Continued efficiency enhancements and growth top agenda
Today, SCA is hosting the Capital Markets Day in Stockholm. The strategy of recent years of focusing on costs, cash flow, capital efficiency and innovation remains firmly in place. Increased growth was added to the Group’s strategic agenda in 2010.
“SCA has implemented key efficiency-enhancement measures and boosted the pace of its new product launches. We have managed to grow both in mature and emerging markets. Our global TENA and Tork brands, which each generate more than EUR 1 billion in annual sales, have strengthened their market shares. To capitalise on the growth opportunities in the hygiene operation, we have conducted acquisitions and investments in a number of growth markets, including Brazil, Russia, Turkey, Mexico and Argentina,” said Jan Johansson.
Jan Johansson pointed out that the completed action programmes have reduced the cost base and made SCA a stronger company than it previously was. Focusing on cash flow has led to lower net debt and improved the debt payment capacity, giving SCA better means to grow.
SCA will grow by reinforcing existing and establishing new market-leading positions. The aim is to reduce the number of local brands and increase the number of global brands.
“SCA is currently the world’s third largest hygiene company and hygiene products now account for 60% of the Group’s sales. The aim is to continue to grow by capitalising on the growth opportunities created by the global population increase, improved prosperity, an aging population and greater market penetration. We can also see a rising consumer interest in convenience and sustainability,” said Jan Johansson.
In the short term, it is difficult to assess the impact of the global economic situation. Today, no changes can be seen among our customers. Demand is strong in all business areas.
SCA’s Group-wide financial target of a return on capital employed of 13% over the course of an economic cycle remains in place.