2019 at a glance
Key events
Successful innovations and marketing campaigns
Successful innovations have increased customer and consumer value while decreasing the environmental impact. Innovations were launched in all of Essity’s product categories. Essity has received several awards for innovative solutions and marketing campaigns.
SEK 13bn in online sales
Online sales increased to approximately SEK 13bn, corresponding to about 10% of net sales.
Group-wide cost-savings program
The Group-wide cost-savings program, which was launched in September 2018, has been concluded and at the end of 2019 savings amounted to slightly above SEK 900m on an annualized basis.
Divestment of the jointly owned company in Turkey
Essity has exited the Baby Care segment in Turkey through the divestment of its 50% stake of the jointly owned company SCA Yildiz.
Investments in sustainable alternative fiber technology
A decision was taken to invest approximately SEK 400m in an integrated facility for the production of pulp based on alternative fibers from plant-based agricultural by-products.
UN Foundation and Essity convene Global Dialogue
As part of our efforts to break barriers to well-being that are linked to hygiene and health and to contribute to achieving the global sustainable development goals, Essity was convening partner for the fourth consecutive year for the UN Foundation’s Global Dialogue at the UN headquarters in New York.
Additional sustainability targets for packaging
Essity strives for 100% recyclability of packaging and has set additional packaging targets, for example that 85% of the company’s packaging is to be manufactured from renewable or recycled material by 2025. The new targets are part of Essity’s commitment within the framework of the Ellen MacArthur Foundation’s plastics initiative “New Plastic Economy” where Essity is an active member.
Magnus Groth, President and CEO of Essity, spoke at the UN Foundation’s annual dialogue. Here together with Kathy Calvin, President and CEO of United Nations Foundation.
Bodyform PureSensitive™
a feminine care product with a new revolutionary top layer for sensitive intimate skin.
Essity has taken a decision to invest in the production of pulp based on alternative fibers from plant-based agricultural by-products.
Key figures
Organic net sales, which exclude exchange rate effects, acquisitions and divestments, increased 4.5%, of which volume accounted for 2.3% and price/mix for 2.2%. Organic net sales increased 2.1% in mature markets and increased 9.1% in emerging markets. Emerging markets accounted for 37% of net sales.
Adjusted operating profit before amortization of acquisition-related intangible assets (adjusted EBITA), increased 22% (16% excluding currency translation effects, acquisitions and divestments) to SEK 15,840m (12,935). The adjusted EBITA margin rose 1.4 percentage points to 12.3%.
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Net sales
128,975SEKm
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Organic net sales1)
+4.5%
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Operating cash flow
15,639SEKm
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Adjusted EBITA2)
15,840SEKm
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Adjusted EBITA margin2)
12.3%
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Adjusted return
on capital employed2)13.8%
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Adjusted earnings per share3)
14.69SEK
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Earnings per share
13.12SEK
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Proposed dividend per share4)
6.25SEK
1) Excluding exchange rate effects, acquisitions and divestments. 2) Excluding items affecting comparability.
3) Excluding items affecting comparability and amortization of acquisition-related intangible assets. 4) Board of Directors’ dividend proposal.
Net sales
Earnings trend
Operating cash flow
Net sales by business area
Net sales by distribution channel
Net sales by region
The Group’s largest markets, % of net sales
1) Excluding exchange rate effects, acquisitions and divestments.2) Excluding items affecting comparability.