The weakening of the USD compared to euro, Suominen’s reporting currency, decreased the net sales of 2018 by €10.9 million, said a media statement by the company. Net sales of the convenience business area was €396.0 million and net sales of care business area was €35.1 million in 2018. The share of nonwovens for baby wipes declined to 39 per cent. The share of nonwovens for personal care wipes grew to 22 per cent and the share of home care wipes to 20 per cent. The share of workplace wipes remained at 9 per cent and medical and hygiene applications decreased to 8 per cent.
“Suominen’s main market areas are Europe and North America. In the euro area, the consumer confidence index declined throughout the year, being at the end of the financial year roughly at the level of the beginning of 2017. In the US, the consumer confidence index development was nearly flat in 2018, remaining, however, strong. Our nonwovens are, for the most part, used in daily consumer goods, and in these target markets the general economic situation and consumer confidence drive the development of consumer demand,” said Tapio Engström, senior vice president & CFO, Suominen. “Suominen’s net sales increased to €431.1 million. Our firm measures taken in pricing had a positive impact on our topline, even though they were counteracted by the weakening of the USD compared to euro. The measures taken in pricing can have an effect on our product portfolio and net sales as we are moving away from less profitable products.”
“Suominen is a globally leading player in the nonwovens industry which has in the past few years further improved its capabilities decisively. I see a lot of long term potential in the company and it is obvious that expectations for future success are high – both inside and outside of Suominen. Clearly, we have challenges to tackle but having now had the chance to start to truly familiarise myself with the company and to meet personally the members of Suominen team, I couldn’t be more excited. We are determined to take necessary measures in order to improve the company’s profitability,” said Petri Helsky, president & CEO of Suominen.
For 2019 Suominen expects that its net sales will be at the level of 2018 and comparable operating profit, excluding the positive effect of applying IFRS 16 leases, will improve from 2018. In 2018, Suominen’s net sales amounted to €431.1 million and operating profit to €4.6 million. In financial years 2018 and 2017 Suominen had no items affecting the comparability of the operating profit.
In 2018, Suominen introduced in total four new products or product concepts to the market. In September, it launched Suominen Intelligent Nonwovens - a unique concept in the world of nonwovens that embeds digital features into nonwovens. In the fourth quarter, Suominen launched Fibrella Cozy, Biolace Move and Biolace Cozy for absorbent hygiene products. Suominen also conducted successful trials at the new manufacturing line at Bethune, US plant related with the planned extension of the line’s product offering in the fourth quarter of 2018. (PC)
Fibre2Fashion News Desk – India