Half Year 2024 Suominen Oyj Earnings Call Transcript
Key Points
- Suominen Oyj (FRA:1S0) reported a 5% increase in net sales for Q2 2024, reaching EUR 118.7 million, driven by increased volumes, particularly in the United States.
- The company's comparable EBITDA improved to EUR 5 million in Q2 2024, up from EUR 2.7 million in the previous year, due to higher sales volumes and an improved sales mix.
- New product sales, which have been commercialized in the past three years, accounted for 37% of net sales, indicating successful portfolio reshaping towards more sustainable products.
- The company announced a new investment in Alicante to increase capacity for sustainable products, with an expected completion in the second half of 2025, reinforcing its strategic focus on sustainability.
- Suominen Oyj (FRA:1S0) maintains a positive outlook for 2024, expecting profitability (EBITDA) to increase from EUR 15.8 million in 2023, despite market uncertainties.
- Cash flow from operations was EUR 2.1 million in Q2 2024, significantly lower than the EUR 6.4 million reported in the previous year, mainly due to negative changes in net working capital.
- The company faced challenges in internal efficiency actions, which impacted the overall improvement in EBITDA.
- Sales prices were lower due to decreased raw material prices, which affected overall revenue growth despite increased sales volumes.
- The Mozzate plant closure and restructuring program incurred EUR 1.2 million in severance costs during Q2 2024.
- The EMEA region experienced flat sales development in Q2 2024, with fierce competition and a stable but tough market environment.
Good day, and welcome to Suominen's Q2 results audiocast. My name is Julia Koivulanaho, and I'm the Interim Head of Suominen Communications. Next, our present and CEO, Tommi Björnman; and CFO, Janne Silonsaari, will present the results.
Janne, Tommi, the floor is yours.
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Thank you, Julia. And good morning, everybody. Thank you for joining this second-quarter 2024 release discussion. Agenda, yes, we will do so. Actually, I will go through the second quarter in brief as well as the first half of 2024. Then Janne will continue with the financial reviews, and then I will progress with the strategy and give you the outlook of 2024. And after that, Julia will take care of the questions and answers, if you may have any of them.
So if we look at the first -- the second quarter in brief, so we saw a 5% increase on our top line, then amounting EUR118.7 million, which was mainly driven by the increase of the volume and
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