04.28.21
In January–March 2021, Suominen’s net sales increased by 5% from the comparison period to €115.3 million ($139 million) Sales volumes increased and also sales prices improved slightly, supported by sales mix. The negative impact from currencies on net sales was €8.1 million ($9.7 million).
Suominen has two business areas, Americas and Europe. Net sales of the Americas business area were €71.9 million ($86.8 million) and net sales of the Europe business area were €43.4 million ($52.4 million).
“The Covid-19 pandemic has increased consumption of nonwovens in all our markets and the demand is expected to continue on a high level,” says Petri Helsky, president & CEO of Suominen. “In the long term, Covid-19 may lead to a sustained increase in the use of nonwovens for cleaning and disinfection products. However, the risks related to the pandemic, such as possible shortages of raw materials, issues linked to logistics as well as potential closures of customers’ or our own plants due to virus infections or authority decisions remain relevant at least until there is broad enough vaccination coverage in the countries relevant to Suominen’s business. We have already been experiencing exceptional volatility in the cost and availability of raw materials and transportation.
“The three investment projects supporting our strategy by strengthening our capabilities in sustainable products and increasing our capacity that were announced last year, two in Italy and one in the USA, are proceeding as planned and will be finalized during the second half of 2021.”
Looking ahead, the company expects sales to remain strong. “However, we expect the increasing raw material and transportation costs to have an impact on our result, especially in the second quarter,” Helsky adds. “We are working continuously to mitigate this and to safeguard our profitability. For the full year our outlook is unchanged. The year has started off strong and we are in a good position to continue executing our strategy.”
Suominen has two business areas, Americas and Europe. Net sales of the Americas business area were €71.9 million ($86.8 million) and net sales of the Europe business area were €43.4 million ($52.4 million).
“The Covid-19 pandemic has increased consumption of nonwovens in all our markets and the demand is expected to continue on a high level,” says Petri Helsky, president & CEO of Suominen. “In the long term, Covid-19 may lead to a sustained increase in the use of nonwovens for cleaning and disinfection products. However, the risks related to the pandemic, such as possible shortages of raw materials, issues linked to logistics as well as potential closures of customers’ or our own plants due to virus infections or authority decisions remain relevant at least until there is broad enough vaccination coverage in the countries relevant to Suominen’s business. We have already been experiencing exceptional volatility in the cost and availability of raw materials and transportation.
“The three investment projects supporting our strategy by strengthening our capabilities in sustainable products and increasing our capacity that were announced last year, two in Italy and one in the USA, are proceeding as planned and will be finalized during the second half of 2021.”
Looking ahead, the company expects sales to remain strong. “However, we expect the increasing raw material and transportation costs to have an impact on our result, especially in the second quarter,” Helsky adds. “We are working continuously to mitigate this and to safeguard our profitability. For the full year our outlook is unchanged. The year has started off strong and we are in a good position to continue executing our strategy.”
