Strategic priorities for profitable and sustainable growth

To deliver on Essity’s strategic priorities and achieve profitable and sustainable growth, Essity is endeavoring to attract and develop the most talented employees and create a culture where people thrive and continuously evolve. The right expertise and good opportunities for development and cooperation form the basis for Essity’s success and value creation. We value and work to increase diversity, equity and inclusion. Different backgrounds and experiences lead to successful solutions and results. All employees are to be treated fairly and with respect. Everyone at Essity makes a difference by helping to improve the well-being of people all over the world.

Daily improvements are achieved at Essity by focusing on efficiency and quality, which yields greater customer satisfaction, improved profitability and lower climate impact. We strive to increase productivity, reduce material, energy and logistics costs and minimize waste. In parallel, rapid adjustments are enabled for innovations, product adaptations and the best service to customers and consumers. This strengthens the company’s competitiveness, enhances financial performance and reduces environmental impact. Digitalization, innovation, global economies of scale and knowledge sharing contribute to increasing efficiency in the production and supply chain as well as logistics and distribution. During 2021, Essity achieved SEK 698m in continuous cost savings. These include savings in sourcing, production and material rationalization. The Manufacturing Roadmap program extends until 2025 and is expected to contribute to Essity’s total annual cost savings of SEK 500–1,000m through optimized production structure, efficiency improvements and raw material and energy savings. These measures facilitate growth without investments increasing at the same pace. Working capital is expected to decrease by more than SEK 1,000m. The objective is to also utilize new production methods to reduce exposure to wood-based fresh-fiber pulp by approximately 10%, which will result in reduced volatility for the company’s profitability.