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Essity B 218.5 (+1.7 SEK) on 14-Nov-2018 14:09

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The Professional Hygiene Business Area develops and sells complete hygiene solutions, including toilet paper, paper towels, napkins, hand soap, hand lotion, hand sanitizers, dispensers, cleaning and wiping products, sensor technology, service and maintenance. 

Professional Hygiene generated approximately SEK 26bn in net sales in 2016, which accounted for 26% of Essity’s net sales in 2016. At the end of 2016, Professional Hygiene had production at 36 sites in 18 countries. 23 of the 36 sites also had production of Consumer Tissue. The products are distributed through distributors and service companies.

Essity is the market leader in Europe and holds a market share that is approximately double that of the second largest player. Following the acquisition of Wausau, which was completed in January 2016, Essity is the second largest supplier in North America. Essity’s market position is particularly strong in the food service segment in North America, where Essity estimates that approximately every second napkin is supplied by the Company. Essity holds strong positions in emerging markets, such as, Russia and Colombia, where it is the market leader. The global brand Tork provides significant synergies since differences in customer requirements are minimal in regard to tissue and dispensers in the various parts of the world.

Strategy

Essity is prioritizing activities to strengthen Tork’s global market-leading position through profitable growth, expanding at a faster rate than the market and growing to become a market leader in North America. Essity is focusing on increasing customer satisfaction and loyalty by helping its customers to be more efficient and environmentally friendly and by improving hygiene standards. Great emphasis is put on sustainability. For example, Essity relaunched Tork SmartOne® with a new design and new functions in 2016. Tork SmartOne® is a toilet paper solution designed for use in demanding environments, such as schools, hospitals, stadiums and airports. These public places often have washrooms with high traffic where stringent demands are placed on cost control and good hygiene. Consumption of toilet paper can be reduced by up to 40% compared with traditional jumbo roll dispensers. The single-sheet dispensing system also improves hygiene and reduces the risk for pipe blockages.

In 2016, Essity worked on the integration of Wausau. Essity believes that the acquisition is an excellent strategic fit for Essity and strengthens the Company’s presence and production capacity in North America. The Wausau product portfolio complements Essity’s offerings in North America. 

Net Sales 2016

SEK 26,001m

Organic Sales Growth 2016

+3%

Adjusted EBITA margin 2016

14.8%