Professional Hygiene
Tork Reflex® Single Sheet Centrefeed Dispenser
The ideal hand and surface wiping solution for professional environments, designed to fit workplace flow. This easy-to-use, hygienic and durable system increases flexibility and helps users work more efficiently. Single sheet dispensing cuts down on waste by reducing paper consumption by up to 37% when compared to the Tork Centrefeed system.
Essity is the leading global player in professional hygiene
Offering
Essity’s offering comprises complete hygiene solutions, including toilet paper, paper hand towels, napkins, hand soap, hand lotion, hand sanitizers, dispensers, cleaning and wiping products as well as service and maintenance. Essity also offers digital solutions, such as Internet of Things sensor technology.
Customers consist of companies and office buildings, universities, healthcare facilities, industries, restaurants, hotels, stadiums and other public venues. Distribution channels consist of distributors and online sales.
Market positions
Essity is the world’s largest supplier of products and services in the market for professional hygiene with the globally leading Tork brand. We are the market leader in Europe and hold a market share that is approximately twice the size of the second largest player. Essity is the second largest supplier in North America and holds a particularly strong market position in the foodservice segment, where we estimate that the company supplies approximately every second napkin. Essity also has strong positions in emerging markets, such as Russia and Colombia, where we are the market leader.
Production facilities
At the end of 2018, Professional Hygiene had production at 45 sites in 18 countries.
Operations in 2018
Net sales increased 4.9% to SEK 28,017m (26,700). Organic net sales, which exclude exchange rate effects, acquisitions and divestments, increased 1.9%, of which volume accounted for –0.3% and price/mix for 2.2%. The increase was primarily related to Europe, Asia and Latin America. Organic net sales decreased 0.6% in mature markets. Organic net sales increased in Western Europe while it decreased in North America. In emerging markets, which accounted for 19% of net sales, organic net sales increased 13.7%. Acquisitions relating to the increase in the shareholding in associates in Latin America increased net sales by 0.1%. Exchange rate effects increased net sales by 2.9%.
Adjusted operating profit before amortization of acquisition-related intangible assets (adjusted EBITA) decreased 4% (8% excluding currency translation effects and acquisitions) to SEK 3,841m (4,004). Earnings were impacted positively by higher prices, a better mix and cost savings. Higher raw material and energy costs as well as higher distribution costs had a negative impact on earnings.
SEKm |
2018 |
2017 |
% |
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|
|||||||
Net sales |
28,017 |
26,700 |
5% |
||||
Organic net sales1), % |
+1.9% |
+1.5% |
|
||||
Adjusted EBITA2) |
3,841 |
4,004 |
–4% |
||||
Adjusted EBITA margin2), % |
13.7 |
15.0 |
|
||||
Adjusted return on capital employed2), % |
18.1 |
19.7 |
|
||||
Operating cash flow |
3,678 |
4,411 |
–17% |
||||
Investments in non-current assets |
–1,336 |
–888 |
|
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Average number of employees |
7,659 |
7,900 |
|
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Net sales by region
Emerging markets accounted for
of the business area’s net sales in 2018. In emerging markets, organic net sales increased by 13.7% 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.
Adjusted EBITA2), adjusted EBITA margin2) and adjusted return on capital employed2)
2) Excluding items affecting comparability.