JANUARY 1 – JUNE 30, 2019
(compared with the corresponding period a year ago)
- Net sales increased 8.6% to SEK 62,724m (57,741)
- Organic net sales increased 4.1%
- Organic net sales increased 4.7%, excluding the lower sales of mother reels due to production closures
- In emerging markets, which accounted for 37% of net sales, organic net sales increased 9.6%
- Operating profit before amortization of acquisition-related intangible assets (EBITA) increased 5% to SEK 6,412m (6,080)
- Adjusted EBITA increased 7% to SEK 6,922m (6,468)
- Adjusted EBITA margin was 11.0% (11.2)
- Higher raw material and energy costs had a negative impact of SEK 1,300m on earnings
- Profit for the period increased 15% to SEK 4,430m (3,857)
- Earnings per share increased 15% to SEK 5.73 (4.98)
- Adjusted earnings per share increased 16% to SEK 6.60 (5.68)
- Cash flow from current operations increased to SEK 5,336m (1,855)
SUMMARY OF THE SECOND QUARTER OF 2019
During the quarter the Group continued to report strong organic net sales growth and the adjusted EBITA margin rose. The implemented price increases had a positive impact on both organic net sales growth and profitability.
Our investments in sales and marketing, primarily in Asia and Latin America, contributed to higher growth. In addition, we launched innovations that strengthened our customer and consumer offering and improved the product mix. For example, in China we re-launched Feminine Care with Libresse V-Comfort and invested in local production. In Incontinence Products, we strengthened our product offering in the healthcare sector with TENA ProSkin.
Efficiency efforts are according to plan and we have achieved significant cost savings. Our raw material and energy costs were higher during the quarter, although the market prices for such items as pulp are demonstrating a declining trend, albeit from a high level.