Swedish paper products firm SCA, which produces the Velvet and Tempo brands among others, has posted an organic sales increase of 1.0% in the first quarter of its financial year.
The increase excludes exchange rate effects, acquisitions and divestments, and brings SCA’s first quarter sales to SEK 25,268 million (€2.64 billion).
EBITDA at the group rose 1% to SEK 2,596 million, while adjusted operating profit increased 7% to SEK 2,896 million.
SCA recently announced it will soon split into two companies, SCA, a forest products company, and Essity, a hygiene and health products company; a move that has now been approved by shareholders.
This move will be actioned this coming June.
Commenting on the move, SCA CEO and President Magnus Groth said, “The split aims to increase value for shareholders in the long term through increased focus, customer value and development opportunities and by enabling each company to successfully realise its strategies.
“We look forward to an exciting future for these two strong listed companies.”
Speaking about SCA’s improved EBITDA performance, Groth added that the increase was “primarily attributable to higher volumes, a better price/mix, cost savings and other measures to improve profitability. Selling costs were higher, and investments were made in increased marketing activities.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.