Personal Care
Essity is a leading global player in personal care
Offering
Essity’s offering includes Incontinence Products, Medical Solutions, Baby Care and Feminine Care. Products are sold under brands such as TENA, JOBST, Leukoplast, Libero, Libresse, Nosotras and Saba, and as retailer brands.
In Incontinence Products, with the globally leading brand TENA, Essity offers a broad range of incontinence products that also includes skincare products, wet wipes, wash gloves and digital solutions with sensor technology. In Baby Care, Essity offers open baby diapers and pant diapers as well as baby care products such as wet wipes, shampoo, lotion and baby oil. In Europe, Essity offers baby diapers under its own Libero and Lotus brands and as retailer brands. In Feminine Care, Essity offers a broad product portfolio that includes pads, panty liners, tampons, intimate soaps, intimate wipes and washable absorbent underwear. In Medical Solutions, Essity offers products and services in wound care, compression therapy and orthopedics.
Distribution channels are the retail trade, pharmacies, medical device stores, hospitals, distributors and care institutions and e-commerce.
Market positions
Essity is the global market leader in the market for incontinence products with the TENA brand, holding a global market share that is nearly twice the size of the second largest player. Essity is the market leader in Europe, Asia (excluding Japan) and Latin America. Essity is the third largest player in Asia (including Japan) and the fourth largest in North America.
In Baby Care, Essity is the world’s fifth largest player and the second largest in Europe. Essity’s strongest market is the Nordic region, where the Libero brand is the market leader. Examples of other strong regional brands are Drypers in South East Asia and Pequeñin in South America.
In Feminine Care, Essity is the world’s fifth largest player, the third largest in Europe and the market leader in Latin America. Examples of regional brands supported by Essity’s global brand platform in Feminine Care include Libresse in the Nordic region, Russia, Eastern Europe, the Netherlands, Malaysia and China, Bodyform in the UK, Nana in France and the Middle East, and Saba and Nosotras in Latin America.
In Medical Solutions, in the product categories in which the company is active, Essity is the world’s fourth largest player and the market leader in Europe. Essity is the largest global player in compression therapy and the third largest player in orthopedics. In wound care, which includes acute and advanced wound care, Essity is the fifth largest player. Essity holds the number three position within acute wound care. Examples of strong brands include JOBST, Leukoplast, Cutimed, Delta-Cast and Actimove.
Production facilities
At the end of 2020, Personal Care had production at 35 sites in 25 countries.
Operations in 2020
Net sales declined 4.6% to SEK 46,095m (48,340). Organic net sales were in line with the preceding year, of which volume accounted for –1.4% and price/mix for 1.4%. Organic net sales in mature markets declined 1.7%. In emerging markets, which accounted for 36% of net sales, organic net sales increased 2.7%. Exchange rate effects reduced net sales by 4.6%. The divestment of a partly owned company in Turkey reduced net sales by 0.3%. Acquisitions increased net sales by 0.3% and related mainly to ABIGO Medical AB.
Sales were negatively impacted by the COVID-19 pandemic as demand was temporarily negatively impacted by lockdowns and restrictions as consumption decreased slightly when consumers spent more time in the home. For Incontinence Products, with Essity’s globally leading TENA brand, organic net sales increased 2.7%. Growth was related to Europe, North America and emerging markets. In Medical Solutions, organic net sales decreased 8.2%. Sales were negatively impacted by the COVID-19 pandemic and the related lockdowns and restrictions. For Baby Care, organic net sales declined 2.5%, related to Western Europe and emerging markets. For Feminine Care, organic net sales increased 5.0%, related to emerging markets.
The adjusted gross margin increased 2.0 percentage points to 41.4% (39.4). The margin was positively impacted by higher prices, a better mix, lower raw material costs and cost savings. Lower volumes and higher distribution costs had a negative impact on the margin. The adjusted EBITA margin increased by 1.5 percentage points to 15.5% (14.0). Sales and marketing costs increased as a share of net sales.
Adjusted EBITA increased 6% (12% excluding currency translation effects, acquisitions and divestments) to SEK 7,161m (6,746).
Brands
With the launch of TENA Silhouette Noir, TENA is the first brand in the world to offer a range of black liners, pads and absorbent single-use underwear that is incredibly discreet.
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 product category
Net sales by region
SEKm |
2020 |
2019 |
% |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Net sales |
46,095 |
48,340 |
–5 |
|||||||||
Organic net sales1), % |
0.0 |
+3.4 |
|
|||||||||
Adjusted gross margin2), % |
41.4 |
39.4 |
|
|||||||||
Adjusted EBITA2) |
7,161 |
6,746 |
+6 |
|||||||||
Adjusted EBITA margin2), % |
15.5 |
14.0 |
|
|||||||||
Adjusted return on capital employed2), % |
16.4 |
15.2 |
|
|||||||||
Operating cash flow |
7,485 |
6,495 |
+15 |
|||||||||
Investments in non-current assets |
–1,658 |
–1,866 |
–11 |
|||||||||
Average number of employees |
18,298 |
17,167 |
+7 |
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|
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