Operations in 2016
Net sales
SEK 67,561m
Adjusted operating profit1)
SEK 8,155m
Adjusted operating margin1)
12.1%
Net sales increased by 5% to SEK 67,561m (64,184). Organic sales, which exclude exchange rate effects, acquisitions and divestments, increased by 3%, of which price/mix accounted for 1% and volume for 2%. The acquisition of Wausau Paper Corp. increased net sales by 5%. Organic sales decreased by 1% in mature markets and increased by 10% in emerging markets. Emerging markets accounted for 32% of net sales. Exchange rate effects decreased net sales by 3%.
For consumer tissue, organic sales increased by 3%. Growth is related to high growth in emerging markets, particularly China, Latin America and Russia. For AfH tissue, organic sales increased by 3%. The increase was related to Western Europe and emerging markets.
The adjusted operating profit1) rose 13% (12% excluding currency translation effects and acquisitions) to SEK 8,155m (7,217). A better price/mix, higher volumes, cost savings, lower raw material and energy costs, and acquisitions contributed to the earnings increase. The acquisition of Wausau Paper Corp. increased operating profit by 4%. Selling costs were higher, and investments were made in increased marketing activities. The British pound and Mexican peso have weakened against several trading currencies, which had a negative earnings effect.
The adjusted operating margin1) amounted to 12.1% (11.2).
The adjusted return on capital employed1) was 13.5% (12.9).
The operating cash surplus amounted to SEK 11,970m (10,703). Operating cash flow amounted to SEK 9,334m (7,667).
Capital expenditures amounted to SEK 4,101m (3,536).
Targets
- Annual organic sales growth of 3–4%
- Return on capital employed of 15% over a business cycle
Outcome 2016
Organic sales
+3%
Adjusted return on capital employed1)
13.5%
1) Excluding items affecting comparability.
SEKm |
2016 |
2015 |
||
|
||||
Net sales |
67,561 |
64,184 |
||
Operating cash surplus |
11,970 |
10,703 |
||
Change in working capital |
861 |
–285 |
||
Current capital expenditures, net |
–3,159 |
–2,260 |
||
Other operating cash flow |
–338 |
–491 |
||
Operating cash flow |
9,334 |
7,667 |
||
Adjusted operating profit 1) |
8,155 |
7,217 |
||
Adjusted operating margin, % 1) |
12.1 |
11.2 |
||
Capital employed |
61,335 |
55,053 |
||
Adjusted return on capital employed, % 1) |
13.5 |
12.9 |
||
Strategic capital expenditures |
|
|
||
plant and equipment |
–942 |
–1,276 |
||
company acquisitions/divestments |
–6,395 |
0 |
||
Average number of employees |
28,742 |
27,210 |
||
No. of employees at Dec. 31 |
29,192 |
27,024 |
of the business area’s net sales in 2016. In emerging markets, organic sales increased by 10% in 2016.