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SCA Sales Continue to Climb

Overall sales up 13%, personal care sales up 12%.

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By: Tara Olivo

Associate Editor at Nonwovens Industry, Rodman Media

SCA reports its second quarter net sales rose to SEK 29,219 million ($3.4 billion), up 13% from the second quarter of 2014. Organic sales growth, which excludes exchange rate effects, acquisitions and divestments, was 5%, of which volume accounted for 3% and price/mix for 2%.

Operating profit, excluding items affecting comparability, rose 10% (9% excluding gains on forest swaps and currency translation effects) to SEK 3,217 million ($376.5 million). A better price/mix, higher volumes and cost savings contributed to the earnings increase.

Profit before tax, excluding items affecting comparability, rose 10% (3% excluding exchange rate effects) to SEK 3,024 million ($353.9 million).

Profit for the period, excluding items affecting comparability, rose 11% (4% excluding currency translation effects) to SEK 2,243 million ($262.5 million).

In SCA’s personal care segment, net sales in the second quarter rose 12% to SEK 8,676 million ($1 billion). Organic sales growth was 6%, of which price/mix accounted for 4% and volume for 2%. Organic sales growth was 2% in mature markets and 11% in emerging markets. Emerging markets accounted for 44% of sales. Exchange rate effects increased sales by 6%.

For incontinence products, under the globally leading Tena brand, organic sales growth was 3% compared with the same period a year ago. Growth is attributable to Western Europe and emerging markets, which compensated for lower sales in North America. For baby diapers, organic sales growth was 4%, mainly attributable to Europe. For feminine care products, organic sales growth was 18%, attributable to emerging markets and Western Europe.

Operating profit, excluding items affecting comparability, rose 11% (11% excluding currency translation effects) to SEK 977 million ($114.3 million). Profit was favorably affected by a better price/mix, higher volumes and cost savings. Higher raw material costs resulting from the stronger U.S. dollar and higher pulp prices had a negative earnings impact. Investments were made in increased marketing activities for incontinence products and in India.

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