Svenska Cellulosa AB: Interim Financial Report
The packaging operations, that were divested on 30 June 2012, are reported only as a separate line item in the income statement – Net profit for the period from disposal group. Comments in this report are thus exclusive of the packaging operations.
The formation of a joint venture in Australia/New Zealand through the sale of 50% of the shares and entailing a deconsolidation of the operations from the start of the year constitutes the divestment that is referred to in the report.
Net sales were level with the same period a year ago (increase of 4% excluding exchange rate effects and divestments) and amounted to SEK 39,763m (39,646)
Operating profit excluding items affecting comparability rose 10% (12% excluding exchange rate effects and divestments) to SEK 3,939m (3,577)
Items affecting comparability, restructuring costs, etc., amounted to SEK 410m (0)
Earnings per share were SEK 3.58 (3.85)
Cash flow from current operations was SEK 3,067m (1,739)
Table can be viewed in pdf: http://mb.cision.com/Main/600/9285908/31752.pdf
Including today's completion of the acquisition of Georgia-Pacific's European tissue operations, five significant deals were closed during the last quarter. The acquisition of Georgia-Pacific's European tissue operations will strengthen our product offering as well as our geographic presence in Europe. Substantial synergies will also be generated. Through the acquisition of Everbeauty and an increased shareholding in Vinda, we have a good position to continue to expand in China, Taiwan and Southeast Asia. The acquisition of the remaining 50% shares in Pisa in Chile strengthens our expansion opportunities in Latin America. As per the end of June, SCA's packaging business has been sold, excluding the two kraftliner mills in Sweden, to the British company DS Smith. The divestment has enabled expansion and creates opportunities for continued growth in the hygiene operations.
The hygiene operations performed well, with favourable growth and a strong earnings improvement. The Group's growth in net sales during the first half of 2012, excluding exchange rate effects and divestments, was 4%. The sales increase continued to be high in emerging markets, where Personal Care and Tissue increased sales by 21% and 16%, respectively. The Group's operating cash flow increased to SEK 4,169m (2,898). The improvement is mainly attributable to a lower level of tied up working capital, but also to a higher operating surplus and lower capital expenditures.
Operating profit for the second quarter of 2012, excluding exchange rate effects, divestments and items affecting comparability increased by 16% compared with the same period a year ago and amounted to SEK 2,105m. Profit for Personal Care and Tissue rose 34% and 53%, respectively. Profit for Forest Products fell 34%.
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 19 July 2012, at 12.00 CET.
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