Asaleo Care Delivers on Expectations in 1H FY2019

Asaleo Care has announced its half year results for 2019 with an underlying earnings before interest, tax, depreciation and amortization (EBITDA)of $39.4 million from continuing operations and a statutory net profit after tax of $7.3m.

CEO and managing director, Sid Takla said: “The company’s financial performance for the first half was in line with expectations, and we successfully completed the sale of the Consumer Tissue Australia business. Sale proceeds were largely used to pay down debt to deliver a strong and healthy balance sheet, which will enable us to invest in our higher margin, higher growth brands.

“Our strategy to drive growth is now clearly focused on becoming the leader in personal care and hygiene in Australasia, by investing in our brands and putting the needs of our customers and consumers first.

“This week, we launched our latest Libra marketing campaign, Blood Normal, which aims to breakdown taboos, reduce the stigma and shame around periods, and encourage discussion. The TENA Discreet campaign was initiated in the first half with more marketing activity planned for the second half.

“Our major shareholder, Sweden’s Essity, reaffirmed its long-term commitment to the Company with a new agreement being signed extending the Trade Mark and Technology License Agreement out to 2027. This will provide continued access to world-leading innovation, research and technology, marketing materials and a pipeline of new product development for our Tork, TENA and Libra brands.”

Robert Sjostromhas has resigned as a director of the company following an internal promotion. Essity’s Marie-Laure Mahé (commercial director France and Belgium consumer goods) has been appointed a director of the company.

Takla added, “Our major capital investment to upgrade the Kawerau, New Zealand, manufacturing facility remains on track for completion next month and will deliver substantial operating efficiencies by the start of 2020. The outlook for the remainder of FY19 remains unchanged, with continuing operations underlying EBITDA forecast to be in the range of $80 -$85 million. We expect to see some benefits of continued easing in pulp prices, partially offset by the weaker Australian dollar. No interim dividend was declared.

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