Toilet paper maker warns profit plunge
Asaleo Care said unaudited net profit for the six months to June 30 is down 23 per cent from a year earlier to $24.9 million,.
Sales of tissues, toilet paper and personal hygiene products have dropped because of discounting by competitors and higher spending to support its market share, the company said.
The compay said the cost of pulp used in toilet paper manufacturing had also risen.
“Whilst it is disappointing to announce reduced results and outlook for the full year, we continue to believe that the strategy and initiatives which we have implemented and planned will put the company in a strong position going forward,” CEO Peter Diplaris said.
Asaleo Care shares plunged, dropping 63.5 cents, or 29.7 per cent, to $1.505.