Suominen advances recovery plan as sales rise

Suominen advances recovery plan as sales rise

Photo: Collected

Suominen Corporation, the Finland-based nonwovens roll goods manufacturer, has reported improved net sales and comparable EBITDA for the second quarter of 2026, supported by higher production volumes and an oversubscribed rights issue that strengthened its balance sheet.

Second-quarter net sales rose 5.8% year-on-year to €105.6 million, up from €99.8 million, while comparable EBITDA increased to €4.3 million from €3.2 million. For the first half of 2026, however, net sales fell 7.4% to €201.2 million, against €217.3 million a year earlier, reflecting continued pricing pressure earlier in the period.

The company attributed the quarterly improvement to higher output and early operational efficiency gains, alongside reduced fixed costs stemming from its Full Potential Program, a profitability initiative launched in January 2026 targeting a 10% EBITDA margin. The programme, which moved from planning into execution during the quarter, focuses on production and supply performance, operational efficiency, and commercial capability.

Suominen said geopolitical instability continued to disrupt raw material and energy supply chains during the half-year, pushing up input costs. In response, the company shifted from quarterly to monthly pricing mechanisms where feasible, though margin recovery lagged behind cost increases due to the inherent delay between rising costs and price adjustments passed to customers.

On the technical side, Suominen began qualification of a new production line at its Alicante, Spain, facility dedicated to sustainable nonwovens, following a delay caused by unspecified technical issues.

Elsewhere, the company’s Nakkila plant in Finland received the highest classification from the Vision Zero Forum, recognising long-term systematic workplace safety practices. Its Paulínia facility in Brazil marked 14 years without a lost-time accident and was named, for the third consecutive year, in the Great Place to Work awards.

Financially, Suominen completed an oversubscribed rights issue at the end of the second quarter, raising gross proceeds of approximately €28 million in early July.

Suominen manufactures nonwovens as roll goods primarily for wipes and related hygiene and technical applications, supplying converters and brand owners across Europe and the Americas. The company employs close to 700 people and reported full-year 2025 net sales of €412.4 million, with a comparable operating loss of € 1.6 million for the first half of 2026.

President and CEO Charles Héaulmé said: “The capital raise represents an important step in strengthening the company’s financial position and supporting the execution of our strategy. We remain focused and committed to improving performance and creating sustainable value for our customers and stakeholders”.

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Source: Online/NAN