CEO Magnus Groth has revealed that the second quarter of 2016 for his company SCA showed continued organic growth in adjusted operating profit compared with the same period a year ago.
The company’s net sales amounted to SEK 57,263 million (AUD $88,330 million) and its organic sales growth, which excludes exchange rate effects, acquisitions and divestments, was 2 per cent. In emerging markets, which accounted for 31 per cent of net sales, organic sales growth was 6 per cent.
Operating profit decreased by 8 per cent to SEK 5,348 million (AUD $852 million) and adjusted operating profit, which excludes items affecting comparability, rose by 9 per cent to SEK 6,652 million (AUD $1025 million).
“During the second quarter of 2016 we decided to close a tissue production plant in Spain,” explained Mr Groth. “This is aligned with our long-term strategy to optimise our geographic production footprint in order to drive cost and capital efficiency and further increase value creation in tissue.
“The company has introduced seven innovations in consumer tissue, among other areas, under the Lotus, Okay, Plenty and Zewa brands, and in Away-from-Home tissue and incontinence products under its globally leading brands Tork and TENA.”
Mr Groth also added that on 1 April this year, SCA’s hygiene operations in Southeast Asia, Taiwan and South Korea were integrated with Vinda. Work is now under way on leveraging joint strengths to build a leading Asian hygiene business.