10.29.15
SCA’s third quarter net sales rose 9% to SEK 29,099 million ($3.4 billion) compared SEK 26,594 million ($3.1 billion) during the third quarter of 2014. Organic sales growth, which excludes exchange rate effects, acquisitions and divestments, was 5%, of which volume accounted for 2% and price/mix for 3%. Organic sales growth was 3% in mature markets and 12% in emerging markets. Emerging markets accounted for 32% of sales. Exchange rate effects increased sales by 4%.
Operating profit, excluding items affecting comparability, rose 14% (10% excluding currency translation effects) to SEK 3,471 million ($409 million) compared to SEK 3,035m ($357.6 million) in the third quarter of 2014. A better price/mix, higher volumes and cost savings contributed to the earnings increase. Raw material costs increased by SEK 758 million ($89 million).
Profit before tax, excluding items affecting comparability, rose 17% (13% excluding exchange rate effects) to SEK 3,238 million ($381.5 million).
Profit for the period, excluding items affecting comparability, rose 16% (12% excluding currency translation effects) to SEK 2,435 million ($287 million).
According to SCA, the global market for hygiene products was affected by greater competition, low growth in mature markets and continued favorable growth in emerging markets during the first nine months of 2015 compared with the same period a year ago. The U.S. dollar strengthened considerably, which among other things led to higher costs for raw materials, such as pulp, purchased in U.S. dollars.
The European and North American markets for incontinence products showed low growth in the institutional and home care sectors, and favorable growth in the retail market during the first nine months of 2015 compared with the same period a year ago. Emerging markets showed favorable growth in demand for incontinence products. The market for incontinence products was affected by greater competition and campaign activity. In western Europe, demand for baby diapers was stable, while demand for feminine care products decreased slightly. In emerging markets, demand grew for baby diapers and feminine care products. The global market for baby diapers was characterized by intense competition and campaign activity, the company reports.
Operating profit, excluding items affecting comparability, rose 14% (10% excluding currency translation effects) to SEK 3,471 million ($409 million) compared to SEK 3,035m ($357.6 million) in the third quarter of 2014. A better price/mix, higher volumes and cost savings contributed to the earnings increase. Raw material costs increased by SEK 758 million ($89 million).
Profit before tax, excluding items affecting comparability, rose 17% (13% excluding exchange rate effects) to SEK 3,238 million ($381.5 million).
Profit for the period, excluding items affecting comparability, rose 16% (12% excluding currency translation effects) to SEK 2,435 million ($287 million).
According to SCA, the global market for hygiene products was affected by greater competition, low growth in mature markets and continued favorable growth in emerging markets during the first nine months of 2015 compared with the same period a year ago. The U.S. dollar strengthened considerably, which among other things led to higher costs for raw materials, such as pulp, purchased in U.S. dollars.
The European and North American markets for incontinence products showed low growth in the institutional and home care sectors, and favorable growth in the retail market during the first nine months of 2015 compared with the same period a year ago. Emerging markets showed favorable growth in demand for incontinence products. The market for incontinence products was affected by greater competition and campaign activity. In western Europe, demand for baby diapers was stable, while demand for feminine care products decreased slightly. In emerging markets, demand grew for baby diapers and feminine care products. The global market for baby diapers was characterized by intense competition and campaign activity, the company reports.