[Missing text '/newslabels/pressrelease' for 'English']:
JANUARY 1 – MARCH 31, 2017 (compared with the corresponding period a year ago)
- The 2017 Annual General Meeting (AGM) approved the distribution and listing of the hygiene business. Accordingly, the hygiene business is recognized in this report as “operations held for distribution to owners” in accordance with IFRS 5. 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.
Continuing operations (Forest products business)
- Net sales increased 5% and amounted to SEK 3,969m (3,793)
- EBITDA decreased 2% to SEK 797m (813)
- Adjusted EBITDA decreased 1% to SEK 807m (813)
- Operating profit decreased 7% to SEK 498m (533)
- Adjusted operating profit decreased 5% to SEK 508m (533)
- The adjusted EBITDA margin was 20.3% (21.4)
- Adjusted profit before tax decreased 8% to SEK 472m (512)
- Net Profit for the period amounted to SEK 363m (410)
- Earnings per share amounted to SEK 0.52 (0.58)
- Cash flow from current operations was SEK 49m (779)
Total operations (Forest products and hygiene business)
- Net sales increased by 4% to SEK 29,104m (27,915)
- Profit for the period totaled SEK 2,019m (2,035)
- Earnings per share amounted to SEK 2.60 (2.74)
(Table included in attached pdf)
At the Annual General Meeting 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 the value for the 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.
Net sales for the Group’s continuing operations (forest products business) for the first quarter of 2017 rose 5% compared with the corresponding period a year ago. This increase was mainly attributable to higher kraftliner volumes and higher prices in Wood.
Adjusted EBITDA for the Group’s continuing operations (forest products business) for the first quarter of 2017 decreased 1% compared with the corresponding period a year ago. This decrease was mainly attributable to higher energy and raw material costs and a revaluation of approximately SEK 40m related to a fair value measurement of electricity certificates. Higher volumes and prices combined with exchange rate effects had a positive effect on earnings.
Net sales for the Group’s hygiene business for 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’s hygiene business for 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 effect on earnings. 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%.
On April 3, 2017, the Group completed the acquisition of BSN medical, a leading medical solutions company that will be included in the Group’s hygiene business.
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
This information is such that SCA is obligated to make public pursuant to the EU Market Abuse Regulation. 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 not been reviewed by the company’s auditors.
Karl Stoltz, Media Relations Manager, +46 8 788 51 55
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