STOCKHOLM, April 27, 2017 /PRNewswire/ --
JANUARY 1 – MARCH 31, 2017 (compared with the corresponding
period a year ago)
- Net sales totaled SEK
25,268m (24,248)
- Organic sales, excluding exchange rate effects,
acquisitions and divestments, increased 1,0%
- Operating profit before amortization of
acquisition-related intangible assets (EBITA) rose 1% to
SEK 2,596m (2,558)
- Adjusted operating profit before amortization of
acquisition-related intangible assets (EBITA) rose 6% to
SEK 2,917m (2,744)
- Adjusted operating profit increased 7% to SEK 2,896m (2,713)
- The adjusted EBITA margin was 11.5% (11.3)
- Adjusted profit before tax rose 9% to SEK 2,630m (2,410)
- Items affecting comparability totaled SEK -409m (-191), of which SEK -134m (-185) affected cash flow
- Profit for the period was SEK
1,656m (1,625)
- Earnings per share[1] amounted
to SEK 2.08 (2.15)
- The adjusted return on capital employed was 15.6%
(15.5)
- Cash flow from current operations was SEK 2,282m (1,043)
- The acquisition of BSN medical was closed on April 3, 2017
- SCA's Annual General Meeting approved the distribution
and listing of the hygiene business – the future hygiene and health
company Essity AB. The preparations for the distribution and the
listing of SCA Hygiene AB are under way, and the intention is that
the first day of separate trading in the two companies will be in
June
2017.
- The financial targets for the Group have been changed and
are now annual organic growth of above 3% and an adjusted return on
capital employed of above
15%
[1] Indicative earnings per share on the assumption that
the number of issued shares in SCA Hygiene AB as of March 31, 2017 corresponded to the number of
issued shares in SCA (702.3 millions) at the same date. The actual
number of shares issued in SCA Hygiene AB as of March 31, 2017 was 5,000.
(Table included in attached pdf)
CEO'S COMMENTS
At the AGM on April 5, 2017,
SCA's shareholders decided to split SCA into two listed companies:
SCA, an efficient and well-invested forest products company, and
Essity, a leading global hygiene and health company. The split aims
to increase value for shareholders in the long term through
increased focus, customer value and development opportunities and
by enabling each company to successfully realize its strategies. We
look forward to an exciting future for these two strong listed
companies.
On April 3, 2017, the Group
completed the acquisition of BSN medical, a leading medical
solutions company. The acquisition of BSN medical is an excellent
strategic fit for SCA and will contribute to the realization of our
vision – dedicated to improving well-being through leading hygiene
and health solutions. BSN medical has leading market positions in
several attractive medical product categories and represents a new
growth platform.
We further developed our customer and consumer offerings, and
launched five innovations during the quarter. In Latin America, we launched innovations in
Consumer Tissue under the Familia brand and in Feminine Care under
the Saba brand. In Russia, we
upgraded our Baby Care offering
under the Libero brand. For Incontinence Products, we launched two
innovations under the globally leading TENA brand. In France, during April
2017, we launched products in Baby
Care under our strong Lotus brand.
Our activities to continuously enhance efficiency and
reduce costs across the supply chain continued. As part of our
Tissue Roadmap, we approved investments during the quarter in
Mexico and the UK to strengthen
our product offerings. Furthermore, a tissue machine was closed and
a tissue plant was divested in the UK. These measures are aligned
with our strategy to streamline production and secure capacity for
future growth to increase value creation in the Consumer Tissue and
Professional Hygiene business areas.
We continued our efforts to improve or exit underperforming
market positions. Significantly improved profitability for
Incontinence Products in North
America and the discontinuation of Baby Care operations in Mexico and the hygiene business in
India had a positive impact on the
margin in Personal Care during the first quarter.
Net sales for the Group in the first quarter of 2017 rose 4.2%
compared with the corresponding period a year ago. Organic sales
increased 1.0%. Organic sales increased 5.2% in emerging markets,
which accounted for 36% of net sales, and decreased 0.9% in mature
markets.
Adjusted EBITA for the Group in the first quarter of 2017,
excluding currency translation effects, acquisitions and
divestments, rose 4% compared with the corresponding period a year
ago. This increase was primarily attributable to higher volumes, a
better price/mix, cost savings and other measures to improve
profitability. Selling costs were higher, and investments were made
in increased marketing activities. Higher energy and raw material
costs had a negative earnings effect. The Group's adjusted EBITA
margin increased 0.2 percentage points to 11.5%. Operating cash
flow rose 60%. The adjusted return on capital employed increased
0.1 percentage points to 15.6%.
For further information, please contact:
Fredrik Rystedt
CFO and Executive Vice President
+46-8-788-51-31
Johan Karlsson
Vice President Investor Relations
Group Function Communications
+46-8-788-51-30
Linda Nyberg
Vice President Media and Online
Group Function Communications
+46-8-788-51-58
Joséphine Edwall-Björklund
Senior Vice President
Group Function Communications
+46-8-788-52-34
NB:
SCA discloses the information provided herein pursuant to
the Securities Markets Act. This report has been prepared in both
Swedish and English versions. In case of variations in the content
between the two versions, the Swedish version shall govern. The
information was submitted for publication, through the agency of
the contact person set out below, at 8:00
CET on April 27, 2017. This
interim report has been reviewed by the company's
auditors.
Karl
Stoltz
Media Relations Manager
+46-8-788-51-55
This information was brought to you by Cision
http://news.cision.com
http://news.cision.com/sca/r/interim-report-q1-2017-sca-hygiene-ab--publ-,c2251883
The following files are available for download:
http://mb.cision.com/Main/600/2251883/665398.pdf
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SOURCE SCA