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Sales down 3.7% in Q4
January 31, 2017
By: Tara Olivo
Associate Editor at Nonwovens Industry
In the fourth quarter of 2016, Suominen’s net sales decreased by 3.7% from the comparison period to €100.4 million ($107.4 million). Tightened competition decreased the demand and had an impact on pricing in selected product groups. Net sales were affected by both lower sales prices and volumes compared to last year, approximately in equal proportions. The revenue recognition of a larger than usual number of customer deliveries was postponed into 2017. The strengthening of the USD compared to EUR, Suominen’s reporting currency, increased the net sales by €0.9 million ($962,766) in the fourth quarter. Suominen has two business areas, Convenience and Care. Net sales of the Convenience business area were €92.5 million ($99 million) and net sales of the Care business area were €7.8 million ($8.3 million) in the fourth quarter. Convenience business area supplies nonwovens as roll goods for household, personal care, workplace and baby care wiping products. Care business area manufactures nonwovens for hygiene products and medical applications. In the 2016 financial year, Suominen’s net sales fell by 6.1% from the comparison period to €416.9 million ($446 million) due to principally the same factors affecting net sales in the fourth quarter. The strengthening of the USD compared to EUR, Suominen’s reporting currency, increased the net sales of 2016 by approximately €0.7 million ($748,818). In 2016, net sales of the Convenience business area were €385.5 million ($412.4 million) and net sales of the Care business area were €31.3 million ($33.5 million). The main application areas for nonwoven materials supplied by Suominen were baby wipes (accounting for 38% of the sales), personal care wipes (25%), household wipes (18%), wipes for workplace use (10%), and hygiene and medical products (8%). The share of baby wipes in the product portfolio declined by two percentage points from 2015 and the share of personal care wipes grew by three percentage points. The development was in line with Suominen’s strategy, which aims at increasing the share of products with higher added value in the portfolio.
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