cash flow items | 68 | 79 | 7,744 |
| Decreases of non-current liabilities, non-cash flow items | -4 | − | -3 |
| Reclassification to current liabilities | -622 | -770 | -3,001 |
| Exchange rate difference, non-cash flow item | 308 | 61 | -312 |
| Non-current liabilities at the end of the period | 14,642 | 9,835 | 14,892 |
| Non-current debentures at the beginning of the period | 82,862 | 81,714 | 81,714 |
| Periodization of debenture to amortized cost, non-cash flow items | 293 | 280 | 1,148 |
| Non-current debentures at the end of the period | 83,155 | 81,994 | 82,862 |
| Total interest-bearing liabilities at the end of the period | 100,381 | 104,893 | 100,293 |
CONTINGENT LIABILITIES
| EUR thousand | 31.3.2021 | 31.3.2020 | 31.12.2020 | |
| Other commitments | ||||
| Rental obligations | 124 | 181 | 104 | |
| Contractual commitments to acquire property, plant and equipment | 4,442 | − | 6,586 | |
| Commitments to leases not yet commenced | 117 | − | 34 | |
| Guarantees | ||||
| On own behalf | 3,922 | 8,492 | 4,317 | |
| Other own commitments | 31,304 | 32,197 | 33,452 | |
| Total | 35,226 | 40,689 | 37,769 |
NOMINAL AND FAIR VALUES OF DERIVATIVE INSTRUMENTS
| 31.3.2021 | 31.3.2020 | 31.12.2020 | ||||
| EUR thousand | Nominal value | Fair value | Nominal value | Fair value | Nominal value | Fair value |
| Currency forward contracts | ||||||
| Hedge accounting not applied | 2,729 | -66 | 4,431 | -44 | 2,991 | 60 |
FINANCIAL ASSETS BY CATEGORY
| a. Fair value through profit or loss |
| b. Financial assets at amortized cost |
| c. Financial assets at fair value through other comprehensive income |
| d. Carrying amount |
| e. Fair value |
| Classification | |||||
| EUR thousand | a. | b. | c. | d. | e. |
| Equity instruments | − | − | 421 | 421 | 421 |
| Trade receivables | − | 55,432 | − | 55,432 | 55,432 |
| Interest and other financial receivables | − | 340 | − | 340 | 340 |
| Cash and cash equivalents | − | 81,999 | − | 81,999 | 81,999 |
| Total 31.3.2021 | − | 137,771 | 421 | 138,192 | 138,192 |
| EUR thousand | a. | b. | c. | d. | e. |
| Equity instruments | 347 | − | 421 | 768 | 768 |
| Loan receivables | 3,476 | 3,978 | − | 7,454 | 7,454 |
| Trade receivables | − | 51,128 | − | 51,128 | 51,128 |
| Derivative receivables | 61 | − | − | 61 | 61 |
| Interest and other financial receivables | − | 378 | − | 378 | 378 |
| Cash and cash equivalents | − | 57,877 | − | 57,877 | 57,877 |
| Total 31.12.2020 | 3,885 | 113,360 | 421 | 117,666 | 117,666 |
Principles in estimating fair value of financial assets for 2021 are the same as those used for preparing the consolidated financial statements for 2020.
FINANCIAL LIABILITIES
| 31.3.2021 | 31.12.2020 | |||||
| EUR thousand | Carrying amount | Fair value | Nominal value | Carrying amount | Fair value | Nominal value |
| Non-current financial liabilities | ||||||
| Debentures | 83,155 | 87,669 | 85,000 | 82,862 | 87,661 | 85,000 |
| Lease liabilities | 14,642 | 14,642 | 14,642 | 14,892 | 14,892 | 14,892 |
| Total non-current financial liabilities | 97,797 | 102,311 | 99,642 | 97,754 | 102,553 | 99,892 |
Current financial liabilities | ||||||
| Lease liabilities | 2,584 | 2,584 | 2,584 | 2,539 | 2,539 | 2,539 |
| Interest accruals | 1,060 | 1,060 | 1,060 | 522 | 522 | 522 |
| Derivative liabilities | 66 | 66 | 66 | 1 | 1 | 1 |
| Other current liabilities | 639 | 639 | 639 | 552 | 552 | 552 |
| Trade payables | 51,134 | 51,134 | 51,134 | 42,024 | 42,024 | 42,024 |
| Total current financial liabilities | 55,484 | 55,484 | 55,484 | 45,639 | 45,639 | 45,639 |
| Total | 153,280 | 157,795 | 155,126 | 143,393 | 148,191 | 145,531 |
Principles in estimating fair value for financial liabilities for 2021 are the same as those used for preparing the consolidated financial statements for 2020.
FAIR VALUE MEASUREMENT HIERARCHY
| EUR thousands | Level 1 | Level 2 | Level 3 |
| Equity instruments | − | − | 421 |
| Total | − | − | 421 |
| Derivatives at fair value | |||
| Currency derivatives, liabilities | − | -66 | − |
| Total | − | -66 | − |
Principles in estimating fair value of financial assets and their hierarchies for 2021 are the same as those used for preparing the consolidated financial statements for 2020.
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:
Petri Helsky, President & CEO, tel. +358 10 214 3080
Toni Tamminen, CFO, tel. +358 10 214 3051
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 are present in people’s daily life worldwide. Suominen’s net sales in 2020 were EUR 458.9 million and we have nearly 700 professionals working in Europe and in the Americas. Suominen’s shares are listed on Nasdaq Helsinki. Read more at www.suominen.fi.
Distribution:
Nasdaq Helsinki
Main media
www.suominen.fi
Attachment
01-Suominen Corporation Interim report Q1 2021_FINAL.pdf
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