Helsinki, Finland, 2016-08-09 11:00 CEST (GLOBE NEWSWIRE) --
Suominen Corporation Half-Year Financial Report 9 August 2016 at 12:00 noon (EEST)
Suominen Corporation’s Half-Year Financial Report for January 1 - June 30, 2016:
Net sales and operating profit for Q2 decreased from the record-high comparison period, cash flow from operations nearly doubled
KEY FIGURES
| 4-6/ | 4-6/ | 1-6/ | 1-6/ | 1-12/ | |
| 2016 | 2015 | 2016 | 2015 | 2015 | |
| Net sales, EUR million | 108.8 | 112.9 | 212.7 | 224.9 | 444.0 |
| Comparable operating profit, EUR million | 8.7 | 9.9 | 14.2 | 17.2 | 31.2 |
| Operating profit, EUR million | 8.7 | 10.5 | 14.2 | 17.8 | 31.8 |
| Profit for the period, EUR million | 5.2 | 6.2 | 8.7 | 9.7 | 17.0 |
| Earnings per share, basic, EUR * | 0.10 | 0.12 | 0.16 | 0.18 | 0.32 |
| Earnings per share, diluted, EUR * | 0.09 | 0.11 | 0.15 | 0.17 | 0.29 |
| Cash flow from operations per share, EUR * | 0.15 | 0.08 | 0.33 | 0.17 | 0.54 |
| Return on invested capital, rolling 12 months, % ** | − | − | 13.5 | 17.1 | 15.9 |
| Gearing, % | − | − | 24.5 | 28.2 | 25.9 |
|
* Adjusted due to the reverse share split ** 2015 continuing operations |
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In this financial report, figures shown in brackets refer to the comparison period last year if not otherwise stated.
Highlights in April–June 2016:
- Net sales decreased by 4% to EUR 108.8 million (112.9).
- Comparable operating profit decreased by 13% to EUR 8.7 million (9.9).
- Cash flow from operations nearly doubled to EUR 7.6 million (3.9).
- Both financial targets monitored on a quarterly basis, return on invested capital and gearing ratio, surpassed their target levels.
- The investment in a new production line at the Bethune plant in the US advanced, customer deliveries planned to commence in the first quarter of 2017.
- The total value of the growth investment program is estimated to exceed EUR 60 million.
- Suominen repeats its previous estimate, disclosed on 28 April 2016, that for the full year 2016 the company expects its net sales and comparable operating profit to improve from year 2015. In 2015, Suominen’s net sales amounted to EUR 444.0 million and comparable operating profit to EUR 31.2 million. The calculation of comparable operating profit equals to the calculation of previously reported operating profit excluding non-recurring items and is explained in the disclosures of this report.
Nina Kopola, President & CEO, comments on Suominen’s second quarter of 2016:
“In the second quarter of 2016, the consumer confidence index in the euro zone was behind the level of the corresponding period last year, but rose slightly from the first quarter of 2016. In the United States, the consumer confidence index showed relatively stable development, but remained slightly below the level of the comparison period. Europe and North America are Suominen’s largest market areas.
As we reported in the previous financial report, the sluggish demand early in the year began to show signs of picking up at the end of the first quarter. I am pleased that this positive development carried through into the second quarter. We expect the same trend to continue through the rest of the year and, consequently, our net sales of full year 2016 to improve from year 2015.
As demand improved, Suominen’s net sales grew from the first quarter, but nevertheless declined of the strong level of the comparison period, and amounted to EUR 108.8 million. Sales volumes were on par with the high figures of the comparison period. Gross profit improved from Q1 of 2016, but did not reach the level of the comparison period, which again affected operating profit. Cash flow from operations was once again strong and nearly doubled from the comparison period, reaching EUR 7.6 million.
Suominen has three financial targets: organic net sales growth, return on invested capital and gearing ratio. We follow up on the latter two targets on a quarterly basis, and net sales growth on an annual level. The return on investments exceeded the target level (> 12%) and was 13.5%. Our gearing was once again lower than our target range (40–80%), at 24.5%.
We combined our nonwoven range for workplace wiping applications under the suominen@work product concept. Suominen@work nonwovens are used, for instance, in wiping products used by fast-food restaurants, healthcare facilities and factory workshops. The new product concept allows us to serve our customers in an increasingly targeted way. Our investments in both the Alicante plant in Spain and the Bethune plant in the United States will enhance our capacity to serve the market for nonwovens for wipes intended for professional applications, which is expected to grow, depending on the region and end use, by as much as 7% per year. Reinforcing this product group in our portfolio clearly supports our strategy, which aims for an increased share of products with higher added value in our net sales.
The largest project in our investment program, a new wetlaid line at the Bethune plant in the US, proceeded and we expect the equipment installations to be completed by the end of this year. According to our plan, customer deliveries will begin in the first quarter of 2017. Our previously disclosed estimate of the total value of the project, close to EUR 50 million, is anticipated to be exceeded and consequently, the value of the entire growth investment program is expected to surpass EUR 60 million. This is due to an unexpectedly rapid increase in labor costs in South Carolina, improvements made to the production line during the project and other additional works made at the plant. The higher cost estimate has no impact on the financing arrangements of the project.”
NET SALES
April–June 2016
In April–June 2016, Suominen’s net sales declined by 4% from the comparison period last year to EUR 108.8 million (112.9). Net sales were mainly affected by decreased sales prices and fluctuations in USD/EUR exchange rate. The changes in US dollar exchange rate compared to euro decreased net sales by EUR 1.4 million from the comparison period. The demand improved from the dip experienced in the first quarter of 2016.
Suominen has two business areas, Convenience and Care. Convenience business area supplies nonwovens as roll goods for a wide range of wiping products. Care business area manufactures nonwovens for hygiene products and medical applications. Net sales of the Convenience business area were EUR 100.8 million (104.5) and net sales of the Care business area EUR 8.0 million (8.4).
January–June 2016
In January–June 2016, Suominen’s net sales decreased by 5% from the comparison period last year to EUR 212.7 million (224.9). Net sales were affected by both lower sales prices and volumes compared to last year, approximately in equal proportions. In the first year-half, demand fell short of the strong level of comparison period, particularly due to the soft first quarter of 2016. The changes in US dollar exchange rate had no effect on the net sales during January–June 2016.
Net sales of the Convenience business area were EUR 196.3 million (207.7) and net sales of the Care business area EUR 16.3 million (17.2).
The main application areas for nonwoven materials supplied by Suominen in January-June were baby wipes (accounting for 38% of the sales), personal care wipes (24%), household wipes (18%), wipes for workplace use (11%), and hygiene and medical products (8%). All nonwovens for wiping products belong to the Convenience business area and nonwovens for hygiene and medical products to the Care business area.
The share of nonwovens for baby wipes in the net sales decreased from the comparison period by two percentage points. Of the products with higher added value, nonwovens for household and workplace wipes increased their respective shares in the portfolio. The changes in the product portfolio were in line with Suominen’s strategy.
OPERATING PROFIT AND RESULT
April–June 2016
The comparable operating profit decreased by 13% and amounted to EUR 8.7 million (9.9). Operating profit declined by 17% to EUR 8.7 million (10.5). There were no items affecting comparability during the second quarter of 2016. The operating profit of the comparison period last year was improved by the reversal of the impairment loss due to re-opening of a production line in Nakkila plant in Finland, which has been eliminated from the comparable operating profit of the corresponding period in 2015. Lower net sales and decrease in gross profit affected operating profit. USD/EUR exchange rate fluctuation had no material impact on operating profit.
Profit before income taxes was EUR 7.7 million (9.4), and profit for the quarter was EUR 5.2 million (6.2).
January–June 2016
The comparable operating profit fell by 18% to EUR 14.2 million (17.2). Operating profit decreased by 20% and amounted to EUR 14.2 million (17.8). There were no items affecting comparability during the first half of 2016. The operating profit of the comparison period last year was improved by the reversal of the impairment loss due to re-opening of a production line in Nakkila plant in Finland, which has been eliminated from the comparable operating profit of the corresponding period in 2015. Lower net sales and decrease in gross profit affected operating profit. USD/EUR exchange rate fluctuation had no impact on operating profit.
In January–June, profit before income taxes was EUR 13.0 million (15.1), and profit for the reporting period was EUR 8.7 million (9.7). Decrease in financial expenses and income taxes improved the profit for the period.
FINANCING
The Group’s net interest-bearing liabilities amounted to EUR 32.0 million (33.7) at the end of the review period. The gearing ratio was 24.5% (28.2%) and the equity ratio 43.6% (43.4%).
In January–June, net financial expenses were EUR -1.2 million (-2.7), or 0.6% (1.2%) of net sales. Fluctuations in exchange rates decreased the financial items by EUR 0.4 million, while in the comparison period they increased the financial expenses by EUR 0.5 million. In addition, financial expenses in the previous year increased also by EUR -0.5 million as an impairment loss of shares in a real estate company was recognized.
Cash flow from operations in April–June was EUR 7.6 million (3.9) and in January–June EUR 16.7 million (8.4), representing a cash flow per share of EUR 0.33 (0.17). The improvement in the cash flow from operations was mainly due to the decrease in paid financial items and income taxes as well as to the fact that less working capital was tied up during the reporting period than during the corresponding period in the previous year. The financial items in the cash flow from operations, in total EUR -1.9 million (-5.0), were principally impacted by the interests of the debenture bond paid during the reporting period, while in the corresponding period in the previous year the paid financial items were burdened also by payments related to currency forward contracts hedging equity. In the first year-half, EUR 3.2 million was tied up in working capital (9.3).
CAPITAL EXPENDITURE
The gross capital expenditure totaled EUR 11.6 million (3.8) and was mainly related to the investment in a new production line at the Bethune, SC, USA plant. In addition, Suominen is in the process of renewing its ICT systems. Other investments were mainly for maintenance. Depreciation and amortization for the review period amounted to EUR 9.1 million (8.9). In addition, due to the re-opening of a production line in Nakkila plant, previously made impairment losses were reversed in 2015. The reversal amounted to EUR 0.5 million.
INFORMATION ON SHARES AND SHARE CAPITAL
Share capital
After the reverse share split, the number of Suominen’s registered shares was 51,216,232 shares on 30 June 2016, equaling to a share capital of EUR 11,860,056.00.
Reverse share split
The Annual General Meeting of Suominen Corporation held on 16 March 2016 decided to reduce the number of shares in the company without reducing share capital in a reverse share split procedure pursuant to the Chapter 15, Section 9 of the Limited Liability Companies Act (624/2005) so that each five (5) shares shall be merged as one (1) share.
Before the reverse share split, Suominen Corporation had in total 252,425,616 shares. After the reverse share split, the total number of shares in Suominen Corporation is 51,216,232. The new number of shares was registered with the Trade Register on 22 March 2016 and trading with the merged shares commenced on the same day. The reverse split did not have an impact on the treasury shares held by Suominen (913,886 shares at the date of the reverse split). In accordance with the Limited Liability Companies Act, treasury shares do not entitle to shareholder rights, such as right to receive dividend or other distribution of funds, or right to attend General Meeting.
The purpose of merging the shares is to increase the interest for the company’s shares, facilitate the trade in the shares and to increase flexibility in defining the amount of dividend.
Share trading and price
The number of Suominen Corporation shares traded on Nasdaq Helsinki from 1 January to 30 June 2016 was 8,754,693 shares, accounting for 17.4% of the average number of shares (excluding treasury shares). The highest price was EUR 6.20, the lowest EUR 3.61 and the volume-weighted average price EUR 4.38. The closing price at the end of review period was EUR 4.02. The market capitalization (excluding treasury shares) was EUR 202.3 million on 30 June 2016.
Treasury shares
On 30 June 2016, Suominen Corporation held 893,087 treasury shares. In accordance with the resolution by the Annual General Meeting, in total 20,799 shares were transferred to the members of the Board of Directors as their remuneration payable in shares during the reporting period.
Hybrid bond
In February 2014, Suominen Corporation issued a convertible hybrid bond of EUR 17.5 million. The holders of the bond notes are entitled to convert the notes and the potential accrued capitalized interest related to the notes into Suominen shares. The conversion period started on 11 February 2014 and will end on 10 February 2018.
The number of shares in Suominen may increase in total by maximum of 7,600,320 shares on the basis of the conversion of the remaining bond notes and the potential capitalized interest, if the conversion is carried out by issuing new shares in Suominen.
Share-based incentive plans for the management and key employees
The Group management and key employees participate the company’s share-based incentive plan. The share-based incentive plan is divided into Performance Share Plan and Matching Share Plan. The plans are described in detail in the Financial Statements 2015 and in the Remuneration Statement 2015 of Suominen Corporation, available on the company’s website, www.suominen.fi > Investors > Corporate Governance.
The terms and conditions of the share-based incentive plans have been technically adjusted after the reverse share split carried out in the review period.
ANNUAL GENERAL MEETING
The Annual General Meeting (AGM) of Suominen Corporation was held on 16 March 2016. The AGM decided that a dividend or EUR 0.02 per share will be paid for the financial year 2015.
The AGM adopted the financial statements and the consolidated financial statements for the financial year 2015 and discharged the members of the Board of Directors and the President & CEO from liability.
The AGM confirmed the number of members of the Board of Directors to be six (6). The AGM re-elected Mr. Andreas Ahlström, Mr. Risto Anttonen, Mr. Jorma Eloranta, Mr. Hannu Kasurinen, Ms. Laura Raitio and Ms. Jaana Tuominen as members of the Board of Directors for the next term of office, expiring at the end of the first Annual General Meeting following their election. The remuneration of the members of the Board of Directors was resolved to remain unchanged. The resolutions were in accordance with the proposals submitted by the Nomination Board of shareholders of Suominen.
Ernst & Young Oy, accountant firm, was elected as auditor of Suominen Corporation, with Ms. Kristina Sandin, Authorized Public Accountant, as the principal auditor.
Constitutive meeting and permanent committees of the Board of Directors
In its constitutive meeting held after the Annual General Meeting on 16 March 2016, the Board of Directors elected from among its members a Chair and Deputy Chair as well as members for the Audit Committee and Personnel and Remuneration Committee.
The Board of Directors re-elected Jorma Eloranta as Chair and Risto Anttonen as Deputy Chair of the Board of Directors, in accordance with the recommendation by the Nomination Board of Suominen’s shareholders.
Hannu Kasurinen was re-elected as Chair of the Audit Committee. Andreas Ahlström was re-elected and Jaana Tuominen elected as members of the Audit Committee. Jorma Eloranta was re-elected as Chair of the Personnel and Remuneration Committee. Risto Anttonen was re-elected and Laura Raitio elected as members.
Authorizations of the Board of Directors
The Annual General Meeting (AGM) held on 16 March 2016 authorized the Board of Directors to repurchase a maximum of 400,000 of the company’s own shares. The shares shall be repurchased to be used in company’s share-based incentive programs, in order to disburse the remuneration of the members of the Board of Directors, for use as consideration in acquisitions related to the company’s business, or to be held by the company, to be conveyed by other means or to be cancelled. The company’s own shares shall be repurchased otherwise than in proportion to the holdings of the shareholders by using the non-restricted equity through trading on regulated market organized by Nasdaq Helsinki Ltd at the market price prevailing at the time of acquisition. The repurchase authorization is valid until 30 June 2017.
The AGM held on 16 March 2016 authorized the Board of Directors to decide on issuing new shares and/or conveying the company’s own shares held by the company and/or granting special rights entitling to shares referred to in Chapter 10, Section 1 of the Finnish Limited Liability Companies Act. New shares may be issued and/or company’s own shares held by the company or its group company may be conveyed at the maximum amount of 5,000,000 shares in aggregate. The maximum number of new shares that may be subscribed and own shares held by the company that may be conveyed by virtue of the options and other special rights granted by the company is 5,000,000 shares in total which number is included in the maximum number stated earlier. The authorization is valid until 30 June 2019.
NOTIFICATIONS UNDER CHAPTER 9, SECTION 5 OF THE SECURITIES MARKET ACT
On 10 June 2016, Suominen Corporation received a notification in accordance with Chapter 9, Section 5 of the Securities Market Act. According to the notification, the total shareholding of Mr Erkki Etola and companies under his controlling power in Suominen Corporation has exceeded the 10% flagging threshold. According to the notification, Mr Erkki Etola and companies under his controlling power (Oy Etra Invest Ab and Tiiviste-Group Oy) hold 4,139,164 shares and votes directly (8.08% of all shares and votes) and 1,477,080 shares and votes through financial instruments (2.88% of all shares and votes).
BUSINESS RISKS AND UNCERTAINTIES
The estimate on the development of Suominen’s net sales is partially based on forecasts and delivery plans received from the company’s customers. Changes in these forecasts and plans, resulting from changes in the market conditions or in customers’ inventory levels, may affect Suominen’s net sales. Due to the continued uncertainty in the general economic situation and the cautious consumer purchasing habits, the forecasts include uncertainty.
Suominen’s customer base is fairly concentrated, which adds to the customer-specific risk. Long-term contracts are preferred in the case of the largest customers. In practice, the customer relationships are long-term and last for several years.
The relevance of the United States in Suominen’s business operations increases the significance of the exchange rate risk related to USD in the Group’s total exchange risk position. Suominen hedges this foreign exchange position in accordance with its hedging policy.
The risks that are characteristic to South American region, including significant changes in business environment or exchange rates, could have an impact on Suominen’s operations in Brazil.
Suominen purchases significant amounts of pulp- and oil-based raw materials annually. Raw materials are the largest cost item for operations. Rapid changes in the global market prices of raw materials have an impact on the company’s profitability. The price fluctuations affect Suominen’s financial result quickly, as the company’s stocks equal to two to four weeks’ consumption and passing the price changes on to the prices Suominen charges its contract customers takes between two to five months.
Extended interruptions in the supply of Suominen’s main raw materials could disrupt production and have a negative impact on the Group’s overall business operations. As Suominen sources its raw materials from a number of major international suppliers, significant interruptions are unlikely.
Suominen has numerous regional, national and international competitors in its different product groups. There is currently oversupply in several product groups, particularly in Europe. If Suominen is not able to compete through an attractive product offering, it may lose some of its market share, and the competition may lead to increased pricing pressure on the company’s products.
The Group’s damage risks are insured in order to guarantee the continuity of operations. Suominen has valid damage and business interruption insurance according to which it is estimated that the damages can be covered and the financial losses caused by an interruption compensated.
Suominen performs goodwill impairment testing annually. In impairment testing the recoverable amounts are determined as the value in use, which comprises of the discounted projected future cash flows. Actual cash flows can differ from the discounted projected future cash flows. Uncertainties related to the projected future cash flows include, among others, the long economic useful life of the assets as well as the changes in the forecasted sales prices of Suominen’s products, production costs as well as discount rates used in testing. Due to the uncertainty inherent in the future, it is possible that Suominen’s recoverable amounts will be insufficient to cover the carrying amounts of assets, particularly goodwill. If this happens, it will be necessary to recognize an impairment loss, which, when implemented, will weaken the result and equity.
The Group’s financial risks consist of foreign exchange, interest rate, credit, counterparty, liquidity and commodity risks. Due to the international scope of the business, the Group has risks arising from fluctuations in foreign exchange rates. The effect of changes in interest rate levels on Group result represent an interest rate risk. Credit and counterparty risks arise mainly from risks associated with the payment period granted to customers and, in the case of loan receivables, from the ability of the counterparty to repay the loans. Liquidity risk is the risk that the Group’s negotiated credit facilities are insufficient to cover the financial needs of the business or that obtaining new funding for these needs will cause a significant increase in financing costs.
General risks related to business operations are described in the Report of the Board of Directors 2015.
BUSINESS ENVIRONMENT
Suominen’s nonwovens are, for the most part, used in daily consumer goods, such as wet wipes as well as in hygiene and medical products. In these target markets of Suominen, the general economic situation determines the development of consumer demand, even though the demand for consumer goods is not very cyclical in nature. North America and Europe are the largest market areas for Suominen. At these market areas, the growth in the demand for nonwovens has typically exceeded the growth of gross domestic product by a couple of percentage points. Moreover, Suominen has operated in the growing South American markets since 2014.
In the second quarter of 2016, the consumer confidence index in the euro zone was behind the level of the corresponding period last year, but rose slightly from the first quarter of 2016. In the United States, the consumer confidence index showed relatively stable development, but remained slightly below the level of the comparison period.
Suominen assesses the trend in the demand for its products on the basis of both the general market situation and, above all, on the basis of the framework agreements drawn up with its customers. As Suominen disclosed earlier, in the beginning of 2016 the demand was not at the level of the comparison period which also affected the competitive situation. However, the company expects the situation to be temporary as demand improved in the second quarter from the first quarter level.
At large, the growth in the demand in Suominen’s target markets is expected to continue in 2016, on average, at the pace of 2015.
OUTLOOK FOR 2016
Suominen repeats its previous estimate, disclosed on 28 April 2016, that for the full year 2016 the company expects its net sales and comparable operating profit to improve from year 2015.
In 2015, Suominen’s net sales amounted to EUR 444.0 million and comparable operating profit to EUR 31.2 million. The calculation of comparable operating profit equals to the calculation of previously reported operating profit excluding non-recurring items and is explained in the disclosures of this report.
ANALYST AND PRESS CONFERENCE
Nina Kopola, President & CEO, and Tapio Engström, CFO, will present Suominen’s financial result for Q2 2016 in Finnish at an analyst and press conference in Helsinki today on 9 August at 2:00 pm (EEST). The conference will take place at Suominen’s Helsinki office, address Itämerentori 2. The presentation material will be available after the analyst and press conference at www.suominen.fi.
A teleconference and a webcast on the Q2 2016 financial result will be held today on 9 August at 4:00 pm (EEST). The conference can be attended by phone at +44 20 3059 8125 (password: Suominen) and it is held in English. The conference can be accessed also at www.suominen.fi/webcast.
A replay of the conference can be accessed shortly after the conference has ended at www.suominen.fi or by phone at +44 121 260 4861, using access code 3876705#.
NEXT FINANCIAL REPORT
Suominen Corporation will publish its Interim report for January–October 2016 on 27 October 2016 approximately at 8:00 am (EEST).
SUOMINEN GROUP 1 JANUARY–30 JUNE 2016
This half-year financial report has been prepared in accordance with the principles defined in IAS 34 Interim Financial Reporting. The principles for preparing the half year financial report are the same as those used for preparing the consolidated financial statements for 2015. Changes to published accounting standards and interpretations, together with the new accounting standards that came into force on 1 January 2016, are presented in the consolidated financial statements for 2015.
The figures in these interim financial statements are mainly presented in EUR thousands. As a result of rounding differences, the figures presented in the tables do not necessarily add up to total.
This half year financial report has not been audited.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| EUR thousands | 30.6.2016 | 30.6.2015 | 31.12.2015 |
| Assets | |||
| Non-current assets | |||
| Goodwill | 15,496 | 15,496 | 15,496 |
| Intangible assets | 13,385 | 12,601 | 13,275 |
| Property, plant and equipment | 100,499 | 88,297 | 97,931 |
| Loan receivables | 7,093 | 8,202 | 7,793 |
| Available-for-sale assets | 777 | 806 | 777 |
| Held-to-maturity investments | − | 465 | − |
| Other non-current receivables | 2,327 | 2,389 | 2,402 |
| Deferred tax assets | 4,330 | 5,189 | 4,491 |
| Total non-current assets | 143,907 | 133,445 | 142,165 |
| Current assets | |||
| Inventories | 32,739 | 32,322 | 32,557 |
| Trade receivables | 57,888 | 60,193 | 51,547 |
| Loan receivables | 1,250 | 350 | 1,000 |
| Other current receivables | 5,583 | 4,222 | 7,038 |
| Assets for current tax | 2,156 | 1,601 | 1,874 |
| Cash and cash equivalents | 56,545 | 42,778 | 55,570 |
| Total current assets | 156,161 | 141,465 | 149,585 |
| Total assets | 300,069 | 274,910 | 291,750 |
| Equity and liabilities | |||
| Share capital | 11,860 | 11,860 | 11,860 |
| Share premium account | 24,681 | 24,681 | 24,681 |
| Reserve for invested unrestricted equity | 69,732 | 69,652 | 69,652 |
| Treasury shares | -44 | -44 | -44 |
| Fair value and other reserves | 205 | 107 | -118 |
| Exchange differences | 6,440 | 6,011 | 5,097 |
| Other equity | 334 | -9,824 | -3,076 |
| Total equity attributable to owners of the parent | 113,209 | 102,444 | 108,052 |
| Hybrid bond | 17,503 | 16,884 | 17,664 |
| Total equity | 130,712 | 119,328 | 125,716 |
| Liabilities | |||
| Non-current liabilities | |||
| Deferred tax liabilities | 10,811 | 9,886 | 10,890 |
| Liabilities from defined benefit plans | 1,070 | 1,151 | 1,105 |
| Other non-current liabilities | 329 | 459 | 651 |
| Debentures | 75,000 | 75,000 | 75,000 |
| Other non-current interest-bearing liabilities | 16,250 | 6,667 | 18,498 |
| Total non-current liabilities | 103,460 | 93,163 | 106,144 |
| Current liabilities | |||
| Current interest-bearing liabilities | 5,632 | 3,333 | 3,363 |
| Liabilities for current tax | 2,625 | 1,519 | 47 |
| Trade payables and other current liabilities | 57,639 | 57,567 | 56,479 |
| Total current liabilities | 65,897 | 62,420 | 59,889 |
| Total liabilities | 169,357 | 155,583 | 166,034 |
| Total equity and liabilities | 300,069 | 274,910 | 291,750 |
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
| EUR thousands | 4-6/2016 | 4-6/2015 | 1-6/2016 | 1-6/2015 | 1-12/2015 |
| Net sales | 108,832 | 112,944 | 212,701 | 224,878 | 444,042 |
| Cost of goods sold | -93,830 | -96,630 | -185,907 | -194,177 | -386,042 |
| Gross profit | 15,002 | 16,314 | 26,794 | 30,701 | 58,000 |
| Other operating income | 470 | 902 | 1,099 | 1,852 | 2,637 |
| Sales and marketing expenses | -1,818 | -1,755 | -3,576 | -3,658 | -7,760 |
| Research and development | -994 | -736 | -1,831 | -1,587 | -3,527 |
| Administration expenses | -3,931 | -4,179 | -8,270 | -8,860 | -16,709 |
| Other operating expenses | -67 | -84 | -12 | -695 | -862 |
| Operating profit | 8,661 | 10,462 | 14,204 | 17,754 | 31,778 |
| Net financial expenses | -967 | -1,076 | -1,211 | -2,697 | -5,302 |
| Profit before income taxes | 7,694 | 9,386 | 12,993 | 15,056 | 26,476 |
| Income taxes | -2,475 | -3,142 | -4,333 | -5,330 | -9,456 |
| Profit for the period | 5,219 | 6,244 | 8,660 | 9,726 | 17,020 |
| Earnings per share, EUR | |||||
| Basic | 0.10 | 0.12 | 0.16 | 0.18 | 0.32 |
| Diluted | 0.09 | 0.11 | 0.15 | 0.17 | 0.29 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| EUR thousands |
4-6/ 2016 |
4-6/ 2015 |
1-6/ 2016 |
1-6/ 2015 |
1-12/ 2015 |
| Profit for the period | 5,219 | 6,244 | 8,660 | 9,726 | 17,020 |
| Other comprehensive income: | |||||
| Other comprehensive income that will be subsequently reclassified to profit or loss | |||||
| Exchange differences | 5,496 | -2,367 | 1,563 | 2,935 | 2,356 |
| Fair value changes of cash flow hedges and available-for-sale assets | -221 | -422 | 397 | -549 | -970 |
| Reclassified to profit or loss | 86 | 539 | 69 | 564 | 669 |
| Reclassified to property, plant and equipment | -133 | − | -133 | − | 91 |
| Income taxes related to other comprehensive income | -743 | 136 | -229 | -295 | -632 |
| Total | 4,484 | -2,114 | 1,666 | 2,655 | 1,514 |
| Other comprehensive income that will not be subsequently reclassified to profit or loss | |||||
| Remeasurements of defined benefit plans | − | − | − | − | -26 |
| Income taxes related to other comprehensive income | − | − | − | − | 8 |
| Total | − | − | − | − | -18 |
| Total comprehensive income for the period | 9,705 | 4,132 | 10,327 | 12,382 | 18,516 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| EUR thousands | Share capital | Share premium account | Reserve for invested unrestricted equity | Treasury shares | Exchange differences |
| Equity 1 January 2016 | 11,860 | 24,681 | 69,652 | -44 | 5,097 |
| Profit / loss for the period | − | − | − | − | − |
| Other comprehensive income | − | − | − | − | 1,343 |
| Total comprehensive income | − | − | − | − | 1,343 |
| Share-based payments | − | − | − | − | − |
| Dividend distribution | − | − | − | − | − |
| Conveyance of treasury shares | − | − | 80 | − | − |
| Hybrid bond | − | − | − | − | − |
| Equity 30 June 2016 | 11,860 | 24,681 | 69,732 | -44 | 6,440 |
| EUR thousands | Fair value and other reserves | Other equity | Total | Hybrid bond | Total equity |
| Equity 1 January 2016 | -118 | -3,076 | 108,052 | 17,664 | 125,716 |
| Profit / loss for the period | − | 8,660 | 8,660 | − | 8,660 |
| Other comprehensive income | 323 | − | 1,666 | − | 1,666 |
| Total comprehensive income | 323 | 8,660 | 10,327 | − | 10,327 |
| Share-based payments | − | 151 | 151 | − | 151 |
| Dividend distribution | − | -5,030 | -5,030 | − | -5,030 |
| Conveyance of treasury shares | − | − | 80 | − | 80 |
| Hybrid bond | − | -370 | -370 | -162 | -532 |
| Equity 30 June 2016 | 205 | 334 | 113,209 | 17,503 | 130,712 |
| EUR thousands | Share capital | Share premium account | Reserve for invested unrestricted equity | Treasury shares | Exchange differences |
| Equity 1 January 2015 | 11,860 | 24,681 | 97,192 | -44 | 3,419 |
| Profit / loss for the period | − | − | − | − | − |
| Other comprehensive income | − | − | − | − | 2,644 |
| Total comprehensive income | − | − | − | − | 2,644 |
| Share-based payments | − | − | − | − | − |
| Share issue | − | − | 340 | − | − |
| Distribution of funds | − | − | -2,504 | − | − |
| Conveyance of treasury shares | − | − | 80 | − | − |
| Reclassifications | − | − | -27,448 | − | -51 |
| Conversion of hybrid bond | − | − | 1,992 | − | − |
| Hybrid bond | − | − | − | − | − |
| Equity 30 June 2015 | 11,860 | 24,681 | 69,652 | -44 | 6,011 |
| EUR thousands | Fair value and other reserves | Other equity | Total | Hybrid bond | Total equity |
| Equity 1 January 2015 | 96 | -46,890 | 90,314 | 18,424 | 108,737 |
| Profit / loss for the period | − | 9,726 | 9,726 | − | 9,726 |
| Other comprehensive income | 12 | − | 2,655 | − | 2,655 |
| Total comprehensive income | 12 | 9,726 | 12,382 | − | 12,382 |
| Share-based payments | − | 221 | 221 | − | 221 |
| Share issue | − | − | 340 | − | 340 |
| Distribution of funds | − | − | -2,504 | − | -2,504 |
| Conveyance of treasury shares | − | − | 80 | − | 80 |
| Reclassifications | − | 27,499 | − | − | − |
| Conversion of hybrid bond | − | − | 1,992 | -1,992 | − |
| Hybrid bond | − | -380 | -380 | 452 | 72 |
| Equity 30 June 2015 | 107 | -9,824 | 102,444 | 16,884 | 119,328 |
| EUR thousands | Share capital | Share premium account | Reserve for invested unrestricted equity | Treasury shares | Exchange differences |
| Equity 1 January 2015 | 11,860 | 24,681 | 97,192 | -44 | 3,419 |
| Profit / loss for the period | − | − | − | − | − |
| Other comprehensive income | − | − | − | − | 1,730 |
| Total comprehensive income | − | − | − | − | 1,730 |
| Share-based payments | − | − | − | − | − |
| Share issue | − | − | 340 | − | − |
| Distribution of funds | − | − | -2,504 | − | − |
| Reversal of undistributed dividends | − | − | − | − | − |
| Conveyance of treasury shares | − | − | 80 | − | − |
| Reclassifications | − | − | -27,448 | − | -51 |
| Conversion of hybrid bond | − | − | 1,992 | − | − |
| Hybrid bond | − | − | − | − | − |
| Equity 31 December 2015 | 11,860 | 24,681 | 69,652 | -44 | 5,097 |
| EUR thousands | Fair value and other reserves | Other equity | Total | Hybrid bond | Total equity |
| Equity 1 January 2015 | 96 | -46,890 | 90,313 | 18,424 | 108,737 |
| Profit / loss for the period | − | 17,020 | 17,020 | − | 17,020 |
| Other comprehensive income | -216 | -18 | 1,496 | − | 1,496 |
| Total comprehensive income | -216 | 17,002 | 18,516 | − | 18,516 |
| Share-based payments | − | 316 | 316 | − | 316 |
| Share issue | − | − | 340 | − | 340 |
| Distribution of funds | − | − | -2,504 | − | -2,504 |
| Reversal of undistributed dividends | − | 2 | 2 | − | 2 |
| Conveyance of treasury shares | − | − | 80 | − | 80 |
| Reclassifications | − | 27,499 | − | − | − |
| Conversion of hybrid bond | − | − | 1,992 | -1,992 | − |
| Hybrid bond | − | -1,004 | -1,004 | 1,232 | 228 |
| Equity 31 December 2015 | -118 | -3,076 | 108,052 | 17,664 | 125,716 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| EUR thousands | 1-6/2016 | 1-6/2015 | 1-12/2015 |
| Cash flow from operations | |||
| Profit / loss for the period | 8,660 | 9,726 | 17,020 |
| Total adjustments to profit / loss for the period | 14,455 | 16,378 | 32,870 |
| Cash flow before changes in net working capital | 23,115 | 26,105 | 49,890 |
| Change in net working capital | -3,238 | -9,263 | -7,921 |
| Financial items | -1,932 | -4,966 | -6,425 |
| Income taxes | -1,264 | -3,468 | -8,269 |
| Cash flow from operations | 16,682 | 8,407 | 27,274 |
| Cash flow from investments | |||
| Investments in property, plant and equipment and intangible assets | -10,662 | -4,009 | -22,369 |
| Cash flow from disposed businesses | 313 | − | 167 |
| Adjustments of purchase consideration | 161 | − | − |
| Sales proceeds from property, plant and equipment and intangible assets | − | 10 | 9.7 |
| Cash flow from investments | -10,188 | -4,000 | -22,192 |
| Cash flow from financing | |||
| Drawdown of other non-current interest-bearing liabilities | − | − | 15,000 |
| Repayment of other non-current interest-bearing liabilities | − | − | -3,333 |
| Changes in current interest-bearing liabilities | -26 | -14 | -14 |
| Changes in loan receivables | 450 | 417 | 600 |
| Share issue | − | 340 | 340 |
| Paid interest on hybrid bond | -624 | − | − |
| Dividend distribution / distribution of funds | -5,030 | -2,504 | -2,504 |
| Cash flow from financing | -5,230 | -1,761 | 10,089 |
| Change in cash and cash equivalents | 1,263 | 2,647 | 15,171 |
| Cash and cash equivalents at the beginning of the period | 55,570 | 38,430 | 38,430 |
| Effect of changes in exchange rates | -287 | 1,701 | 1,968 |
| Change in cash and cash equivalents | 1,263 | 2,647 | 15,171 |
| Cash and cash equivalents at the end of the period | 56,545 | 42,778 | 55,570 |
KEY RATIOS
|
4-6/ 2016 |
4-6/ 2015 |
1-6/ 2016 |
1-6/ 2015 |
1-12/ 2015 |
|
| Change in net sales, % * | -3.6 | 18.5 | -5.4 | 16.1 | 10.5 |
| Gross profit, as percentage of net sales, % | 13.8 | 14.4 | 12.6 | 13.7 | 13.1 |
| Comparable gross profit, as percentage of net sales, % | 13.8 | 14.0 | 12.6 | 13.4 | 12.9 |
| Operating profit, as percentage of net sales, % | 8.0 | 9.3 | 6.7 | 7.9 | 7.2 |
| Comparable operating profit, as percentage of net sales, % | 8.0 | 8.8 | 6.7 | 7.7 | 7.0 |
| Net financial items, as percentage of net sales, % | -0.9 | -1.0 | -0.6 | -1.2 | -1.2 |
| Profit before income taxes, as percentage of net sales, % | 7.1 | 8.3 | 6.1 | 6.7 | 6.0 |
| Profit for the period, as percentage of net sales, % | 4.8 | 5.5 | 4.1 | 4.3 | 3.8 |
| Gross capital expenditure, EUR thousands | 8,061 | 2,337 | 11,588 | 3,796 | 23,660 |
| Depreciation, amortization, impairment losses and reversal of impairment losses, EUR thousands | 4,544 | 3,943 | 9,146 | 8,329 | 17,684 |
| Return on equity, % | − | − | 12.9 | 12.5 | 14.4 |
| Return on invested capital, rolling 12 months, % | − | − | 13.5 | 16.2 | 15.9 |
| Return on invested capital, rolling 12 months, %, continuing operations | − | − | 13.5 | 17.1 | 15.9 |
| Equity ratio, % | − | − | 43.6 | 43.4 | 43.2 |
| Gearing, % | − | − | 24.5 | 28.2 | 25.9 |
| Earnings per share, EUR, basic ** | 0.10 | 0.12 | 0.16 | 0.18 | 0.32 |
| Earnings per share, EUR, diluted *' | 0.09 | 0.11 | 0.15 | 0.17 | 0.29 |
| Cash flow from operations per share, EUR ** | 0.15 | 0.08 | 0.33 | 0.17 | 0.54 |
| Equity per share, EUR ** | − | − | 2.60 | 2.37 | 2.50 |
| Number of shares, end of period, excluding treasury shares ** | − | − | 50,323,145 | 50,302,346 | 50,302,346 |
| Share price, end of period, EUR ** | − | − | 4.02 | 4.85 | 6.20 |
| Share price, period low, EUR ** | − | − | 3.61 | 3.75 | 3.75 |
| Share price, period high, EUR ** | − | − | 6.20 | 5.95 | 6.65 |
| Volume weighted average price during the period, EUR ** | − | − | 4.38 | 4.70 | 5.05 |
| Market capitalization, EUR million | − | − | 202.3 | 244.0 | 311.9 |
| Number of traded shares during the period ** | − | − | 8,754,693 | 15,354,529 | 19,502,550 |
| Number of traded shares during the period, % of average number of shares | − | − | 17.4 | 30.7 | 38.9 |
| * Compared with the corresponding period in the previous year. | |||||
| ** Comparative information adjusted with the effects of the reverse share split. | |||||
| 30.6.2016 | 30.6.2015 | 31.12.2015 | |||
| Interest-bearing net debt, EUR thousands | |||||
| Non-current interest-bearing liabilities | 91,250 | 81,667 | 93,498 | ||
| Current interest-bearing liabilities | 5,632 | 3,333 | 3,363 | ||
| Interest-bearing receivables and cash and cash equivalents | -64,889 | -51,330 | -64,363 | ||
| Interest-bearing net debt | 31,994 | 33,670 | 32,499 | ||
DEFINITION OF KEY RATIOS
Definitions of key ratios are presented in the consolidated financial statements for 2015.
In accordance with the recommendation by European Securities and Markets Authority, Suominen no longer presents operating profit excluding non-recurring items as an alternative performance measure. In order to improve the comparability of result between reporting periods, Suominen presents comparable operating profit as an alternative performance measure. Operating profit is adjusted with material items that are considered to affect comparability between reporting periods. These items include, among others, impairment losses or reversals of impairment losses, gains or losses from the sales of property, plant and equipment or intangible assets or other assets and restructuring costs.
COMPARABLE OPERATING PROFIT
| EUR thousands |
4-6/ 2016 |
4-6/ 2015 |
1-6/ 2016 |
1-6/ 2015 |
1-12/ 2015 |
| Operating profit | 8,661 | 10,462 | 14,204 | 17,754 | 31,778 |
| Reversal of impairment loss | − | -530 | − | -530 | -530 |
| Comparable operating profit | 8,661 | 9,932 | 14,204 | 17,224 | 31,248 |
Reversal of impairment loss, EUR +0.5 million, is the reversal of a previously made impairment loss related to the re-opened production line in Nakkila plant in Finland. The reversal of the impairment loss is recognized in cost of goods sold.
NET SALES BY GEOGRAPHICAL MARKET AREA
| EUR thousands | 1-6/2016 | 1-6/2015 | 1-12/2015 |
| Finland | 1,285 | 1,417 | 2,724 |
| Rest of Europe | 82,396 | 81,190 | 159,854 |
| North and South America | 123,914 | 138,106 | 271,634 |
| Rest of the world | 5,105 | 4,165 | 9,830 |
| Total | 212,701 | 224,878 | 444,042 |
QUARTERLY DEVELOPMENT
| 2016 | 2015 | |||||
| EUR thousands | 4-6 | 1-3 | 10-12 | 7-9 | 4-6 | 1-3 |
| Net sales | 108,832 | 103,869 | 104,244 | 114,919 | 112,944 | 111,934 |
| Comparable operating profit | 8,661 | 5,543 | 4,262 | 9,763 | 9,932 | 7,292 |
| as % of net sales | 8.0 | 5.3 | 4.1 | 8.5 | 8.8 | 6.5 |
| Items affecting comparability | − | − | − | − | 530 | − |
| Operating profit | 8,661 | 5,543 | 4,262 | 9,763 | 10,462 | 7,292 |
| as % of net sales | 8.0 | 5.3 | 4.1 | 8.5 | 9.3 | 6.5 |
| Net financial items | -967 | -244 | -1,358 | -1,247 | -1,076 | -1,621 |
| Profit before income taxes | 7,694 | 5,299 | 2,903 | 8,517 | 9,386 | 5,670 |
| as % of net sales | 7.1 | 5.1 | 2.8 | 7.4 | 8.3 | 5.1 |
RELATED PARTY INFORMATION
The related parties of Suominen include the members of the Board of Directors, President & CEO and the members of the Corporate Executive Team as well as their family members and their controlled companies. In addition, shareholders who have a significant influence in Suominen through share ownership are included in related parties. Suominen has no associated companies.
In its transactions with related parties Suominen follows the same commercial terms as in transactions with third parties.
The Annual General Meeting held on 16 March 2016 resolved that 40% of the annual remuneration for the Board of Directors is paid in Suominen Corporation’s shares. The number of shares transferred to the members of the Board of Directors as their remuneration payable in shares for 2016 was 20,799 shares. The shares were transferred on 3 June 2016 and the value of the transferred shares totaled EUR 79,793, or approximately EUR 3.83638 per share.
Other salaries paid to the related parties during the first half of 2016 amounted to EUR 1,222 thousand, obligatory pension payments EUR 160 thousand, voluntary pension payment EUR 46 thousands, and accruals based on share-based incentive plans EUR 148 thousand.
CHANGES IN PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
| 30.6.2016 | 30.6.2015 | 31.12.2015 | ||||
| EUR thousands | Property, plant and equipment | Intangible assets | Property, plant and equipment | Intangible assets | Property, plant and equipment | Intangible assets |
| Carrying amount at the beginning of the period | 97,931 | 13,275 | 88,721 | 12,510 | 88,721 | 12,510 |
| Capital expenditure | 10,287 | 1,301 | 2,736 | 1,059 | 20,733 | 2,927 |
| Disposals | − | − | − | -10 | − | -10 |
| Depreciation, amortization and impairment losses | -7,995 | -1,147 | -7,818 | -1,041 | -15,957 | -2,257 |
| Reversal of impairment losses | − | − | 530 | − | 530 | − |
| Exchange differences and other changes | 275 | -43 | 4,128 | 82 | 3,904 | 104 |
| Carrying amount at the end of the period | 100,499 | 13,385 | 88,297 | 12,601 | 97,931 | 13,275 |
Goodwill is not included in intangible assets.
CHANGES IN INTEREST-BEARING LIABILITIES
| EUR thousands | 1-6/ 2016 |
1-6/ 2015 |
1-12/ 2015 |
| Total interest-bearing liabilities at the beginning of the period | 96,862 | 85,014 | 85,014 |
| Current liabilities at the beginning of the period | 3,363 | 3,347 | 3,347 |
| Repayment of current liabilities | -26 | -14 | -3,347 |
| Drawdown of current liabilities | 102 | − | 3,363 |
| Reclassification from non-current liabilities | 2,258 | − | − |
| Exchange rate difference | -65 | − | − |
| Current liabilities at the end of the period | 5,632 | 3,333 | 3,363 |
| Non-current liabilities at the beginning of the period | 18,498 | 6,667 | 6,667 |
| Repayment of non-current liabilities | − | − | -6,667 |
| Drawdown of non-current liabilities | 368 | − | 18,498 |
| Reclassification to current liabilities | -2,258 | − | − |
| Exchange rate difference | -358 | − | − |
| Non-current liabilities at the end of the period | 16,250 | 6,667 | 18,498 |
| Debentures at the beginning of the period | 75,000 | 75,000 | 75,000 |
| Changes in debentures | − | − | − |
| Debentures at the end of the period | 75,000 | 75,000 | 75,000 |
| Total interest-bearing liabilities at the end of the period | 96,882 | 85,000 | 96,862 |
In accordance with IAS 32, the hybrid bond is included in equity.
CONTINGENT LIABILITIES
| EUR thousands | 30.6.2016 | 30.6.2015 | 31.12.2015 |
| Other commitments | |||
| Operating leases | 16,186 | 22,354 | 17,116 |
| Contractual commitments to acquire property, plant and equipment | 9,446 | − | 16,083 |
| Guarantees | |||
| On own behalf | 20,776 | 17,551 | 18,487 |
| On behalf of others | 960 | 4,134 | 4,134 |
NOMINAL AND FAIR VALUES OF DERIVATIVE INSTRUMENTS
|
|
30.6.2016 | 30.6.2015 | 31.12.2015 | |||
| EUR thousands | Nominal value |
Fair value |
Nominal value |
Fair value |
Nominal value |
Fair value |
| Currency forward contracts | ||||||
| Hedge accounting applied | 11,978 | -36 | 34,991 | -93 | 16,114 | -267 |
| Hedge accounting not applied | 2,225 | -23 | 4,577 | 110 | 3,196 | -30 |
| Electricity forward contracts | ||||||
| Hedge accounting applied | 913 | -150 | 1,599 | -206 | 1,229 | -242 |
CLASSIFICATION OF FINANCIAL ASSETS
a. Financial assets at fair value through profit or loss
b. Loans and receivables
c. Available-for-sale assets
d. Derivatives, hedge accounting applied
e. Carrying amount
f. Fair value
| EUR thousands | a. | b. | c. | d. | e. | f. |
| Available-for-sale assets | − | − | 777 | − | 777 | 777 |
| Other non-current receivables | 501 | 1,818 | − | − | 2,319 | 2,319 |
| Loan receivables | − | 8,343 | − | − | 8,343 | 8,343 |
| Trade receivables | − | 57,888 | − | − | 57,888 | 57,888 |
| Interest and other financial receivables | − | 1,385 | − | − | 1,385 | 1,385 |
| Cash and cash equivalents | − | 56,545 | − | − | 56,545 | 56,545 |
| Total 30.6.2016 | 501 | 125,981 | 777 | − | 127,258 | 127,258 |
| EUR thousands | a. | b. | c. | d. | e. | f. |
| Available-for-sale assets | − | − | 777 | − | 777 | 777 |
| Other non-current receivables | 813 | 1,512 | − | − | 2,326 | 2,326 |
| Loan receivables | − | 8,793 | − | − | 8,793 | 8,793 |
| Trade receivables | − | 51,547 | − | − | 51,547 | 51,547 |
| Interest and other financial receivables | − | 1,297 | − | − | 1,297 | 1,297 |
| Cash and cash equivalents | − | 55,570 | − | − | 55,570 | 55,570 |
| Total 31.12.2015 | 813 | 118,719 | 777 | − | 120,309 | 120,309 |
Principles in estimating fair value for financial assets for 2016 are the same as those used for preparing the consolidated financial statements for 2015.
FINANCIAL LIABILITIES
| 30.6.2016 | 31.12.2015 | |||
| EUR thousands | Carrying amount | Fair value | Carrying amount | Fair value |
| Non-current financial liabilities | ||||
| Loans from financial institutions | 15,914 | 15,914 | 18,498 | 18,498 |
| Debentures | 75,000 | 78,375 | 75,000 | 77,175 |
| Finance lease liabilities | 336 | 336 | − | − |
| Other non-current liabilities | − | − | 368 | 368 |
| Total non-current financial liabilities | 91,250 | 94,625 | 93,866 | 96,041 |
| Current financial liabilities | ||||
| Current part of non-current loans from financial institutions | 5,524 | 5,524 | 3,363 | 3,363 |
| Finance lease liabilities | 108 | 108 | − | − |
| Derivatives, no hedge accounting applied | 23 | 23 | 30 | 30 |
| Derivatives, hedge accounting applied | 186 | 186 | 509 | 509 |
| Interest accruals | 909 | 909 | 914 | 914 |
| Other current liabilities | 225 | 225 | 262 | 262 |
| Trade payables | 46,428 | 46,428 | 44,682 | 44,682 |
| Total current financial liabilities | 53,403 | 53,403 | 49,761 | 49,761 |
| Total | 144,654 | 148,029 | 143,627 | 145,802 |
Principles in estimating fair value for financial liabilities for 2016 are the same as those used for preparing the consolidated financial statements for 2015.
FAIR VALUE MEASUREMENT HIERARCHY
| EUR thousands | Level 1 | Level 2 | Level 3 | |
| Financial assets and liabilities at fair value | ||||
| Other non-current receivables | − | − | 501 | |
| Available-for-sale assets | − | − | 777 | |
| Liabilities at fair value through profit or loss | − | − | -225 | |
| Total | − | − | 1,052 | |
| Derivatives at fair value | ||||
| Currency forward contracts, liabilities | − | -59 | − | |
| Electricity forward contracts, liabilities | − | -150 | − | |
| Total | − | -209 | − | |
Principles in estimating fair value for financial assets and their hierarchies for 2016 are the same as those used for preparing the consolidated financial statements for 2015. There were no transfers in the fair value measurement hierarchy levels during the reporting period.
SUOMINEN CORPORATION
Board of Directors
For additional information, please contact:
Nina Kopola, President & CEO, tel. +358 (0)10 214 300
Tapio Engström, Senior Vice President and CFO, tel. +358 (0)10 214 300
Distribution:
Nasdaq Helsinki
Key media
www.suominen.fi
Suominen in brief
Suominen manufactures nonwovens as roll goods for wipes as well as for medical and hygiene products. The end products made of Suominen’s nonwovens – wet wipes, feminine care products and swabs, for instance – bring added value to the daily life of consumers worldwide. Suominen is the global market leader in nonwovens for wipes and employs over 600 people in Europe and in the Americas. Suominen’s net sales in 2015 amounted to EUR 444.0 million and comparable operating profit to EUR 31.2 million. The Suominen share (SUY1V) is listed in Nasdaq Helsinki Stock Exchange (Mid Cap). Read more at www.suominen.fi.
