Consumer Tissue
Offering
Essity’s offering includes toilet paper, household towels, handkerchiefs, facial tissues, wet wipes, napkins and face masks. Products are sold under brands such as Lotus, Regio, Tempo, Vinda and Zewa. In Europe, Essity also sells products under retailer brands. Distribution channels for the products are the retail trade and e-commerce.
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 more than twice the size of the second largest player. Lotus, Tempo and Zewa are the leading brands in, for example, France, Germany and Russia. Cushelle and Plenty are strong brands in the UK and Ireland. Essity is the market leader in China and Asia 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 2020, Consumer Tissue had production at 44 sites in 18 countries.
Operations in 2020
Net sales increased 0.6% to SEK 50,221m (49,904). Organic net sales increased 4.1%. Volumes accounted for an increase of 5.7% and the price/mix a decrease of –1.6%. Organic net sales increased 1.7% in mature markets. In emerging markets, which accounted for 47% of net sales, organic net sales increased by 6.9%. Exchange rate effects decreased net sales by 3.5%.
The adjusted gross margin increased 5.5 percentage points to 27.2% (21.7). The gross margin was positively impacted by higher volumes, a better mix, lower raw material and energy costs and cost savings. Higher distribution costs and lower prices had a negative impact on the margin. The adjusted EBITA margin increased by 5.3 percentage points to 16.0% (10.7). Sales and marketing costs increased as a share of net sales.
Adjusted EBITA increased 51% (55% excluding currency translation effects, acquisitions and divestments) to SEK 8,045m (5,321).
Essity is the world’s
second largest supplier
of consumer tissue
Brands
With the launch of “Pure Natural” for the Lotus, Zewa, Tempo and Colhogar brands, Essity offers toilet paper, handkerchiefs and facial tissues with an extra soft quality that are free from allergens1), dyes and added fragrances. The tissue is manufactured from certified fiber, of which about 30% of the fiber is unbleached. The plastic packaging is recyclable and 30% of the plastic is made from recycled plastic.
1) 26 EU regulated allergens.
Key figures
Net sales
Organic net sales1)
Adjusted gross margin2)
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
Net sales
Earnings trend
Net sales by region
For Consumer Tissue, 32% of total net sales was related to retailer brands.
SEKm |
2020 |
2019 |
% |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Net sales |
50,221 |
49,904 |
+1 |
|||||||||
Organic net sales1), % |
+4.1 |
+6.1 |
|
|||||||||
Adjusted gross margin2), % |
27.2 |
21.7 |
|
|||||||||
Adjusted EBITA2) |
8,045 |
5,321 |
+51 |
|||||||||
Adjusted EBITA margin2), % |
16.0 |
10.7 |
|
|||||||||
Adjusted return on capital employed2), % |
17.3 |
11.2 |
|
|||||||||
Operating cash flow |
6,455 |
4,870 |
+33 |
|||||||||
Investments in non-current assets |
–3,191 |
–2,239 |
+43 |
|||||||||
Average number of employees |
20,878 |
21,526 |
–3 |
|||||||||
|
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