SCA is a global leader in personal care and has a portfolio of incontinence products, baby diapers and feminine care products. Within these product categories, SCA also offers such products as wet wipes, soap, baby oil, lotion and cotton pads. The products are sold under SCA’s global, regional and local brands as well as under retailers’ brands. Distribution channels for the products are the retail trade, pharmacies and care institutions.
Efficiency
At the end of the year, SCA had production at 30 plants in 25 countries. Products are distributed via the retail trade, pharmacies and care institutions. Production efficiency is being improved consistently through modernization of and investment in new and existing facilities, thereby enhancing the cost structure and operational reliability.
The cost-cutting and efficiency-enhancement program launched in 2012 and affecting both of SCA’s hygiene operations, meaning Personal Care and Tissue, will generate annual cost savings of EUR 300m with full effect from 2015. The measures will affect about 1,500 employees. The bulk of the savings relates to production and purchasing. In terms of production, SCA is working to standardize activities by implementing the most efficient processes at all of its production facilities. For purchasing, the main focus is on achieving economies of scale by more efficiently centralizing purchasing and consolidating suppliers.
Innovations
In 2010–2011, SCA launched TENA Solutions, supporting nursing homes in delivering the best care by supplying routines, analysis tools and training in combination with innovative product solutions. The advantages include improved well-being for care recipients, a better work environment and less waste and use of resources as well as a lower total cost.
2011 marked the launch in China of SCA’s TENA Belt, an incontinence product with a separate washable belt. The new product helps lower the environmental impact, reduces workloads for healthcare personnel and ensures improved skin comfort for the user. In 2012, a TENA Belt product adapted to the economy segment was launched.
TENA Lady, featuring wings that provide even greater assurance of a dry and fresh feeling, was launched during the year. An upgraded and more discreet TENA Pants product with improved comfort and fit while reducing transportation costs and carbon dioxide emissions was also introduced in the market during the year. An XXL version of TENA Slip was launched in the UK and Ireland.
In 2011, thin baby diapers were launched in the Nordic region and Russia under the Libero brand and in 2012 the market introduction continued in several other European markets.
In 2012, SCA launched an upgraded slim sanitary pad with improved absorption in Europe, the Middle East and South Africa. In Europe, the company also launched a pad offering a better fit and reduced material usage with maintained absorption capabilities.
Growth
In 2012, the Personal Care business area increased its sales in all product categories and global growth amounted to 12%, excluding exchange rate effects and divestments. Acquisitions increased sales by 5%. The sales increase in emerging markets, which accounted for 36% of the business area’s sales, amounted to 22%, excluding exchange rate effects.
SCA’s target for the business area is an annual rate of organic growth of 5–7%.
In 2012, SCA grew both organically and through acquisitions. A key emerging market for SCA is Asia, which is expected to account for 60% of future global market growth in the hygiene area. In 2012, SCA strengthened its position in Asia through the acquisition of Everbeauty, an Asian personal care company with its own sales organization in China and Taiwan, and export sales to the rest of Asia. The company produces and markets baby diapers and incontinence products with such strong brands as Dr P for incontinence products and Sealer for baby diapers. For incontinence care, the company holds the number two position in China and number one in Taiwan. Together, Dr P and TENA are clear market leaders in Asia (excluding Japan). For baby diapers, the company occupies the number five spot in both China and Taiwan. The acquisition provides SCA with access to a comprehensive distribution network and a strong sales organization as well as its own production at two facilities in China and Taiwan. The acquisition creates a solid platform for high growth in Asia and China in particular.
Other important emerging markets where SCA commands a strong position are Latin America and Eastern Europe. Brazil, which is the most populous country in South America, is demonstrating favorable economic growth and the market there for hygiene products has considerable growth potential, not least for incontinence care products, which have shown double-digit growth figures. With the acquisition of Pro Descart in 2011, SCA established a position as the second largest player in the Brazilian incontinence care market.
