Net sales fell by 2% (rose by 4% excluding
exchange rate effects) to SEK 39,118m (39,870).
Higher prices increased sales by 2% and higher
volumes increased sales by 2%. Sales in emerging
markets rose by 10%, excluding exchange
rate effects. Sales of consumer tissue increased
by 3%, excluding exchange rate effects. Emerging
markets recorded substantial growth in sales.
Sales of AFH tissue increased by 6%, excluding exchange rate effects, principally attributable to significant growth in Eastern Europe as well as North and Latin America.
In AFH tissue, SCA increased market shares in Europe for the Tork brand. SCA’s environmentally- certified tissue products contributed to securing new contracts in Europe, the US and Asia Pacific. A new, user-friendly soap dispenser as part of the Tork Elevation range was launched under AFH tissue during the year.
SCA has entered into an agreement to acquire Georgia-Pacific’s European tissue operations, with annual sales of SEK 11.9bn in 2010 (EUR 1.25bn). The purchase consideration amounts to SEK 12bn (EUR 1.32bn). The acquisition is strategically made-to-measure for SCA and will strengthen SCA’s product offering and geographic presence in Europe. The annual synergies are estimated at EUR 125m with full effect reached three years following conclusion of the acquisition. In the first year, the transaction is already expected to deliver an increase in earnings per share and cash flow. Following full implementation of synergies, earnings per share is expected to increase by SEK 1.70. The transaction is subject to customary examination by the relevant authorities and is expected to be completed in full during the second quarter of 2012.
Operating profit
rose 4% (10% excluding exchange rate effects) and amounted to SEK 3,150m (3,041). Profit was positively impacted by higher prices, a changed product mix and increased volumes. A substantial increase in raw material costs of SEK 338m in combination with higher distribution costs and negative exchange rate effects negatively impacted operating profit.
was 8.1% (7.6).
totalled 9% (8).
Operating cash surplus
increased and amounted to SEK 5,347m (5,277). Operating cash flow was SEK 3,446m (4,033). An increase in working capital reduced cash flow.
Capital expenditures
amounted to SEK 2,353m (2,522).