STOCKHOLM, Oct. 25, 2019 /PRNewswire/ -- JANUARY 1 - SEPTEMBER 30, 2019
(compared
with the corresponding period a year
ago)
- Net sales increased 9.0% to SEK
95,289m
(87,388)
- Organic net sales increased
4.8%
- In emerging markets, which accounted for 36% of net sales,
organic net sales increased
9.8%
- Operating profit before amortization of acquisition-related
intangible assets (EBITA) increased 28% to SEK 10,387m
(8,085)
- Adjusted EBITA increased 17% to SEK
11,098m
(9,484)
- Adjusted EBITA margin increased 0.7 percentage points to 11.6%
(10.9)
- Profit for the period increased 45% to SEK 7,166m
(4,935)
- Earnings per share increased 45% to SEK
9.25
(6.38)
- Adjusted earnings per share increased 27% to SEK 10.59
(8.35)
- Cash flow from current operations increased to SEK 9,529m (3,968)
SUMMARY OF THE THIRD QUARTER OF 2019
The quarter was characterized by strong development in terms of
growth and profitability. Organic net sales increased 5.9% and the
adjusted EBITA margin rose 2.6 percentage points to 12.8%. All
business areas reported higher margins. Earnings per share
increased 150% to SEK 3.53.
All business areas demonstrated healthy growth due to
implemented price increases, a better mix and higher volumes.
Growth was strengthened by innovations and investments in sales and
marketing activities.
Our online sales continued to perform favorably and totaled
approximately SEK 9bn for the first
nine months of 2019, corresponding to about 10% of total Group net
sales.
We continued our successful innovation work to increase customer
and consumer value and reduce the environmental footprint. During
the quarter, Professional Hygiene launched Tork Xpressnap®
Electronic Drive Thru Napkin Dispenser, including such benefits as
increased efficiency for our customers. In Incontinence Products,
we launched TENA ProSkinTM Protective Underwear, with
different models for men and women. Essity, together with our
brands Saba and Tork, has entered an agreement with UNICEF in
Mexico to jointly spread awareness
of the importance of good hand hygiene and to break the barriers
surrounding menstruation. Furthermore, Professional Hygiene
with the Tork brand launched a virtual reality app to provide
education in the area of hand hygiene.
Total cost savings amounted to SEK
271m during the quarter, of which SEK
179m was related to the Group-wide cost-savings program.
Ongoing cost savings in addition to this program amounted to
SEK 92m. The lower rate was due to
temporarily higher production and distribution costs, mainly
attributable to disruptions in connection with the start-up of new
production capacity, and a higher pace of product launches,
combined with higher demand. On this basis, we have changed our
ambition to achieve SEK
600-700m in ongoing savings
and SEK 1.2-1.3bn in total cost
savings for full-year 2019.
The Group's net sales increased 9.8% in the third quarter of
2019 compared with the corresponding period a year ago. Organic net
sales increased 5.9%, of which volume accounted for 3.8% and
price/mix for 2.1%. In emerging markets, which accounted for 36% of
net sales, organic net sales increased 9.8%, while the increase in
mature markets was 3.8%.
The Group's adjusted EBITA in the third quarter of 2019
increased 38% compared with the corresponding period a year ago.
Earnings were positively impacted by higher prices, a better mix,
higher volumes, lower raw material and energy costs and cost
savings. Stock revaluations, due to lower raw material prices, and
higher distribution costs had a negative impact on earnings. While
the Group reported an increase in its sales and marketing costs,
these were lower as a proportion of total net sales. The Group's
adjusted EBITA margin increased 2.6 percentage points to 12.8%. The
adjusted return on capital employed was 14.3%. Operating cash flow
increased 73%, primarily related to a higher operating cash surplus
and changes in working capital.
INVITATION TO PRESENTATION OF INTERIM REPORT THIRD QUARTER
2019
Media and analysts are invited to participate in a telephone and
web presentation at which President and CEO Magnus Groth will present the report and respond
to questions.
Presentation
Date: Friday,
October 25, 2019
Time: 9:00 a.m. CET
Link to Web presentation:
https://essity.videosync.fi/2019-10-25-q3
Telephone: +44-(0)207-192-80 00, +1-631-510-74-95 or
+46-(0)8-506-921-80. Please call in well in advance of the start of
the presentation. Indicate "Essity" or conference ID
2985420.
For further information, please contact:
Fredrik Rystedt
CFO and Executive Vice President
+46-(0)8-788-51-31
Johan Karlsson
Vice President Investor Relations
Group Function Communications
+46-(0)8-788-51-30
Joséphine Edwall Björklund
Senior Vice President
Group Function Communications
+46-(0)8-788-52-34
Per Lorentz
Vice President Corporate Communications
Group Function Communications
+46-(0)8-788-52-51
NB:
This information is such that Essity Aktiebolag (publ) is
obligated to make public pursuant to the EU Market Abuse
Regulation. 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. The information was
submitted for publication, through the agency of the contact person
set out below, at 07:00 CET on
October 25, 2019. This interim report
was not reviewed by the company's auditors.
Karl Stoltz
Media Relations Manager
+46-(0)8-788-51-55
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/essity/r/interim-report-third-quarter-2019,c2941249
The following files are available for download:
https://mb.cision.com/Main/15798/2941249/1129678.pdf
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SOURCE Essity