SCA decreased Adjusted EBITDA margin to 20.3% for its continuing operations of forest products business in 1Q2017

SCA reported 5% increase of continuing operations of Forest products business’ net sales for the first quarter of 2017. The net sales increased to SEK 3,969 million (around USD 450 million) up from SEK 3,793 million y-o-y. The company generated SEK 807 million Adjusted EBITDA (margin 20.3%).

Magnus Groth, SCA’s President and CEO, commented:

“At the Annual General Meeting on April 5, 2017, SCA’s shareholders decided to split SCA into two listed companies: SCA, an efficient and well-invested forest products company, and Essity, a leading global hygiene and health company. The split aims to increase the value for the shareholders in the long-term through increased focus, customer value and development opportunities and by enabling each company to successfully realize its strategies. We look forward to an exciting future for these two strong listed companies.

Net sales for the Group’s continuing operations (forest products business) for the first quarter of 2017 rose 5% compared with the corresponding period a year ago. This increase was mainly attributable to higher kraftliner volumes and higher prices in Wood.

Adjusted EBITDA for the Group’s continuing operations (forest products business) for the first quarter of 2017 decreased 1% compared with the corresponding period a year ago. This decrease was mainly attributable to higher energy and raw material costs and a revaluation of approximately SEK 40m related to a fair value measurement of electricity certificates. Higher volumes and prices combined with exchange rate effects had a positive effect on earnings.”

At the same time, 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. Its Adjusted EBITDA for the first quarter of 2017, excluding currency translation effects, acquisitions and divestments, rose 4% compared with the corresponding period a year ago.

In 4Q2016 SCA increased ROCE to 12.5%.

Check other wood business-related companies 1Q2017 schedules for financial and operating results.

Earlier SCA announced changes in the company’s financial reporting due to the split into forest products and hygiene and health companies.

About SCA:

The company is a leading global hygiene and forest products company. The Group develops and produces sustainable personal care, tissue and forest products. Sales are conducted in about 100 countries under many strong brands, including the leading global brands TENA and Tork, and regional brands, such as Libero, Libresse, Lotus, Nosotras, Saba, Tempo and Vinda. As Europe’s largest private forest owner, SCA places considerable emphasis on sustainable forest management. The Group has about 44,000 employees. Sales in 2015 amounted to more than SEK 115 billion (EUR 12.4 billion). SCA has its headquarters in Stockholm, Sweden, and is listed on NASDAQ OMX Stockholm.

Source: Woodbizforum