STOCKHOLM, April 27, 2017 /PRNewswire/ -- JANUARY 1 – MARCH 31, 2017 (compared with the corresponding period a year ago)
- Net sales totaled SEK 25,268m (24,248)
- Organic sales, excluding exchange rate effects, acquisitions and divestments, increased 1,0%
- Operating profit before amortization of acquisition-related intangible assets (EBITA) rose 1% to SEK 2,596m (2,558)
- Adjusted operating profit before amortization of acquisition-related intangible assets (EBITA) rose 6% to SEK 2,917m (2,744)
- Adjusted operating profit increased 7% to SEK 2,896m (2,713)
- The adjusted EBITA margin was 11.5% (11.3)
- Adjusted profit before tax rose 9% to SEK 2,630m (2,410)
- Items affecting comparability totaled SEK -409m (-191), of which SEK -134m (-185) affected cash flow
- Profit for the period was SEK 1,656m (1,625)
- Earnings per share amounted to SEK 2.08 (2.15)
- The adjusted return on capital employed was 15.6% (15.5)
- Cash flow from current operations was SEK 2,282m (1,043)
- The acquisition of BSN medical was closed on April 3, 2017
- SCA's Annual General Meeting approved the distribution and listing of the hygiene business – the future hygiene and health company Essity AB. The preparations for the distribution and the listing of SCA Hygiene AB are under way, and the intention is that the first day of separate trading in the two companies will be in June 2017.
- The financial targets for the Group have been changed and are now annual organic growth of above 3% and an adjusted return on capital employed of above 15%
 Indicative earnings per share on the assumption that the number of issued shares in SCA Hygiene AB as of March 31, 2017 corresponded to the number of issued shares in SCA (702.3 millions) at the same date. The actual number of shares issued in SCA Hygiene AB as of March 31, 2017 was 5,000.
(Table included in attached pdf)
At the AGM on April 5, 2017, SCA's shareholders decided to split SCA into two listed companies: SCA, an efficient and well-invested forest products company, and Essity, a leading global hygiene and health company. The split aims to increase value for shareholders in the long term through increased focus, customer value and development opportunities and by enabling each company to successfully realize its strategies. We look forward to an exciting future for these two strong listed companies.
On April 3, 2017, the Group completed the acquisition of BSN medical, a leading medical solutions company. The acquisition of BSN medical is an excellent strategic fit for SCA and will contribute to the realization of our vision – dedicated to improving well-being through leading hygiene and health solutions. BSN medical has leading market positions in several attractive medical product categories and represents a new growth platform.
We further developed our customer and consumer offerings, and launched five innovations during the quarter. In Latin America, we launched innovations in Consumer Tissue under the Familia brand and in Feminine Care under the Saba brand. In Russia, we upgraded our Baby Care offering under the Libero brand. For Incontinence Products, we launched two innovations under the globally leading TENA brand. In France, during April 2017, we launched products in Baby Care under our strong Lotus brand.
Our activities to continuously enhance efficiency and reduce costs across the supply chain continued. As part of our Tissue Roadmap, we approved investments during the quarter in Mexico and the UK to strengthen our product offerings. Furthermore, a tissue machine was closed and a tissue plant was divested in the UK. These measures are aligned with our strategy to streamline production and secure capacity for future growth to increase value creation in the Consumer Tissue and Professional Hygiene business areas.
We continued our efforts to improve or exit underperforming market positions. Significantly improved profitability for Incontinence Products in North America and the discontinuation of Baby Care operations in Mexico and the hygiene business in India had a positive impact on the margin in Personal Care during the first quarter.
Net sales for the Group in the first quarter of 2017 rose 4.2% compared with the corresponding period a year ago. Organic sales increased 1.0%. Organic sales increased 5.2% in emerging markets, which accounted for 36% of net sales, and decreased 0.9% in mature markets.
Adjusted EBITA for the Group in the first quarter of 2017, excluding currency translation effects, acquisitions and divestments, rose 4% compared with the corresponding period a year ago. This increase was primarily attributable to higher volumes, a better price/mix, cost savings and other measures to improve profitability. Selling costs were higher, and investments were made in increased marketing activities. Higher energy and raw material costs had a negative earnings effect. The Group's adjusted EBITA margin increased 0.2 percentage points to 11.5%. Operating cash flow rose 60%. The adjusted return on capital employed increased 0.1 percentage points to 15.6%.
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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. The information was submitted for publication, through the agency of the contact person set out below, at 8:00 CET on April 27, 2017. This interim report has been reviewed by the company's auditors.
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