Suominen Oyj

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Welcome to the Suominen Q4 and full year 2025 results call. My name is Anu Ilvanen. I work as the communications and marketing director at Suominen and I will be facilitating the call today. Joining me are our president and CEO Charles Olme and CFO Janne Filosaari. who will present our results and also grow through our newly published full potential program and operating models. Charles and Janne, the floor is yours.

Thank you. Good morning to all of you. So we will go through the results of the fourth quarter of the full year 2025 and then go through the financial review in more detail as Anu was saying. So if we start with a summary of our results, which are summarized in the title that says it all. Our results are unsatisfactory, both in the fourth quarter and the full year of 2025 in a challenging environment, but also linked to our internal performance. If I first focus on the fourth quarter of 2025, our net sales decreased by 20% versus 2024 same period. And the main aspects were linked to customers, particularly in the US, temporarily increasing their supply and imports from local countries. That was also resulting from supply issues in our factories, particularly in the US. The consequence of this lower volume, the EBITDA was 1.9 million euros for the quarter. The cash flow was 7 million euros. And that drives to a full year 2025 where the net sales altogether decreased by 11% versus 2024, 25, sorry, or versus 24. The comparable EBITDA decreased to a level of 12.6 million euro. The cash flow was 12.2 million euro. As you know, end of Q2, we had launched a cost saving program that was aiming at 10 million euro benefit over 24 months. And we may come back to this late. This cost saving program is proceeding and continues into 2026. really important to mention, and we mentioned it, of course, in our Q3 call, but still in this one, in terms of the impact on the full year results, we had two major incidents in our US plants during the third quarter and the fourth quarter that affected our ability to supply during those quarters. with an interruption of three months in one factory, in one line of one factory, and a flooding in another factory that meant losing a relatively significant inventory, which hampered our supply to customers. So with this disappointing result, the board of directors is proposing to the annual general meeting that no dividend shall be distributed for the financial year 2025. Based also on this situation, we have assessed precisely, deeply our situation and have decided to launch a three-year performance improvement program aiming at profitability increase to reach our full potential within the next three years. I'll come back to this, but first, we will go into more detail on the financial results with RCA4 Yanni.