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Suominen: Lowering 2022 guidance, as cost escalation and high inventories in the US continue to weigh on result - Nordea

Suominen’s Q1 EBITDA was weak, as expected, due to the high inventory levels at some of Suominen’s key customers in the US, along with escalation in costs which will feed through to sales prices with a lag. Suominen updated its outlook and now expects its comparable EBITDA 2022 to decrease clearly (earlier: “will decrease”) from EUR 47m in 2021 (consensus EBITDA for 2022 is EUR 41m). Whilst consensus was already anticipating a meaningful decline in earnings, the new guidance is likely to push down estimates, we find.

Suominen’s Q1 EBITDA was weak, as expected, due to the high inventory levels at some of Suominen’s key customers in the US, along with escalation in costs which will feed through to sales prices with a lag. Suominen updated its outlook and now expects its comparable EBITDA 2022 to decrease clearly (earlier: “will decrease”) from EUR 47m in 2021 (consensus EBITDA for 2022 is EUR 41m). Whilst consensus was already anticipating a meaningful decline in earnings, the new guidance is likely to push down estimates, we find.
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