|
Operating profit at the world's second-biggest maker of consumer
tissue fell 34% from a year earlier to 2.75 billion Swedish
crowns ($297 million) despite an 11% rise in sales. Five
analysts polled by Refinitiv had on average forecast a 3.33
billion crown profit.
The Swedish group, which sells consumer tissue such as toilet
paper and napkins under a large number of brands including
Lotus, Tempo and Vinda, announced plans to raise prices in all
product categories and markets this year to compensate for the
substantially higher costs.
"We do not expect a decrease in the historically high costs for
raw material, energy and distribution in the near term," Chief
Executive Officer Magnus Groth said in a statement.
"Price increases are therefore essential."
The timing and size of the planned price increases would be
managed locally, according to the company, which is also the
global leader in hygiene products for businesses with the Tork
brand and in incontinence products with TENA.
Its shares were down 3% in morning trade.
Groth told analysts and journalists in a conference call he
expected most raw material costs to start to stabilizing in the
current quarter, while energy would keep rising significantly
compared with the fourth quarter.
Essity, a rival to Procter & Gamble and Kimberly-Clark, proposed
a dividend of 7 crowns per share for 2021, up 4% from the year
before.
Kimberly-Clark is due to report earnings later on Wednesday.
($1 = 9.2543 Swedish crowns)
(Reporting by Anna Ringstrom; Editing by Subhranshu Sahu and
Carmel Crimmins)
[© 2022 Thomson Reuters. All rights
reserved.]
Copyright 2022 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
