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2015 sales at hygienic products maker SCA up 11%

01 Feb '16

3 min read

Sales at Swedish hygienic products producer SCA rose 11 per cent year over year to SEK 115,316 million in the 12 months period ending December 31, 2015.

“However, excluding exchange rate effects, sales grew slower at 5 per cent year on year, while organic sales growth, which excludes exchange rate effects, acquisitions and divestments too was 5 per cent,” a press release said.

Operating profit, excluding items affecting comparability climbed 10 per cent in 2015 to SEK 13,014 million as against SEK 11,849 in 2014.

According to the company, operating margin, excluding items affecting comparability stood at 11.3 per cent in 2015, down from 11.1 per cent in its prior year.

In the reporting period, the company which has a portfolio of incontinence products, baby diapers and feminine care products said profit before tax, excluding items affecting comparability went up 11 per cent to SEK 12,059 million.

While, earnings per share in the period under review amounted to SEK 9.97 compared to SEK 9.40 in the previous year, return on capital employed, excluding items affecting comparability, was 12.0 per cent.

Cash flow from current operations was SEK 9,890 million, up from SEK 8,149 million in 2014 and the company's directors proposed an increase in the dividend to SEK 5.75 per share from SEK 5.25 in 2014.

On January 21, 2016, SCA completed the acquisition of Wausau Paper Corp., a North American away-from-home tissue company.

Consolidated net sales for the fourth quarter of 2015 increased by 6 per cent compared with the same period a year ago, while organic sales growth was 4 per cent.

“In emerging markets, which accounted for 32 per cent of sales, organic sales growth was 11 per cent, and in mature markets organic sales growth was just 2 per cent,” SCA added in the press release.

Consolidated operating profit for the fourth quarter of 2015, excluding items affecting comparability and currency translation effects, rose 5 per cent compared with the same quarter of 2014.

“The increase is mainly attributable to a better price/mix, higher volumes and cost savings,” the company explained.

In the quarter under review, raw material costs surged by SEK 529 mainly due to the stronger US dollar, but operating margin, excluding items affecting comparability, was unchanged at 11.9 per cent from a year ago quarter.

For the fourth quarter of 2015, operating cash flow drove up by just 1 per cent and return on capital employed, excluding items affecting comparability, grew by 1.1 percentage points to 13.1 per cent.

CEO Magnus Groth said, “2015 was an eventful year as we continued the work with our strategic priorities profitable growth, innovation and efficiency.”

“Our successful innovation work resulted in approximately thirty innovations and product launches and the efficiency improvement measures continued with undiminished strength across the value chain,” he too added. (AR)

Fibre2Fashion News Desk – India