2018 at a glance
Hundreds of millions of people use Essity’s products and services every day and Essity educated approximately 2.5 million people in hygiene and health in 2018.
- Successful innovations
In all product categories innovations were launched that strengthened Essity’s customer and consumer offering.
- Essity industry leader in Dow Jones Sustainability Index
Essity qualified for inclusion in the Dow Jones Sustainability World Index and the Dow Jones Sustainability Europe Index, and was named industry leader in the Household Products sector.
- Restructuring measures in tissue production
To further improve cost and capital efficiency in Consumer Tissue and Professional Hygiene, decisions were taken on restructuring measures in tissue production in Europe, North America and Latin America.
- Group-wide cost-savings program
To improve profitability and strengthen long-term cost efficiency, a Group-wide cost-savings program was introduced. The program is expected to generate annual cost savings of approximately SEK 900m, with full effect at the end of 2019.
- New organization
To strengthen competitiveness and increase efficiency, changes were made to the organizational structure and Executive Management Team.
2018 compared with 2017
- Organic net sales, which exclude exchange rate effects, acquisitions and divestments, increased 2.6%, of which volume accounted for 0.5% and price/mix for 2.1%. Organic net sales increased 0.9% in mature markets and increased 5.9% in emerging markets. Emerging markets accounted for 35% of net sales.
- Adjusted operating profit before amortization of acquisition-related intangible assets (adjusted EBITA) declined 4% (11% excluding currency translation effects and acquisitions) to SEK 12,935m (13,405). Higher prices, better mix, higher volumes, cost savings and the acquisition of BSN medical had a positive impact on earnings.