Tissue World Magazine
Alexandra Stuthridge, Technical Business Manager, BioProducts Institute (BPI)

SCA has reported an increase in net sales in its Q1 interim report, up 15% to SEK 27,958m.

Between 1 January and 31 March 2015 compared with a year ago operating profit also increased 9% to SEK 2,872m while pre-tax profit increased 11% to SEK 2,602m.

CEO and president Magnus Groth said: “We delivered good organic sales growth and a higher operating profit in all business areas during the first quarter of 2015 compared with the same period a year ago.

“Emerging markets have continued to show high growth and sales in Europe also developed well.”

The global hygiene products market “was affected by greater competition, low growth in mature markets and continued favourable growth in emerging markets”.

The company said the European and North American markets for incontinence products showed low growth in the institutions and home care sectors, and continued good growth in the retail market.

Emerging markets showed favourable growth in demand for incontinence products.

Tissue showed an operating profit increase of 12% to SEK 1,556m because of a better price/mix, higher volumes and cost savings.

Net sales for tissue increased 18% to SEK 15,435m.

For consumer tissue, organic sales growth was 7% and for emerging markets, particularly China, there was a high growth in sales.

For AfH tissue, organic sales growth was 2%. The increase was mainly related to North America.

Groth added the company had invested and will continue to invest in emerging markets, where net sales grew 11%.

In March, SCA inaugurated its first manufacturing facility for personal care and tissue products in India.