Operations in 2017
Net sales
Adjusted EBITA margin1)
Organic sales
Adjusted return on capital employed1)
Adjusted EBITA1)
1) Excluding items affecting comparability
Net sales increased 2.6% to SEK 26,700m (26,001). Organic sales, which exclude exchange rate effects, acquisitions and divestments, increased 1.5%, of which volume accounted for –0.7% and price/mix for 2.2%. Price/mix was positively impacted by higher prices in North America and a better mix in Europe and North America. The acquisition of Wausau Paper Corp. increased net sales by 0.6%. Organic sales decreased 0.5% in mature markets due to lower volumes. These lower volumes are mainly the result of the decision to discontinue contracts with unsatisfactory profitability. In emerging markets, which accounted for 18% of net sales, organic sales increased by 12.4%. The increase was mainly related to Asia, Latin America and Eastern Europe. Exchange rate effects increased net sales by 0.5%.
Adjusted operating profit before amortization of acquisition-related intangible assets (EBITA)1) rose 4% (3% excluding currency translation effects and acquisition) to SEK 4,004m (3,836). Better price/mix, cost savings and the acquisition of Wausau Paper Corp. had a positive impact on earnings. Higher raw material costs mainly due to a significant increase in recovered paper prices and lower volumes had a negative impact on earnings.
Adjusted EBITA margin1) was 15.0% (14.8).
Adjusted return on capital employed1) was 19.7% (19.6%).
Operating cash surplus amounted to SEK 5,649m (5,515).
Operating cash flow amounted to SEK 4,411m (4,135).
Capital expenditures amounted to SEK 888m (1,455).
1) Excluding items affecting comparability
SEKm |
2017 |
2016 |
||
|
||||
Net sales |
26,700 |
26,001 |
||
Operating cash surplus |
5,649 |
5,515 |
||
Change in working capital |
73 |
–30 |
||
Current capital expenditures, net |
–719 |
–1,267 |
||
Other operating cash flow |
–592 |
–83 |
||
Operating cash flow |
4,411 |
4,135 |
||
Adjusted EBITA1) |
4,004 |
3,836 |
||
Adjusted EBITA margin1), % |
15.0 |
14.8 |
||
Capital employed |
20,034 |
21,253 |
||
Adjusted return on capital employed1), % |
19.7 |
19.6 |
||
Strategic capital expenditures |
|
|
||
plant and equipment |
–169 |
–188 |
||
company acquisitions/divestments |
1 |
–6,395 |
||
Average number of employees |
7,900 |
8,032 |
||
No. of employees at Dec. 31 |
7,767 |
7,993 |
||
Emerging markets accounted for
of the business area’s net sales in 2017. In emerging markets, organic sales increased by 12.4% for 2017.
Net sales and adjusted EBITA margin1)
1) Excluding items affecting comparability.
Adjusted EBITA1) and adjusted return on capital employed1)
1) Excluding items affecting comparability.
Net sales by region
