Professional Hygiene
Tork Xpressnap Fit® is a new napkin dispenser system for restaurants and cafés that offers greater efficiency with its compact design and serves more guests between refills.
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 that enables data-driven cleaning.
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 more than 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 food service 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.
Read more about Essity’s market positions
Production facilities
At the end of 2019, Professional Hygiene had production at 45 sites in 19 countries.
Read more about Essity’s production facilities
Operations in 2019
Net sales increased 9.7% to SEK 30,731m (28,017). Organic net sales, which exclude exchange rate effects, acquisitions and divestments, increased 3.6%, of which volume accounted for 1.5% and price/mix for 2.1%. Organic net sales increased 2.2% in mature markets. In emerging markets, which accounted for 20% of net sales, organic net sales increased 9.9%. Exchange rate effects increased net sales by 6.1%.
Adjusted operating profit before amortization of acquisition-related intangible assets (adjusted EBITA) increased 16% (10% excluding currency translation effects) to SEK 4,463m (3,841). Earnings were positively impacted by higher prices, a better mix, higher volumes, lower raw material costs and cost savings. Stock revaluations, due to lower raw material prices, had a negative impact on earnings. Investments to increase growth resulted in higher sales and marketing costs.
Net sales
Organic net sales1)
Adjusted EBITA2)
Adjusted EBITA margin2)
Adjusted return on
capital employed2)
Emerging markets’ share of business area’s net sales
Organic net sales1)
in emerging markets
SEKm |
2019 |
2018 |
% |
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|
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Net sales |
30,731 |
28,017 |
10 |
||||
Organic net sales1), % |
+3.6% |
+1.9% |
|
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Adjusted EBITA2) |
4,463 |
3,841 |
16 |
||||
Adjusted EBITA margin2), % |
14.5 |
13.7 |
|
||||
Adjusted return on capital employed2), % |
18.9 |
18.1 |
|
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Operating cash flow |
4,938 |
3,363 |
47 |
||||
Investments in non-current assets |
–1,402 |
–1,337 |
|
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Average number of employees |
7,287 |
7,659 |
|
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Net sales by region
Net sales
Earnings trend
1) Excluding exchange rate effects, acquisitions and divestments.
2) Excluding items affecting comparability.