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

SCA has said acquisitions, higher volumes and cost savings have contributed to its tissue division’s earnings improvement.

Between 1 January and 31 March 2013 compared with the same time a year ago, net sales for the division rose 28% to SEK 11,630m.

Higher volumes increased sales by 3% and acquisitions increased sales by 30%.
Sales in emerging markets rose 17% and sales of consumer tissue rose 35% mainly as a result of acquisitions in Europe and Latin America.

Sales of AfH tissue rose 28% mainly related to the acquisition in Europe.

Chief executive Jan Johansson said the hygiene operations are showing “favourable sales growth and improved earnings”.

He said: “The efficiency programmes in the hygiene and forest products operations are continuing according to plan.

“Consolidated net sales for the first quarter of 2013 rose 20% compared with the same period a year ago.

“Operating profit excluding exchange rate effects and items affecting comparability rose 25%. The corresponding profit for personal care and tissue rose 27% and 40%.”

Following SCA’s acquisition of Georgia-Pacific’s European tissue operation in 2012, the European Commission set conditions for divestments of consumer tissue businesses. The European Commission has now approved all of SCA’s divestments.

For the group, net sales rose 15% to SEK 22,386m while pre-tax profit increased 29% to SEK 1,941m.