Essity has released its iterim report Q3 2017. The Group's net sales for the third quarter of 2017 increased 7.7% compared with the corresponding period a year ago. Organic sales increased by 1.8%, of which volume accounted for 2.2% and price/mix for -0.4%. In emerging markets, which represented 34% of net sales, organic sales rose by 6.8%, while in mature markets organic sales declined by 0.8%. Organic sales were negatively impacted by a lower market growth due to such factors as price pressure and as a consequence of Essity's decision to discontinue certain underperforming market positions and contracts as part of the company's focus on profitable growth for increased value creation. During the quarter, 13 innovations were launched that strengthened Essity's customer and consumer offering in all categories.
The Group's adjusted EBITA in the third quarter of 2017 increased by 10% compared with the corresponding period a year ago. Excluding currency translation effects and the acquisition of BSN medical, the adjusted EBITA declined by 1% compared with the corresponding period a year ago. The decline was mainly the result of higher raw material costs and lower prices. Higher volumes, cost savings and other measures to improve profitability had a positive impact on earnings.
The Group's adjusted EBITA margin increased 0.3 percentage points to 12.6%. The adjusted return on capital employed was 13.8%.
For the third quarter of 2017, the acquired company BSN medical's organic sales rose by 1.7%. The adjusted EBITA margin for the acquired company was 19.2% and was negatively impacted by approximately 0.4 percentage points as a result of integration costs.
