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%
· 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)
(Table included in attached pdf)
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
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%.
For further information, please contact:
Johan Karlsson, Vice President Investor Relations, Group Function
Communications, +46 8 788 51 30
Boo Ehlin, Vice President Media Relations, Group Function Communications, +46 8
788 51 36
Joséphine Edwall-Björklund, Senior Vice President, Group Function
Communications, +46 8 788 52 34
SCA discloses the information provided herein pursuant to the Securities Markets
Act. This report has been prepared in both Swedish and English versions. In case
of variations in the content between the two versions, the Swedish version shall
govern. Submitted for publication on July 18, 2014, at 12 noon CET.
The Board of Directors and President certify that the interim report gives a
true and fair view of the Parent Company’s and Group’s operations, financial
position and results of operations, and describes material risks and
uncertainties facing the Parent Company and the companies included in the Group.
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