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