Tissue World Magazine, World News

SCA has reported an EBITDA decreased of 2% to SEK 797m in its first quarter 2017 interim results.

Net sales increased 5% to SEK 3,969m compared to the same time a year ago, while operating profit decreased 7% to SEK 498m.

Net sales for the group’s hygiene business for the first quarter of 2017 rose 4.2% compared with the corresponding period a year ago.

Organic sales increased 1.0%. Organic sales increased 5.2% in emerging markets, which accounted for 36% of net sales and decreased 0.9% in mature markets.

Higher energy and raw material costs had a negative effect on earnings.

On 3 April 2017, the group completed the acquisition of BSN medical, a leading medical solutions company that will be included in the Group’s hygiene business.

On 5 April, SCA decided to split SCA into two listed companies, the forest products company SCA and hygiene company Essity.

SCA will continue to operate as a forest products company that will include the forest products operations and all forest land currently owned by the group.

Its hygiene business, including the current business areas of Personal Care (including the recently acquired BSN medical) and Tissue will become a leading global hygiene and health company operating under the name Essity.

The split will be carried out no later than in the second half of 2017.

In addition to their existing shareholding, SCA’s shareholders will also receive shares in the newly listed hygiene and health company Essity in connection with the listing.

Magnus Groth, currently president and chief executive of SCA and future president and chief executive of the new hygiene and health company Essity: “This will increase value for shareholders in the long-term through increased focus, customer value, development opportunities and enables each company to successfully realise its strategies.”

The company said that synergies between the operations have diminished over time.

Following the split, Essity will be a global hygiene and health company that develops, produces and sells personal care and tissue products.

With the acquisition of BSN medical, a leading medical solutions company, Essity strengthened its capabilities in the health sector.