Helsinki, Finland, 2017-04-26 11:55 CEST (GLOBE NEWSWIRE) --
Suominen Corporation Press release 26 April 2017 at 12.55 noon
Suominen Corporation’s strategy for 2017-2021 aims at significant net sales growth and elevating profitability to a new level
Suominen Corporation has defined its strategy for years 2017–2021. Profitable growth is the centerpiece of the strategy, and the company’s continuous efforts to increase the share of products with high added value in its portfolio will remain the key driver. The path towards profitable growth is supported by robust competitive edge, such as extended technological expertise, that Suominen has strengthened during the past years. Moreover, during the strategy period, Suominen will examine its opportunities to expand its business to new market regions, primarily to Asia.
The company’s new strategy is based on three cornerstones that describe our ambition.
1. Best in business
We are the best in our industry at turning end-user needs into a commercial success that benefits both our customers and ourselves. We win by understanding the needs of our customer’s customer. Our supply chain is demand-driven and we have the most appealing product brands in the industry. We pursue new growth opportunities.
2. Creating nonwovens that others cannot
We develop and produce unique nonwovens that other companies are not able to create. Our competitive advantages include, e.g., a powerful innovation machine and customizable nonwovens with smart functionalities. We offer the most sustainable nonwovens in the market. Our products are proven to be better than our competitors’ products.
3. Community of changemakers
We are a global community of highly capable people who are passionate about creating change. Our leadership is based on trust and we actively and openly share information. We work to change things for the better.
”From now on we can draw on the determined work done in past years. Our investments in product development, marketing and customer interface as well as the largest investments we have ever made in manufacturing technologies on three continents have created sustainable competitive edge for Suominen and, consequently, a good foundation for our future success. Moreover, the market outlook remains favorable: according to recent independent forecasts, demand for nonwovens will continue to grow, especially in the applications Suominen is focusing on” states Nina Kopola, President & CEO of Suominen.
Expansion to Asia on Suominen’s radar
Suominen has also renewed its vision. According to the new vision, Suominen will change the way people think about nonwovens. “When comparing nonwoven rolls, they may seem like the same everyday products. However, every square meter of nonwoven delivered from our plants to our customer is packed with carefully selected features that are tailored to match the needs of the end user. We want to change the way people think about the role of nonwovens in society and we also seek to continuously surprise our customers by introducing entirely new features in nonwovens”, Kopola continues.
During the strategy period of 2017-2021, Suominen also aims to examine its opportunities to expand its business operations to new market regions, primarily to Asia. Asia-Pacific region is the largest nonwovens market in the world with a promising growth outlook. Currently, Suominen operates in the Asian markets through sales agents.
Updated financial targets and dividend policy
In connection with the new strategy, Suominen’s Board of Directors also updated the financial targets for the period 2017-2021. The targets are set to measure profitability, growth and financial position. During the strategic period of 2017-2021, Suominen aims to
- reach an average return on investment (ROI) of 15% during the period
- reach an average annual net sales growth rate of 6% during the period
- operate with a gearing ratio principally in the range of 40-80%
Suominen’s progress in the financial targets is reviewed on an annual basis.
If Suominen succeeds in executing its strategy, the company’s net sales will exceed EUR 600 million by 2021. Moreover, Suominen’s operating profit margin will elevate to a new level, above 10%.
The Board of Directors has also updated the company’s dividend policy. According to the updated policy, Suominen aims to distribute at least 30% of its profit for the period in annual dividends. Previously, the policy was to distribute approximately 30% of its profit for the period in annual dividends. In assessing its proposal for the payment of dividends, the company’s Board of Directors will also consider Suominen’s future investment needs and the solidity of its financial position.
Capital Markets Day on 10 May 2017 in Helsinki
Suominen will hold a Capital Markets Day for analysts and institutional investors on 10 May 2017 in Helsinki. During the Capital Markets Day, Suominen’s management will present the strategy for 2017-2021 and its implications in greater detail. The company will not be disclosing any significant, new information at the event. To register for the Capital Markets Day, please contact eeva.oinonen@suominencorp.com by 2 May 2017.
For further information on the strategy, please contact: Nina Kopola, President & CEO, tel. +358 10 214 300
For further information on the Capital Markets Day, please contact Anu Heinonen, VP, Corporate Communications & IR, tel. +358 40 723 6279
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 some 650 people in Europe and in the Americas. Suominen’s net sales in 2016 amounted to EUR 416.9 million and comparable operating profit to EUR 25.6 million. The Suominen share (SUY1V) is listed in Nasdaq Helsinki Stock Exchange (Mid Cap). Read more at www.suominen.fi.