Q3 2024 Suominen Oyj Earnings Call Transcript
Key Points
- Suominen Oyj (OHEL:SUY1V) improved sales volume, sales prices, and sales margins in Q3, driven by successful commercial initiatives.
- The company achieved a gold medal level in the Ecovadis Assessment, highlighting its leadership in sustainability.
- A new production line is being added in Alicante, expected to be completed in the second half of 2025, indicating future capacity expansion.
- Despite operational issues, the company expects EBITDA to be better than last year, maintaining a positive outlook.
- Suominen Oyj (OHEL:SUY1V) has a strong presence in both the US and Europe, allowing it to mitigate geopolitical risks and maintain stable operations.
- Unexpected operational issues in Q3 led to a EUR3 million negative impact on EBITDA, which was below expectations.
- Cash flow from operations was negative EUR2.6 million, reflecting the operational challenges faced in the quarter.
- Currency fluctuations negatively impacted net sales by EUR1.4 million in Q3.
- The share of new products in sales decreased to 30% in Q3, down from the year-to-date average of 35%.
- Increased inventory levels, particularly in raw materials, have affected working capital due to global geopolitical uncertainties.
Good day, everybody. 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, there will be time for questions. Janne, Tommi, the floor is yours.
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Thank you. Thank you, Julia. Okay, welcome. Also, on my behalf to this third quarter, quarterly review.
So first, we will start that with the, with the brief introduction of the third quarter in in main points. After that, Jan will take over and look at the financial reviews. Then I will look at a little bit in deep, a little bit of strategy implementation as well as we will comment the outlook for 2024.
So the third quarter in brief, there was a positive progress, we were able to improve our sales volume, sales prices and sales margins which were mainly driven by the good initiatives done in the commercial excellence side. Also, we had some
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