Fourth Quarter 2016, relative to Fourth Quarter 2015: Net sales decreased $4.2 million, or 10%, primarily due to heavy promotional activity by brand-competitors and other competitive pressures. Parent roll sales increased by $0.7 million while converted product sales decreased by $4.9 million. Of the $4.9 million decrease, $3.7 million was attributable to the decreased number of tons sold, and $1.2 million was due to a decline in the average price per ton that principally reflects the mix of customers buying the products. Cost of sales, exclusive of depreciation, decreased $2.1 million, or 7%. The decrease in sales volumes, contributed to the relative decrease in Cost of sales, as did spreading fixed overhead over a lower volume and approximately $0.6 million in additional costs for our Mexicali operations, which reflected increased costs for fiber, electricity, and overhead that were only partially offset by favorable foreign exchange impacts upon peso-denominated costs. click Read More below for additional detail
Vinda International Holdings Limited (3331.HK) dispatched a circular today in relation to the proposed acquisition of SCA’s hygiene business in South East Asia, Taiwan and South Korea.
SCA has a leading position in a number of Asian personal care markets. In incontinence care, it is the market leader in Taiwan2. In baby diapers, it is No.1 in Malaysia3 and No.2 in Singapore2. In feminine hygiene, it is No.2 in Malaysia3.
Net sales and adjusted EBITDA of the business to be acquired was HK$2.6 billion and HK$249 million respectively trailing 12 months ended 30 September 2015.
Mr. Christoph Michalski, CEO of Vinda, said, “Vinda aims to become a leading hygiene company not only in China but also in Asia. As SCA is a leading personal care player in Asia, this acquisition will enable us to gain immediate access to a Pan-Asian distribution network for tissue and other personal care products.
“This acquisition will also enable us to optimize our cost efficiency with an enlarged scale of operation.”
The debt free4 consideration of the acquisition is HK$2.8 billion. The acquisition is subject to shareholders’ approval at an extraordinary general meeting to be held on 13 January 2016.
more at: http://www.paperage.com/2015news/12_28_2015vinda_sca_hygiene_business_asia.html