SCA's Q2 net profit rises to 2.02B Swedish kronor from 1.53B kronor in year-ago period, on 11.7% year-over-year jump in net sales, to 25.83B kronor; emerging markets accounted for 31% of Q2 sales, helped by acquisition of majority shareholding in Vinda

Debra Garcia

Debra Garcia

STOCKHOLM , July 18, 2014 (press release) – JANUARY 1–JUNE 30, 2014 (compared with same period a year ago)

  • Net sales rose 8% (10% excluding exchange rate effects and divestments) to SEK 50,063m (46,451)
  • Organic sales growth, which excludes exchange rate effects, acquisitions and divestments, was 3% (4% including Vinda’s organic sales growth)
  • Operating profit excluding items affecting comparability rose 21% (21% excluding exchange rate effects and divestments) to SEK 5,564m (4,593)
  • The operating margin excluding items affecting comparability was 11.1% (9.9%)
  • Profit before tax, excluding items affecting comparability, rose 24% (24% excluding exchange rate effects and divestments) to SEK 5,081m (4,087)
  • Items affecting comparability totaled SEK -405m (-791)
  • Earnings per share were SEK 4.66 (3.22)
  • Cash flow from current operations was SEK 2,078m (2,113)
  • Recalculations have been made for previous periods on account of new and amended IFRSs and rules governing consolidated financial statements and joint arrangements (see note 6)
CEO’S COMMENTS
We have presented a report for the second quarter of 2014 with continued sales growth, higher earnings and a higher margin compared with the same period a year ago. During the quarter, several innovations and product launches were carried out under the Libero, Libresse, TENA and Tork brands. The efficiency programs in the hygiene and forest products operations continue to deliver cost savings according to plan. Our Tissue and Forest Products business areas showed significant earnings growth. Personal Care was negatively impacted by higher raw material costs and negative exchange rate effects in emerging markets.

Consolidated net sales for the second quarter of 2014 grew 12% compared with the same period a year ago. Organic sales growth was 3.3% and pertained to all business areas. Growth was mainly in emerging markets and in the Forest Products business area.

Operating profit for the second quarter of 2014, excluding items affecting comparability, rose 29% compared with the same period a year ago. The increase is mainly attributable to a better price/mix, higher volumes, cost savings, the acquisition of the majority shareholding in the Chinese company Vinda, and gains on forest swaps. The operating margin excluding items affecting comparability increased by 1.5 percentage points to 11.4%. Earnings per share grew by 56%. Operating cash flow increased by 28% to SEK 2,060m.

As part of our strategy to grow in emerging markets, SCA and Vinda have concluded an agreement under which Vinda will take over SCA’s hygiene operations in China, which will lead to mutual benefits in distribution, sales, innovation, and research and development. SCA’s joint venture in Australia, New Zealand and Fiji – Asaleo Care – has been floated on the Australian Securities Exchange (ASX). SCA’s holding in Asaleo Care after the IPO is approximately 32.5%.

Click here for complete report.

Industry Intelligence Inc. editor's note: In an omitted table, SCA reports second-quarter 2014 net income of 2.017 billion Swedish kronor and net sales of 25.829 billion kronor, compared with second-quarter 2013 net income of 1.527 billion kronor and net sales of 23.119 billion kronor.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

Share:

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.