SCA Posts Strong Third Quarter 2014 Results on Sales Growth
"Consolidated net sales for the third quarter of 2014 increased by 16% compared with the same period a year ago." – Jan Johansson, President and CEO of SCA.
Oct. 29, 2014 - SCA reported results from the third quarter 2014 and interim period January 1 - September 30, 2014. Jan Johansson, President and CEO of SCA offered the following comments:
"SCA had yet another strong quarter and despite higher competition and low growth in mature markets, we delivered good organic sales growth. We continued our successful innovation work, and during the quarter we introduced a number of innovations and product launches under the Libresse, Lotus, Saba, Tempo and Tork brands.
"Our work on achieving greater cost efficiency continued, however, we were negatively affected by higher raw material costs due to both higher prices and a stronger dollar.
"The Tissue business area posted a considerably higher operating profit, however, the margin was negatively affected by the consolidation of Vinda. Vinda showed a strong sales growth of 22%.
"The Personal Care business area reported higher earnings as a result of higher volumes and cost savings, which compensated for higher raw material costs stemming partly from a stronger dollar. In Europe, sales and operating profit increased for both Personal Care and Tissue.
"The business area Forest Products showed a considerable earnings improvement, mainly owing to higher prices (including exchange rate effects) and cost savings.
"Consolidated net sales for the third quarter of 2014 increased by 16% compared with the same period a year ago. Organic sales growth was 4%, with growth across all business areas. Growth was mainly related to the hygiene operations' emerging markets and the Forest Products business area.
"Operating profit for the third quarter of 2014, excluding items affecting comparability, rose 16% over the same period a year ago. The increase is mainly attributable to a better price/mix, higher volumes, cost savings and the acquisition of the majority shareholding in the Chinese company Vinda. Higher raw material costs had a negative impact on earnings. The operating margin, excluding items affecting comparability, was 11.4% which is the same level as a year earlier. Earnings per share grew 30% to SEK 2.68. Operating cash flow increased by 59%."
SCA's complete Interim Report can be found on its website: www.sca.com.
SCA is a leading global hygiene and forest products company. The Group develops and produces sustainable personal care, tissue and forest products. To learn more, please visit: www.sca.com.
SOURCE: SCA (Svenska Cellulosa AB)