Operations and structure

Essity reports its operations according to three business areas: Personal Care, Consumer Tissue and Professional Hygiene. Personal Care includes the Incontinence Products, Medical Solutions, Baby Care and Feminine Care product categories. Consumer Tissue includes toilet paper, household towels, handkerchiefs, facial tissues, wet wipes and napkins. Professional Hygiene includes complete hygiene solutions, including toilet paper, paper hand towels, napkins, hand soap and dispensers.

Europe is Essity’s largest market. The Group also holds strong positions in North America, Latin America and Asia. Expansion takes place through organic growth and acquisitions.

Organization

Essity has the following four business units:

Consumer Goods, which offers consumer tissue, baby care and feminine care in Europe, the Middle East and Africa.
Health and Medical Solutions, which offers incontinence products in Europe, North America, the Middle East and Africa and medical solutions in Asia, Europe, North America, the Middle East and Africa.
Latin America, which offers consumer tissue, baby care, incontinence products, medical solutions, feminine care and professional hygiene in Latin America.
Professional Hygiene, which offers professional hygiene in Europe, North America, the Middle East and Africa.

In addition to the business units, Essity has established three global units:

Global Brand, Innovation and Sustainability has global responsibility for customer and consumer brands, innovation and sustainability and public affairs.
Global Manufacturing has global responsibility for production and technology concerning all product categories with the exception of Medical Solutions.
Global Operational Services has global responsibility for sourcing, logistics, business services, IT and digitalization.

The organization has four Group functions:

Communications
Finance
Human Resources
Legal Affairs

Essity exerts an influence on the subsidiary Vinda, a listed Asian hygiene company in which Essity is a majority shareholder, through board representation.

Events during the year

During the year, decisions were taken on restructuring measures in tissue production in Europe, North America and Latin America.

On September 28, 2018, Essity announced that the company was launching a Group-wide cost-savings program. The program is expected to generate annual cost savings of approximately SEK 900m, with full effect at the end of 2019.

On October 29, 2018, Essity announced that the company was making changes to its organizational structure and Executive Management Team.

On December 28, 2018, the Supreme Administrative Court announced its decision in a tax case in Sweden. The decision reduced Essity’s reported tax expense by approximately SEK 1.1bn in the fourth quarter of 2018. Taxes paid will be refunded to Essity in the first quarter of 2019.