Suominen (SUY1V) Q2 2024 earnings summary

Executive summary

• Net sales increased by 5% year-over-year in Q2 2024 to EUR 118.7 million, with H1 2024 net sales stable at EUR 232.3 million compared to H1 2023.

• Comparable EBITDA improved to EUR 5.0 million in Q2 (from EUR 2.7 million), and H1 comparable EBITDA reached EUR 9.5 million (from EUR 5.3 million), driven by higher volumes and better margins.

• Profitability remains challenged: Q2 operating profit was EUR -0.8 million (Q2 2023: EUR -6.7 million), and H1 profit for the period was EUR -2.9 million (H1 2023: EUR -12.1 million).

• Cash flow from operations was EUR 2.1 million in Q2, but nearly zero or slightly negative for H1 due to increased inventories and receivables.

• Ongoing transformation and restructuring programs are expected to generate annualized savings of EUR 1.5 million.

Financial highlights

• Q2 2024 net sales: EUR 118.7 million (+5% year-over-year); H1 2024: EUR 232.3 million (flat year-over-year).

• Q2 comparable EBITDA: EUR 5.0 million (Q2 2023: EUR 2.7 million); H1 comparable EBITDA: EUR 9.5 million (H1 2023: EUR 5.3 million).

• Q2 operating profit: EUR -0.8 million (Q2 2023: EUR -6.7 million); H1 operating profit: EUR -0.7 million (H1 2023: EUR -8.8 million).

• Q2 profit for the period: EUR -1.9 million (Q2 2023: EUR -8.2 million); H1: EUR -2.9 million (H1 2023: EUR -12.1 million).

• 37% of net sales from new products commercialized in the past three years.

Outlook and guidance

• Comparable EBITDA for 2024 is expected to increase from 2023 (EUR 15.8 million in 2023); outlook unchanged.

• Management expects continued gradual improvement in operational efficiency and margins.

• Market visibility and demand expected to remain stable, with some positive signs in the U.S. and stable but competitive conditions in Europe.

• H2 expected to see improvement in working capital and inventories.