Annual Report 2016
SCA’s vision is “Dedicated to improving well-being through leading hygiene and health solutions”
Dedicated to improving well-being through
leading hygiene and health solutions
To sustainably develop, produce, market and sell value-added hygiene and forest products and services
NET SALES 2016
ADJUSTED OPERATING PROFIT 2016
Excluding items affecting comparability
SALES IN APPROXIMATELY
As of December 31, 2016
Two strong businesses with attractive offerings
– exciting future for the hygiene and the forest products businesses
2016 was an eventful year for SCA. We initiated work in order to be able to propose to the 2017 Annual General Meeting to decide on a split of the SCA Group into two listed companies: a hygiene company and a forest products company. During the year, we enhanced our strategy and created a new vision. The acquisition of Wausau Paper Corp., a leading North American AfH tissue company, was completed and was integrated successfully. We strengthened our cooperation with Vinda to build a leading Asian hygiene business. Toward the end of the year, we entered into an agreement to acquire the medical solutions company BSN medical. The acquisition of BSN medical is an excellent strategic fit for SCA and supports our vision “Dedicated to improving well-being through leading hygiene and health solutions”. Through successful innovation work, we improved our customer and consumer offerings and strengthened our market positions in many product segments. We also continued to increase the efficiency of the value chain and address underperforming market positions.
President and CEO
The year at a glance
Net sales117,314 SEKm
Adjusted operating profit1)13,989 SEKm
Cash flow from current operations10,382SEKm
Organic sales+2 %
Adjusted operating margin1)11.9 %
Earnings per share7.93 SEK
1) Excluding items affecting comparability.
Net sales by region 2016
SCA’s vision has been broken down into four measurable objectives and strategies with clear connections to stakeholder groups such as shareholders, customers and consumers, society and employees:
VisionDedicated to improving well-being through leading hygiene and health solutions
MissionTo sustainably develop, produce, market and sell value-added hygiene and forest products and services
SCA’s business areas
SCA is a global leader in personal care. The company develops, produces, markets and sells incontinence products, baby diapers and feminine care products. Within these product segments, SCA also offers such products as wet wipes, soap, lotion, baby oil and cotton pads. The products are sold under SCA’s global and regional brands, such as Libero, Libresse, Nosotras, Saba and TENA, as well as under retailers’ brands. Distribution channels for the products are the retail trade, online sales, pharmacies and care institutions.read more
SCA is a global leader in tissue. The company develops, produces, markets and sells consumer tissue and Away-from-Home (AfH) tissue. The consumer tissue product portfolio comprises toilet paper, household towels, handkerchiefs, facial tissues, wet wipes and napkins. In the consumer tissue segment, products are sold to retailers under SCA’s own brands, such as Lotus, Regio, Tempo and Zewa, as well as under retailers’ brands. In the AfH tissue segment, SCA develops and sells complete hygiene solutions, including toilet paper, paper towels, napkins, hand soap, hand lotion, hand sanitizers, dispensers, cleaning and wiping products, sensor technology, service and maintenance for institutions and companies, under the globally leading brand Tork. Distribution channels for the products are the retail trade, online sales and distributors.read more
SCA is Europe’s largest private forest owner, with 2.6 million hectares of environmentally certified forest land, and produces forest products with a strong environmental profile. SCA’s forest asset is a unique growing resource that represents the core of the business area’s operations and enables the supply of wood raw materials and energy at a competitive cost to the company’s forest products operations. The company has a well-integrated value chain with production facilities close to its forest holdings. SCA develops, produces, markets and sells solid-wood products, pulp, kraftliner, publication papers, pellets and other biofuels as well as district heating and green electricity.read more
Hygiene Matters – an initiative to promote a global dialog concerning hygiene, health and well-being
Poor hygiene and sanitation constitute a barrier for the health, well-being, livelihood and development of millions of people. SCA has gathered insights and ignited the conversation around the role and importance of hygiene over a period of many years and via its Hygiene Matters initiative since 2008. Through the Hygiene Matters initiative, SCA wants to increase awareness of the importance of hygiene and its link to health and well-being and break the taboos surrounding issues such as menstruation and hygiene. SCA is contributing to raise hygiene standards worldwide through its business model and hygiene solutions.
Two integral aspects of the Hygiene Matters initiative are a global consumer survey and the Hygiene Matters report. The 2016/2017 report looked at the economic value of investing in hygiene, taboos and stigma surrounding menstruation and incontinence, as well as innovative solutions for the future. For the first time, the report was produced in collaboration with the WSSCC (Water Supply and Sanitation Collaborative Council). The WSSCC is the only UN body that works solely with sanitation and hygiene issues.