Consumer Tissue
Lotus Moltonel Sans Tube/Zewa Smart
Our first coreless toilet paper: no empty core to be discarded and thus less waste, and because it holds more paper it lasts longer.
Essity is the world’s second largest supplier of consumer tissue
Offering
Essity’s offering includes toilet paper, household towels, handkerchiefs, facial tissues, wet wipes and napkins. Products are sold under brands such as Edet, Lotus, Regio, Tempo, Vinda and Zewa. In Europe, Essity also sells products under retailer brands. Products sold under Essity’s own brands account for about 66% of net sales, while the remaining 34% are sold under retailer brands.
Distribution channels are the retail trade and online sales.
Market positions
Essity is the world’s second largest supplier of consumer tissue. Essity’s brand portfolio comprises many strong brands.
In Europe, Essity is the market leader and holds a market share that is approximately twice the size of the second largest player. Lotus, Tempo and Zewa are the leading brands in, for example, France, Germany and Russia, while Cushelle, Velvet and Plenty are strong brands in the UK and Ireland, and Edet in the Nordic region and the Netherlands.
Essity is the market leader in China through its majority shareholding in Vinda. Vinda is the leading brand in China.
In Latin America, Essity is the market leader in Colombia and holds the number two position in Mexico. Familia and Regio are leading brands in Colombia and Mexico respectively.
Production facilities
At the end of 2018, Consumer Tissue had production at 47 sites in 19 countries.
Operations in 2018
Net sales increased 7.4% to SEK 45,125m (42,014). Organic net sales, which exclude exchange rate effects, acquisitions and divestments, increased 2.6%, of which volume accounted for –1.1% and price/mix for 3.7%. The increase was mainly attributable to Asia and Europe. Organic net sales increased 0.7% in mature markets. In emerging markets, which accounted for 44% of net sales, organic net sales increased by 5.0%. Acquisitions relating to the increase in the shareholding in associates in Latin America increased net sales by 0.5%. Exchange rate effects increased net sales by 4.3%.
Adjusted operating profit before amortization of acquisition-related intangible assets (adjusted EBITA) decreased 18% (22% excluding currency translation effects and acquisitions) to SEK 3,331m (4,084). Higher prices and a better mix as well as cost savings positively impacted earnings. Higher raw material and energy costs as well as higher distribution costs negatively impacted earnings. The significantly higher raw material costs were mainly the result of higher pulp prices.
SEKm |
2018 |
2017 |
% |
||||
|
|||||||
Net sales |
45,125 |
42,014 |
7% |
||||
Organic net sales1), % |
+2.6% |
+0.5% |
|
||||
Adjusted EBITA2) |
3,331 |
4,084 |
–18% |
||||
Adjusted EBITA margin2), % |
7.4 |
9.7 |
|
||||
Adjusted return on capital employed2), % |
7.4 |
9.8 |
|
||||
Operating cash flow |
3,691 |
3,850 |
–4% |
||||
Investments in non-current assets |
–3,074 |
–2,889 |
|
||||
Average number of employees |
21,235 |
21,397 |
|
||||
Net sales by region
For Consumer Tissue, 34% of total net sales was related to retailer brands.
Emerging markets accounted for
of the business area’s net sales in 2018. In emerging markets, organic net sales increased by 5.0% in 2018.
Net sales
Organic net sales1)
Adjusted EBITA2)
Adjusted EBITA margin2)
Adjusted return on capital employed2)
1) Excluding exchange rate effects, acquisitions and divestments.
2) Excluding items affecting comparability.
Net sales and organic net sales1)
1) Excluding exchange rate effects, acquisitions and divestments.
2) Excluding items affecting comparability.
2) Excluding items affecting comparability.