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SCA’s Sales Up

Personal care sales down 2% for the full year

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By: Tara Olivo

Associate Editor at Nonwovens Industry, Rodman Media

SCA’s net sales from January-December 2016 increased by 2% compared with the same period a year ago, to SEK 117.3 billion ($13.3 billion). Organic sales, which exclude exchange rate effects, acquisitions and divestments, increased by 2%, of which volume accounted for 1% and price/mix for 1%. Organic sales were level in mature markets compared with the same period a year ago and increased by 7% in emerging markets. Emerging markets accounted for 32% of net sales. Exchange rate effects decreased net sales by 3%. The acquisition of Wausau Paper Corp. increased net sales by 3%.

In the personal care segment, net sales decreased by 2% to SEK 33.7 billion ($3.8 billion). Organic sales, which exclude exchange rate effects, acquisitions and divestments, increased by 3%, of which volume accounted for 2% and price/mix for 1%. The divestment of the baby diaper business in South Africa decreased net sales by 1%. Organic sales increased by 2% in mature markets and by 3% in emerging markets. Emerging markets accounted for 41% of net sales. Exchange rate effects decreased net sales by 4%.

For incontinence products, organic sales increased by 2%. Growth is attributable to emerging markets and Western Europe. For baby diapers, organic sales decreased by 1%. Western Europe showed high growth, while sales in emerging markets decreased. For feminine care products, organic sales increased by 10%, attributable to emerging markets and Western Europe.

In the fourth quarter of 2016, net sales increased by 6% to SEK 30.9 billion ($3.5 billion). Organic sales, which exclude exchange rate effects, acquisitions and divestments, increased by 2%, of which volume accounted for 2% and price/mix for 0%. Organic sales were level in mature markets compared with the same period a year ago and increased by 7% in emerging markets. Emerging markets accounted for 33% of net sales. Exchange rate effects increased net sales by 1%, and the acquisition of Wausau Paper Corp. increased net sales by 3%.

In the personal care segment, net sales were level with the same period a year ago and amounted to SEK 8.7 billion ($985 million). Organic sales decreased by 1%, of which price/mix accounted for growth of 1% and volume accounted for -2%. Organic sales were level in mature markets compared with the same period a year ago and decreased by 1% in emerging markets. Emerging markets accounted for 41% of net sales. Exchange rate effects increased net sales by 1%.

For incontinence products, organic sales growth was level with the same period a year ago. In Europe, the retail sector showed continued high growth, while lower sales to the health care sector had a negative effect on growth. For baby diapers, organic sales decreased by 4%, mainly related to lower sales in Russia, Mexico, the Middle East and Africa as a result of increased competition and the decision to close the baby diaper business in Mexico, among other things. For feminine care products, organic sales increased by 5%, mainly attributable to Latin America, where the market shares have increased.

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