SCA: Year-End Report 2014
30 January 2015 - 7:45PM
Business Wire
Regulatory News:
SCA (Svenska Cellulosa AB) (STO:SCAA) (STO:SCAB)
JANUARY 1–DECEMBER 31, 2014 (compared with same period a year
ago)
· Net sales rose 12% (10% excluding exchange rate effects and
divestments) to SEK 104,054m (92,873)
· Organic sales growth, which excludes exchange rate effects,
acquisitions and divestments, was 3% (4% including Vinda’s organic
sales growth)
· Operating profit, excluding items affecting comparability,
rose 14% (12% excluding exchange rate effects and divestments) to
SEK 11,849m (10,381)
· The operating margin, excluding items affecting comparability,
was 11.4% (11.2%)
· Profit before tax, excluding items affecting comparability,
rose 17% (14% excluding exchange rate effects and divestments) to
SEK 10,888m (9,320)
· Items affecting comparability totaled SEK -1,400m (-1,239)
· Earnings per share were SEK 9.40 (7.90)
· Cash flow from current operations was SEK 8,149m (6,252)
· The Board of Directors proposes an increase in the dividend by
10.5% to SEK 5.25 per share (4.75).
· Recalculations have been made for previous periods on account
of new and amended IFRSs and rules governing consolidated financial
statements and joint arrangements (see note 6)
(Table included in pdf at:
http://news.cision.com/sca/r/year-end-report-2014,c9715377)
CEO’S COMMENTS
In 2014 SCA delivered its highest profit before tax ever and
good organic sales growth. We increased our operating profit,
excluding items affecting comparability, by SEK 1,468m. We achieved
this thanks to the continued work with our strategic priorities –
growth, innovation, and efficiency. During the year SCA
strengthened its cooperation with the Chinese company Vinda, in
which SCA is the majority shareholder, by transferring its hygiene
operations in China, Hong Kong and Macau to Vinda. We also
continued our successful innovation work and introduced about
thirty innovations and product launches under the Libero, Libresse,
Lotus, Saba, Tempo, TENA and Tork brands, among others. Our work on
achieving increased cost efficiency continues. Our three efficiency
programs have continued to deliver substantial savings. Two of the
programs were concluded at year-end, however, our work with
productivity and cost-efficiency continues. The year was
characterized by weak performance of the global economy and
geopolitical tensions. The global market for hygiene products was
affected by higher competition and low growth in mature
markets.
Consolidated net sales for the fourth quarter of 2014 increased
by 17% compared with the same period a year ago. Organic sales
growth was 4% (5% including Vinda’s organic sales growth), with
growth across all business areas. Growth was mainly related to the
hygiene operations’ emerging markets and the Forest Products
business area. Operating profit, excluding items affecting
comparability and gains on forest swaps, rose 20% (3% including
gains on forest swaps during the same period a year ago), which is
SCA’s highest quarterly profit ever. The increase is mainly
attributable to a better price/mix, higher volumes, cost savings
and the acquisition of the majority shareholding in the Chinese
company Vinda. Higher raw material costs resulting from higher
prices and a stronger dollar had a negative impact on earnings. The
operating margin, excluding items affecting comparability, was
11.9%. Operating cash flow increased by 31%. The Board of Directors
proposes an increase in the dividend, by 10.5% to SEK 5.25 per
share. Tissue posted a considerably higher operating profit for the
fourth quarter of 2014 compared with the same period a year ago.
Operating profit was favorably affected by higher volumes, cost
savings and the acquisition of the majority shareholding in the
Chinese company Vinda. Consolidation of Vinda had a negative impact
on the margin. Personal Care increased its earnings as a result of
higher volumes and cost savings, which compensated for higher raw
material costs. The lower operating profit for Forest Products is
explained by gains on forest swaps during the fourth quarter of
2013. Excluding this effect, earnings increased mainly as a result
of higher prices (including exchange rate effects) and cost
savings.
NB
SCA discloses the information provided herein pursuant to the
Securities Markets Act. This report has been prepared in both
Swedish and English versions. In case of variations in the content
between the two versions, the Swedish version shall govern.
Submitted for publication on January 30, 2015, at 08.00 CET. This
report has not been reviewed by the company’s auditors.
This information was brought to you by Cision
http://news.cision.com
Group Function CommunicationsJohan KarlssonVice President
Investor Relations+46 8 788 51 30orKarl StoltzMedia Relations
Manager+46 8 788 51 55orJoséphine Edwall-Bj�rklundSenior Vice
President+46 8 788 52 34