Net sales declined by 1% (rose by 5% excluding
exchange rate effects) to SEK 24,775m (25,027).
Higher volumes increased sales by 3% and
acquisitions increased sales by 2%. Sales
excluding exchange rate effects increased by
13% in emerging markets.
Sales for incontinence products under the TENA brand rose by 4%, excluding exchange rate effects. Sales for baby diapers increased by 7%, excluding exchange rate effects, primarily attributable the preceding year’s acquisition in Mexico. Sales for feminine care rose by 1%, excluding exchange rate effects, driven by a healthy increase in sales in Latin America.
Several new products were launched during the year including incontinence care products designed as underwear for men and women as well as the TENA Belt, an incontinence care product that provides improved skin comfort for the user.
SCA is the market leader in the Nordic region for baby diapers with the Libero brand. In 2011, SCA increased its range of child care products under the Libero brand. A thinner, more comfortable diaper was launched in the Nordic region and Russia.
In 2011, SCA established operations in two strategically important markets. In Brazil, the acquisition was completed of Pro Descart, the second-largest player in incontinence products. In Turkey, 95% was acquired of San Saglik, the second-largest player in incontinence products and 50% of Komili, the fourth-largest producer of baby diapers and feminine care products.
Operating profit
was 9% lower than in the preceding year (5% excluding exchange rate effects) and amounted to SEK 2,645m (2,922). Profit was positively impacted by increased volumes, prices and cost savings. Profit declined due to negative exchange rate effects and higher costs for raw materials of SEK 628m.
was 10.7% (11.7).
totalled 24% (26).
Operating cash surplus
was SEK 3,745m (4,111). Operating cash flow declined to SEK 2,823m (3,230) as a consequence of a lower operating cash surplus and an increase in current capital expenditures that were partly offset by a lower working capital.
Capital expenditures
amounted to SEK 895m (1,358).