UPDATE 1-SCA Sweden splits in June with list of hygiene companies
* Prepares the split into two listed companies
* Hygiene ops Q1 adjusted EBIT 2.90 billion SEK vs consensus 2.85 billion
* Forest prods EBIT Q1 498 mln SEK vs consensus 566 mln (add details, track record, analyst comments, actions)
STOCKHOLM, April 27 (Reuters) – SCA will list its hygiene activities in June, the Swedish company said Thursday, as it pursues a plan to separate the business from forest products.
Europe’s largest private forest owner has grown the hygiene sector, which produces tissues and diapers as well as incontinence and feminine care products, to around 85 percent of group sales through restructurings and takeovers.
Shareholders this month approved plans to split SCA into two companies by splitting and listing the hygiene business, which competes with Kimberly-Clark and Procter & Gamble, as Essity.
“The intention is that the first separate trading day at the two companies will be in June 2017,” he said on Thursday.
A Swedish newspaper reported this month that an offer was made for the company in March, sending SCA shares to record highs. The newspaper later said that SCA rejected the offer.
On Thursday, SCA stock was up 2.5% as of 08:47 GMT, bringing an increase to 16% year-to-date.
SCA said Essity’s new goals were annual organic growth of over 3% and adjusted return on capital employed of over 15%.
UBS analyst David Hallden said the new growth target was somewhat modest compared to SCA’s old targets of 2-4% for the old Tissue division and 5-7% for the old one. Personal Care activity.
He said the plan to list Essity in June met his expectations.
Essity, whose brands include Tena, Tork and Libero, achieved first-quarter operating profit before restructuring and other one-time costs of SEK 2.9 billion ($ 331 million), up from 2.71 billion a year ago. one year, because higher volumes, better profitability and cost reductions offset higher raw material and energy costs.
The average forecast in a Reuters survey of analysts was of a profit of 2.85 billion crowns.
Essity generates most of its sales in Europe, but aims to increase its share of sales in emerging markets. During the quarter, organic sales increased 5% in emerging markets, but declined 1% in mature markets.
The market leader in incontinence care products and not. 2 on fabrics said the global hygiene products market was somewhat difficult during the quarter.
In the forest products business of SCA, which will constitute the new SCA, operating profit increased from SEK 533 million to SEK 498 million, against an expected increase to SEK 566 million. ($ 1 = SEK 8.7680) (edited by Niklas Pollard and Alexander Smith)