HELSINKI – Suominen reports a record financial year for 2020, with the Covid-19 pandemic driving higher demand for wipes, even as sales prices fell as a result of lower raw material prices.
The company achieved 2020 net sales of €458.9 million, up 11.5% from €411 million in 2019. Operating profit meanwhile climbed to €39.5 million from €8.1 million due to higher production and sales volumes, favourable raw material prices, and improved production and raw material efficiency.
“During the year, we announced three capacity investments supporting our strategy, two in Italy and one in the USA, along with a cooperation agreement with the Ahlstrom-Munksjö plant in Ställdalen in Sweden,” said president and CEO Petri Helsky. “We also introduced several new sustainable products made of biodegradable, compostable and renewable plant-based fibres.”
In addition, Suominen received the Supplier Innovation Award 2020 from Rockline Industries and became the first nonwovens substrate manufacturer to receive Fine to Flush certification from Water UK for its Hydraspun Royal – a dispersible nonwoven material designed for moist toilet tissues.
“Looking at the year ahead, we see a two-fold development,” Helsky said. “The pandemic has increased consumption of nonwovens in all our markets and the demand is expected to continue on a high level. In the longer 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 and issues linked to logistics, as well as potential closures of plants due to virus infections or authority decisions remain relevant. We have already started to experience exceptional volatility in the cost and availability of raw materials and transportation.
“Our primary focus has been, and continues to be, to safeguard the health and safety of our employees while keeping our operations running with as little impact as possible. I would like to highlight the commitment of our personnel during the extraordinary year and thank them for their efforts in delivering this record performance.”
