Aaron Bunch Journalist with Australian Associated Press | Collection of published work | + 61 484 008 119 | abunch@aap.com.au
Toilet paper maker issues profit warning
Asaleo Care, the company behind the Sorbent and Libra brands, says it expects a fall in net profit in 2017.
December 12, 2017
Shares in the company behind the Sorbent and Libra brands have fallen after it warned of a drop in full year profit.
Asaleo Care said it expects to make a net profit of between $57 million and $58 million for the year to December 31, down from a $59 million profit in 2016.
Sales of its feminine care products have fallen due to increasingly aggressive pricing tactics from competitors, the company said.
The company has been locked into fixed pricing arrangements with some large supermarket and pharmacy chains, and was unable to respond to its rivals, a spokeswoman told AAP.
Asaleo Care also downgraded its forecast for underlying profit, from growth in the low single digits to a fall of between seven and eight per cent.
Its shares were down 8.75 cents, or 5.5 per cent, at $1.5025 at 1520 AEDT.
The company said it exited its fixed pricing arrangements at the end of October and is now able to competitively price the Libra brand.
“With increased price flexibility and based on November sales, management is confident that the Libra Feminine Care brand will return to growth,” it said in a statement.