Net selling prices of the consumer tissue segment increased sales 9 per cent while volumes declined approximately 3 per cent. Changes in foreign currency exchange rates reduced sales 4 per cent. Third quarter operating profit of $218 million decreased 2 per cent. The comparison was impacted by input cost inflation, higher marketing, research and general spending and unfavorable foreign currency effects. Results benefited from organic sales growth, cost savings and lower other manufacturing costs.
Sales in North America climbed 5 per cent. Net selling prices rose 7 per cent while volumes declined 2 per cent. Higher net selling prices were achieved across all sub-segments while volume decline was primarily in bathroom tissue.
Sales in D&E markets rose 3 per cent. Net selling prices rose 12 per cent and product mix improved 1 point, while volumes were down 6 per cent. Changes in foreign currency exchange rates decreased sales 5 per cent.
Sales in developed markets outside North America decreased 2 per cent. Changes in foreign currency exchange rates decreased sales 13 percent. Net selling prices rose approximately 12 per cent while volumes declined 1 point.
"Our third quarter results reflect strong execution by our teams around the world in the face of a challenging macro environment," said chairman and CEO Mike Hsu. "We delivered organic sales growth across all our segments and continued to provide our consumers with value-inspired innovation."
"We continue to execute our plan to restore margins over time and are seeing progress with sequential margin improvement this quarter. As we navigate persistent input cost inflation, we're focused on driving our growth strategy, serving consumers, customers and communities while living our purpose of Better Care for a Better World,” Hsu continued.
Fibre2Fashion News Desk (RR)