In SCA’s interim report for the first quarter of 2017 to be published on April 27, 2017, the hygiene business will be recognized as profit for the period from discontinued operations held for distribution to owners. SCA will also publish an interim report for the first quarter of 2017 for its hygiene business SCA Hygiene AB. After the approved split SCA Hygiene AB will change its name to Essity. In addition, financial information will be published for the combined forest products and hygiene business.
Segment reporting will be changed from the first quarter of 2017 for the business areas for SCA, the future forest products company, and for SCA Hygiene AB, the future hygiene and health company Essity.
The following four business areas will be reported for the future forest products company, SCA:
The Forest business area manages 2.6 million hectares of forest land, of which 2 million is productive, and supplies timber to SCA’s Swedish mills. Roughly the same amount of timber harvested from SCA’s own forests is purchased from other forest owners. By-products are used in energy production.
The Wood business area comprises five sawmills in Sweden, wood processing units with planing mills in Sweden, France and the UK, as well as distribution and wholesale businesses. By-products are used in energy production.
The Pulp business area produces kraft pulp and chemical thermomechanical pulp (CTMP). Pulp is manufactured in Östrand, Sweden.
The Paper business area comprises publication papers that are manufactured in Ortviken, Sweden, and used for magazines, catalogues and advertising prints, and packaging paper (kraftliner) manufactured in Obbola and Munksund in Sweden.
The following three business areas will be reported for SCA Hygiene AB, the future hygiene and health company Essity:
The Personal Care business area includes Incontinence Products, Feminine Care, Baby Care and Medical Solutions.
The Consumer Tissue business area’s product offering includes toilet paper, household towels, handkerchiefs, facial tissues, wet wipes and napkins.
The Professional Hygiene business area targets institutions and companies, and includes complete hygiene solutions, including toilet paper, paper towels, napkins, hand soap, hand lotion, hand sanitizers, dispensers, cleaning and wiping products, sensor technology and service and maintenance.
Based on the above, income statements and balance sheets, operating cash flow statements, cash flow statements and business area reporting for the full-years 2014, 2015 and 2016 have been restated. Income statements and business area reporting have also been restated for the fourth quarter of 2015 and all quarters in 2016.
In the restatement of SCA’s and the combined forest product and hygiene business’s historical income statements, net sales have been adjusted as a result of changed reporting of swaps of wood raw materials in SCA’s Forest business area.
The future forest products company SCA will present a cost based income statement. Income statements and business area reporting for 2014, 2015, 2016, the fourth quarter of 2015 and all quarters in 2016 have been restated based on this classification.
SCA Hygiene AB, the future hygiene and health company Essity, will present a function based income statement including EBITA (operating profit before amortization of acquisition related intangible assets). Income statements and business area reporting for 2014, 2015, 2016, the fourth quarter of 2015 and all quarters in 2016 have been restated based on this classification.
Restated financial information is presented below.