Operations in 2016


Net sales

SEK 67,561m

Adjusted operating profit1)

SEK 8,155m

Adjusted operating margin1)

12.1%


Net sales increased by 5% to SEK 67,561m (64,184). Organic sales, which exclude exchange rate effects, acquisitions and divestments, increased by 3%, of which price/mix accounted for 1% and volume for 2%. The acquisition of Wausau Paper Corp. increased net sales by 5%. Organic sales decreased by 1% in mature markets and increased by 10% in emerging markets. Emerging markets accounted for 32% of net sales. Exchange rate effects decreased net sales by 3%.

For consumer tissue, organic sales increased by 3%. Growth is related to high growth in emerging markets, particularly China, Latin America and Russia. For AfH tissue, organic sales increased by 3%. The increase was related to Western Europe and emerging markets.

The adjusted operating profit1) rose 13% (12% excluding currency translation effects and acquisitions) to SEK 8,155m (7,217). A better price/mix, higher volumes, cost savings, lower raw material and energy costs, and acquisitions contributed to the earnings increase. The acquisition of Wausau Paper Corp. increased operating profit by 4%. Selling costs were higher, and investments were made in increased marketing activities. The British pound and Mexican peso have weakened against several trading currencies, which had a negative earnings effect.

The adjusted operating margin1) amounted to 12.1% (11.2).

The adjusted return on capital employed1) was 13.5% (12.9).

The operating cash surplus amounted to SEK 11,970m (10,703). Operating cash flow amounted to SEK 9,334m (7,667).

Capital expenditures amounted to SEK 4,101m (3,536).

Targets

  • Annual organic sales growth of 3–4%
  • Return on capital employed of 15% over a business cycle

Outcome 2016

Organic sales

+3%

Adjusted return on capital employed1)

13.5%

1) Excluding items affecting comparability.

Net sales by product segment

Tissue – Net sales by product segment (pie chart)Tissue – Net sales by product segment (pie chart)

SCA’s sales to retailers’ brands as a proportion of total consumer tissue sales was 36%.

Net sales by region

Tissue – Net sales by region (pie chart)Tissue – Net sales by region (pie chart)
Key figures

SEKm

2016

2015

1)

Excluding items affecting comparability.

Net sales

67,561

64,184

Operating cash surplus

11,970

10,703

Change in working capital

861

–285

Current capital expenditures, net

–3,159

–2,260

Other operating cash flow

–338

–491

Operating cash flow

9,334

7,667

Adjusted operating profit 1)

8,155

7,217

Adjusted operating margin, % 1)

12.1

11.2

Capital employed

61,335

55,053

Adjusted return on capital employed, % 1)

13.5

12.9

Strategic capital expenditures

 

 

plant and equipment

–942

–1,276

company acquisitions/divestments

–6,395

0

Average number of employees

28,742

27,210

No. of employees at Dec. 31

29,192

27,024

Emerging markets accounted for

Tissue – Emerging markets accounted for (map)Tissue – Emerging markets accounted for (map)

of the business area’s net sales in 2016. In emerging markets, organic sales increased by 10% in 2016.

Net sales and adjusted operating margin1)
 

Tissue – Net sales and adjusted operating margin (bar and line chart)Tissue – Net sales and adjusted operating margin (bar and line chart)

1) Excluding items affecting comparability.
2012 and 2013 restated in accordance with IFRS 10 and 11.

Adjusted operating profit and adjusted return on capital employed1)

Tissue – Adjusted operating profit and adjusted return on capital employed (bar and line chart)Tissue – Adjusted operating profit and adjusted return on capital employed (bar and line chart)

1) Excluding items affecting comparability.
2012 and 2013 restated in accordance with IFRS 10 and 11.