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 20.6% to SEK 40,586m (33,651). Organic sales, which exclude exchange rate effects, acquisitions and divestments, increased 1.8%, of which volume accounted for 2.2% and price/mix for –0.4%. The closures of the Baby Care business in Mexico and the hygiene business in India negatively impacted organic sales by approximately 1%. Organic sales in mature markets increased by 1.7%. In emerging markets, which accounted for 37% of net sales, organic sales rose 2.0%. The acquisition of BSN medical increased net sales by 18.7%. Exchange rate effects increased net sales by 0.1%.
For Incontinence Products, under the globally leading TENA brand, organic sales increased 2.7%. Growth is related to emerging markets, North America and Western Europe. The European retail sector reported good growth, while lower sales to the healthcare sector had a negative effect on growth. For Baby Care, organic sales decreased 2.5%. The decline was mainly the result of the closures of the Baby Care businesses in Mexico and India, as well as lower sales in Russia. In Europe, organic sales increased for Baby Care. For Feminine Care, organic sales increased by 3.7%, related to Latin America and Asia.
Adjusted operating profit before amortization of acquisition-related intangible assets (EBITA)1) rose 39% (11% excluding currency translation effects and acquisition) to SEK 5,937m (4,283). The increase was mainly related to the acquisition of BSN medical, higher volumes, cost savings, increased profitability for Incontinence Products in North America and the closures of the Baby Care business in Mexico and the hygiene business in India. Higher raw material costs, lower prices and increased investments in marketing activities negatively impacted earnings. The acquisition of BSN medical increased profit by 27%.
Adjusted EBITA margin1) was 14.6% (12.7).
Adjusted return on capital employed1) was 20.5% (31.8%).
Operating cash surplus amounted to SEK 7,238m (5,314).
Operating cash flow totaled SEK 5,453m (4,723).
Capital expenditures amounted to SEK 2,074m (1,896).
1) Excluding items affecting comparability.
SEKm |
2017 |
2016 |
||
|
||||
Net sales |
40,586 |
33,651 |
||
Operating cash surplus |
7,238 |
5,314 |
||
Change in working capital |
–237 |
289 |
||
Current capital expenditures, net |
–1,282 |
–805 |
||
Other operating cash flow |
–266 |
–75 |
||
Operating cash flow |
5,453 |
4,723 |
||
Adjusted EBITA1) |
5,937 |
4,283 |
||
Adjusted EBITA margin1), % |
14.6 |
12.7 |
||
Capital employed |
39,447 |
13,665 |
||
Adjusted return on capital employed1), % |
20.5 |
31.8 |
||
Strategic capital expenditures |
|
|
||
plant and equipment |
–792 |
–1,091 |
||
company acquisitions/divestments |
–26,041 |
197 |
||
Average number of employees |
17,088 |
13,237 |
||
No. of employees at Dec. 31 |
18,370 |
13,156 |
||
Emerging markets accounted for
of the business area’s net sales in 2017. In emerging markets, organic sales increased by 2.0% 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
Net sales by product segment
For Personal Care, 10% of total sales were related to retailers’ brands. For Incontinence Products: 1%, Baby Care: 39%, Feminine Care: 6%, Medical Solutions: 0%.