Asaleo Care Limited (ASX:AHY)
has released preliminary half year results for FY16, pointing to a drop in revenue and net profit compared to the previous period.
The decline in results is due to lower sales revenue from discounting measures, higher pulp costs due to a weaker AU and NZ dollar and one off costs implementing a new pricing strategy.
The preliminary results represent a decline of around 15 percent on Net Profit After Tax on guidance previously provided to investors earlier in the year.
An increase in competition has also been cited by the company as a driver behind the reduced results and outlook.
Asaleo Care Limited reported a net profit of $75.6 million at 31 December 2015.