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SCA sees growth in emerging markets

September 4, 2013

Swedish hygiene company SCA reported net sales in its Personal Care segment from January to June 2013 rose 5% to SEK 13,368m ($2.06 billion). Higher volumes and acquisitions increased sales by 4% and 6%, respectively. In emerging markets, sales rose 17% excluding exchange rate effects.

Sales of incontinence care products under the globally leading TENA brand rose 7%, excluding exchange rate effects, driven mainly by emerging markets and favorable growth in Western Europe. Sales of baby diapers rose 9%, excluding exchange rate effects, mainly related to Europe and acquisition in Asia. Sales of feminine care products rose 5%, excluding exchange rate effects, mainly attributable to emerging markets.

Operating profit excluding items affecting comparability was 12% higher than a year ago and amounted to SEK 1,616m ($248 million). Profit was favorably affected by higher volumes, cost savings and acquisitions. Investments in increased marketing activities led to higher volumes, but have weighed down profits in the near term.

In the second quarter of 2013 net sales rose 4%. Higher volumes increased sales by 5%. Acquisitions increased sales by 5%.
Sales of incontinence care products under the globally leading TENA brand rose 6%, excluding exchange rate effects, driven mainly by emerging markets. Sales of baby diapers rose 7%, excluding exchange rate effects. The increase is mainly attributable to higher sales in Eastern Europe and acquisition in Asia. Sales of feminine care products rose 8%, excluding exchange rate effects, mainly attributable to emerging markets.

Operating profit excluding items affecting comparability rose 3% to SEK 806m ($124 million). The earnings improvement can be credited to higher volumes, acquisitions and cost savings. Investments in increased marketing activities led to higher volumes, but have weighed down profits in the near term. Higher raw material costs had a negative impact on profit.

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