The company operates through two primary business areas, with the Americas business area recording net sales of €70.9 million, down from €80.3 million, and the European business area seeing a more significant decline to €35.6 million from €51.7 million.
Despite the dip in net sales, Suominen's comparable EBITDA remained relatively stable at €5.2 million, mirroring the figures from the prior year. Operating profit, on the other hand, saw an increase to €0.6 million from €0.2 million, with comparable operating profit rising from €0.2 million to €0.7 million, the company said in its interim report for January 1 to September 30, 2023
Profit before income taxes swung to a loss of €0.5 million, in contrast to a profit of €0.1 million reported in the same quarter of the previous year. However, the reporting period ended with a profit of €0.8 million, reversing a loss of €0.4 million.
Looking at the first nine months of fiscal 2023, Suominen's net sales fell by 7 per cent to €335.9 million from €360.2 million, with currencies having a negative impact of €3.3 million. The Americas business area experienced a slight increase in net sales, reaching €215.7 million, but Europe's figures significantly dropped to €120.2 million from €154.1 million.
Comparable EBITDA for the nine-month period was €10.5 million, a marginal increase from €10.3 million, with a positive currency impact of €0.7 million. However, overall EBITDA fell to €5.9 million from the previous year's €10.3 million. The company's operating performance showed an improvement in comparable operating profit to a loss of €3.4 million from a loss of €4 million, while the total operating profit declined to a loss of €8.2 million due to comparability adjustments of €4.8 million.
The profit before income taxes for the nine months tallied at a loss of €12.2 million, deepening from a loss of €4.3 million in the prior year, and the profit for the period also worsened to a loss of €11.4 million from a loss of €5.1 million.
Suominen maintains its outlook for fiscal 2023, anticipating an increase in comparable EBITDA from €15.3 million reported in FY22.
“The third quarter showed signs of improved profitability. Our quarterly comparable EBITDA improved slightly to EUR 5.2 million being at the highest level since the fourth quarter of 2021. EBITDA improvement is mainly due to the increased sales margins,” said Tommi Bjornman, president and CEO.
Fibre2Fashion News Desk (DP)