Unlike previous years, SCA’s start to 2016 was a bit disappointing. Even though profitability was marginally ahead of consensus estimates, thetop-line was weak as currency benefits retreated (resulting in a 4% negative impact), organic growth reduced to 3% – the lowest since Q4 14 and forest products’ price/mix weakened (-5%). Q1 sales were SEK28.2bn (+0.8% yoy; -3% qoq) and adjusted EBIT came in at SEK3.2bn (+13% yoy but down 5.4% qoq). While Forest Products’ EBIT wea
03 May 2016
Early signs of waning organic growth
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Early signs of waning organic growth
Svenska Cellulosa AB SCA Class B (SCA:STU) | 0 0 0.5% | Mkt Cap: 55,579m
- Published:
03 May 2016 -
Author:
Varun Sikka -
Pages:
3
Unlike previous years, SCA’s start to 2016 was a bit disappointing. Even though profitability was marginally ahead of consensus estimates, thetop-line was weak as currency benefits retreated (resulting in a 4% negative impact), organic growth reduced to 3% – the lowest since Q4 14 and forest products’ price/mix weakened (-5%). Q1 sales were SEK28.2bn (+0.8% yoy; -3% qoq) and adjusted EBIT came in at SEK3.2bn (+13% yoy but down 5.4% qoq). While Forest Products’ EBIT wea