Finland's Suominen's 9M sales drop 8% to $367.83 mn amid weaker demand

Comparable EBITDA dropped to €10.7 million (~$12.41 million), reflecting lower volumes and higher input costs, partly offset by better pricing and sales mix. The company reported an operating loss of €2.7 million and a net loss of €8.2 million.

Cash flow from operations turned positive at €5.2 million, aided by working capital improvements, particularly in trade receivables. Capital expenditure rose to €17 million, largely attributed to ongoing investments at Bethune, US, and Alicante, Spain, supporting future growth and sustainability initiatives, Suominen said in a press release.

The company’s net interest-bearing liabilities increased to €76.1 million, raising gearing to 76 per cent from 57.1 per cent last year. In June, Suominen secured a new €100 million syndicated credit facility from Danske Bank and Nordea Bank, providing financial flexibility for strategic initiatives.

In the third quarter (Q3), Suominen’s net sales decreased 11 per cent YoY to €99.8 million (~$115.77 million), as production disruptions in the US and weaker demand persisted. The Americas business area contributed €60.3 million, while Europe, Middle East, and Africa (EMEA) accounted for €39.5 million.

Comparable EBITDA in Q3 improved slightly to €3.4 million, as lower raw material prices offset reduced volumes. However, exceptional events—including an equipment failure at one plant and flooding at another—had a combined negative impact of €2.8 million on quarterly EBITDA.

Despite these setbacks, cash flow from operations surged to €15.7 million from –€2.6 million, driven by a €13.9 million improvement in working capital efficiency. The company’s ongoing €10 million cost-saving programme, launched in May 2025, remains on track to achieve most of its planned measures by year-end.

“Nonwoven demand has historically been stronger in the second half of the year. However, after the supply chain disruption during the first half, the third-quarter volume recovery progressed slower than anticipated,” said Charles Heaulme, president and CEO of Suominen Corporation who assumed leadership role on August 11, 2025.

He noted that the two major US incidents had a clear negative impact on supply capability but reaffirmed confidence in the company’s turnaround strategy.

“We have accelerated the execution of our cost-saving programme and are focused on restoring profitability. Sustainability continues to be central to our strategy, with 30 per cent of Q3 net sales derived from products launched within the last three years,” added Heaulme.

Suominen aims to achieve zero manufacturing waste to landfill by 2030 and source over two-thirds of raw materials from plant-based resources. The company also reported one lost-time accident (LTA) during the first nine months, underscoring its commitment to workplace safety, added the release.

Suominen revised its outlook on October 15, now expecting its comparable EBITDA to be lower than in 2024, reversing earlier projections of improvement. The downgrade reflects slower-than-expected market recovery, currency pressures, and operational disruptions in the US.

“Given the slower market recovery and the incidents in our plants, we have adjusted our guidance. As we move forward, our priority remains driving the turnaround, improving cost efficiency, and strengthening Suominen’s performance,” concluded Heaulme.

ALCHEMPro News Desk (SG)