Asaleo Care Limited reported preliminary earnings results for the first six months ended June 30, 2018. For the period, the company reported revenue was $267.2 million compared to $294.2 million a year ago. EBITDA (underlying) was $46.3 million compared to $60.9 million a year ago. The decline in first half of 2018 Financial Results compared to first half of 2017 is largely due to the following factors: Significantly higher pulp and electricity costs of approximately $10 million. Lower sales volume in the Consumer Tissue business. Asaleo Care proceeded with a price increase to recoup part of the cost increases. During protracted negotiations with customers, promotions were reduced and in some cases cancelled, and significant volume was lost. These negotiations have now largely concluded with promotions resumed and price increases achieved in many cases. Increased trade spend to support market share as a result of continued heavy discounting by competitors. Lower sales in the Baby Care business. Ongoing investment in product quality improvements for the longer term. Lease cost on Springvale property in first half of 2018 as a result of the sale and lease back in June 2017. Net debt at 30 June 2018 was $309.7 million ($279.1 million at 31 December 2017).

The company revised earnings guidance for the year 2018. The company revised Underlying EBITDA range from $113 million to $119 million to a range of $80 million to $85 million. Primary drivers for change to fiscal year 2018 Guidance is Sustained higher pulp costs; Consumer Tissue pricing and lower sales volume; Competition in Feminine Care and Baby Care markets; and Professional Hygiene and Incontinence Care are performing in line with previous expectations. The company expects new product development initiatives to support market share in fiscal year 2018 and beyond.