SCA’s operating performance continued to weaken, with the Q3 16 results coming behind both consensus and AV’s estimates. Sales were flat (both yoy and qoq) at SEK29bn. Organic growth erosion – ‘NIL’ vs. 2% in Q2 16 and 3% in Q1 16 – intensified through 2016. Moreover, the sluggish emerging market’s (31% of sales) organic growth of 4% (vs. 6% in Q2 16 and 9% in Q1 16) was a major disappointment. Hygiene (personal care + tissues), which has been a backb
10 Nov 2016
Weakening (emerging market) growth is unnerving
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Weakening (emerging market) growth is unnerving
Svenska Cellulosa AB SCA Class B (SCA:STU) | 0 0 0.5% | Mkt Cap: 55,579m
- Published:
10 Nov 2016 -
Author:
Varun Sikka -
Pages:
4
SCA’s operating performance continued to weaken, with the Q3 16 results coming behind both consensus and AV’s estimates. Sales were flat (both yoy and qoq) at SEK29bn. Organic growth erosion – ‘NIL’ vs. 2% in Q2 16 and 3% in Q1 16 – intensified through 2016. Moreover, the sluggish emerging market’s (31% of sales) organic growth of 4% (vs. 6% in Q2 16 and 9% in Q1 16) was a major disappointment. Hygiene (personal care + tissues), which has been a backb