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Third party research

Suominen: Q1 in line with consensus expectations - EUR 10m cost savings programme - Nordea

Suominen

This is a third party research report and does not necessarily reflect our views or values

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Suominen Q1 comparable EBITDA of EUR 4.1m came fairly in line with Vara Research consensus expectation of EUR 4.2m. Net sales of EUR 118m increased 3% y/y and came 2% above consensus expectations, supported by higher raw materials and improved mix while burdened by lower volumes y/y. The company notes volatile market sentiment with cautious customers while it has seen stable demand for its products during Q1. FX had a slightly positive impact on top line while EUR 0.5m negative impact on EBITDA. Americas sales were stronger than we had anticipated while EMEA came in line with our expectations. Stock levels of Asian imported goods are increasing in both business areas which could burden pricing, we believe. The company maintained its guidance for increasing comparable EBITDA in 2025 intact, while consensus has modelled EUR 24.5m in 2025E after EUR 17.0m in 2024. In addition, the company initiates EUR 10m costs savings programme, fully implemented within 24 months. Initially, we expect muted consensus revisions while cost savings programme could be viewed positively.
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