Comments to the multi-year summary
In 2008, sales increased 4%. SCA’s European packaging operations were reclassified to Disposal group held for sale with retroactive adjustment from 2010. Sales declined 24% in 2010 mainly due to the reclassification of the European packaging operations, but also to negative exchange rate effects and the divestment of the Asian packaging operations. A number of strategic acquisitions and divestments were carried out in 2012, including the acquisition of Georgia-Pacific’s European tissue operations and the divestment of SCA’s European packaging operations. Net sales for 2012 rose 5%. In 2013, SCA divested its publication paper mill in Laakirchen, Austria, as well as the areas of Georgia-Pacific’s European tissue operations which the European Commission ordered SCA to divest in conjunction with the acquisition in 2012. Net sales increased 4%. The Chinese tissue company Vinda was consolidated as of 2014, with retroactive effect for 2012 and 2013. Net sales rose 12% in 2014. In 2015, net sales increased 11%, of which organic sales growth accounted for 5%. In 2016, the North American tissue company Wausau Paper Corp. was acquired and net sales rose 2%, of which organic growth accounted for 2%.
Earnings for Personal Care were stable in 2008 to subsequently increase 11% in 2009. Profit declined in 2010. Operating profit for 2011 declined 5% excluding exchange rate effects compared with the preceding year. Higher volumes, prices and cost savings did not offset higher costs for raw materials. In 2012, operating profit rose 20% compared with the preceding year. The earnings improvement was attributable to higher volumes and prices, an improved product mix, lower raw material costs and cost savings. In 2013, profit increased 1%. Earnings were impacted positively by higher volumes, cost savings and acquisitions. Investments in increased market activity resulted in higher volumes, but impacted earnings, particularly in the area of baby diapers. Increased raw material costs and negative exchange rate effects had an adverse impact on profit. Operating profit for 2014 was in line with the preceding year. Higher volumes, an improved price/mix and cost savings had a positive impact on earnings, while higher raw material costs and investments in market activity had an adverse impact on earnings. In 2015, operating profit increased 13%, with higher volumes and an improved price/mix offsetting higher raw material costs and increased investments in market activities. In 2016, profit increased 7%, due primarily to higher volumes and a better price/mix. Negative exchange rate effects from the GBP and the MXN negatively impacted earnings.
In 2010, profit declined for Tissue compared with the preceding year, due to a sharp increase in costs for raw materials. Operating profit for 2011 increased 4% compared with the preceding year. In 2012, operating profit rose 47%. Higher prices, an improved product mix, increased volumes, acquisitions, lower raw material costs and cost savings contributed to the improvement in earnings. Earnings for 2013 increased 21% compared with the preceding year. The improvement in earnings was due to acquisitions, increased volumes and cost savings. In 2014, operating profit rose 16% as a result of higher volumes, an improved price/mix, cost savings and the acquisition of the Chinese company Vinda. In 2015, operating profit rose 8%. Higher volumes, an improved price/mix and cost savings compensated for the higher costs for raw materials, which were primarily the result of the stronger USD. Profit for 2016 increased 13 percent due to an improved price/mix, higher volumes, cost savings, lower raw material and energy costs and the acquisition of Wausau Paper Corp.
Operating profit for Packaging declined in 2008 due to the financial crisis and the ensuing recession. The recession continued in 2009 and the result from Packaging declined 72%. The Asian packaging operations were divested in 2010. In 2012, the European packaging operations were divested and reclassified to Disposal group held for sale with retroactive adjustment from 2010.
In 2008, profit for Forest Products declined due to increased energy and raw material costs. In 2009, profit improved, primarily for publication papers, an area in which higher prices, lower raw material costs and efficiency enhancements made a positive contribution. Profit increased 16% in 2010 due to productivity improvements and implemented price increases in pulp and solid-wood products. Profit declined in 2011, primarily as a result of higher costs for raw materials and negative exchange rate effects. In 2012, operating profit declined, mainly due to lower prices and negative exchange rate effects due to the stronger SEK. The Austrian publication paper mill in Laakirchen was divested in 2013. Profit increased 35% due to cost savings, lower raw material costs and profit from forest swaps. In 2014, profit rose 36% as a result of higher prices (including exchange rate effects), increased volumes, lower energy costs and cost savings. In 2015, profit increased 4%, or 17% excluding profit from forest swaps. Profit for 2016 declined 15%, mainly due to lower prices for solid-wood products, pulp and kraftliner.
Cash flow statement
A total of SEK 60bn has been invested in expansion during the reported ten-year period, of which SEK 35bn is attributable to company acquisitions. Maintenance investments amounted to SEK 41bn and have remained at a steady level of about 4% in relation to sales.
During the reporting period, the Group’s dividend rose from SEK 4.40 to the proposed SEK 6.00, corresponding to an average annual increase of approximately 4.1%. The proposed dividend of SEK 6.00 per share corresponds to an increase of 4.3% compared with the preceding year.