Shares in Asaleo Care fell hard after the maker of tissue products including toilet paper announced a profit downgrade, following lower sales and higher costs.
A short time ago they were down 33% to $0.865.
The company, whose brands include Sorbent, Handee, Purex, Libra, Treasures, Deeko, and Viti, today announced preliminary half year results for the six months to June and a reduction in its full year guidance.
Revenue for the half year was down 9% to $267.2 million and underlying EBITDA fell 24% to $46.3 million.
Asaleo says it has been hit by lower sales and significantly higher paper pulp and electricity costs.
The company is also looking at the carrying values of assets, and expects to make impairments and write-downs.
“Whilst it is disappointing to announce reduced results and outlook for the full year, we have made tough decisions for the long term benefit of the company,” says Interim CEO Sid Takla.
“We believe that implementation of initiatives from the strategic review will put the Company in a strong and sustainable position.
“We will also continue to mitigate cost imposts to strengthen our medium to long term results and returns, and are confident that a renewed focus on brand and product development initiatives will enhance our value proposition to consumers.”
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