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SCA Reports Flat Sales

Personal care sales down 4%

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By: Tara Olivo

Associate Editor at Nonwovens Industry, Rodman Media

SCA’s third quarter 2016 net sales were level compared with the same period a year ago and amounted to SEK 29.154 billion ($3.2 billion). Organic sales growth, which excludes exchange rate effects, acquisitions and divestments, was 0%, of which volume accounted for 0% and price/mix for 0%. Organic sales growth was -2% in mature markets and 4% in emerging markets. Emerging markets accounted for 31% of net sales. Exchange rate effects decreased net sales by 3%, and the acquisition of Wausau Paper Corp. increased net sales by 3%.

In the Personal Care segment, net sales decreased by 4% to SEK 8.362 billion ($937 million). Organic sales growth was 0%, of which price/mix was 0% and volume 0%. The divestment of the baby diaper operation in South Africa decreased net sales by 1%. Organic sales growth was 0% in mature markets and 0% in emerging markets. Emerging markets accounted for 40% of net sales. Exchange rate effects decreased net sales by 3%.

For incontinence products, under the Tena brand, organic sales growth was 2%. Growth is attributable to the retail sector in Western Europe and emerging markets. Lower sales to the European health care sector had a negative effect on growth. For baby diapers, organic sales growth was -7%, mainly owing to lower sales in Russia, Latin America, the Middle East and Africa as a result of increased competition, among other things. For feminine care products, organic sales growth was 7%, mainly attributable to Latin America and Western Europe, where SCA’s market shares have increased.

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