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Consumer tissue group Essity Q3 core profit falls more than expected

Published 29/10/2018, 06:26
© Reuters.  Consumer tissue group Essity Q3 core profit falls more than expected
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STOCKHOLM (Reuters) - Hygiene products group Essity (ST:ESSITYb) posted on Monday a bigger slide than expected in third-quarter core profit as accelerating pulp and energy costs outweighed higher selling prices and cost savings.

Operating profit before amortisation and one-off items at the Swedish group, which was spun off from forestry firm SCA (ST:SCAb) in 2017, shrank 12 percent from a year ago to 3.02 billion crowns ($330.7 million).

Analysts' mean forecast in a Reuters poll had been for a 3 percent drop.

Essity had warned in July that raw material costs would be up significantly, and in September launched a new group-wide cost cutting programme.

($1 = 9.1316 Swedish crowns)

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