Operations and structure

Essity reports its operations according to three business areas: Personal Care, Consumer Tissue and Professional Hygiene. Personal Care comprises the product categories of Incontinence Products, Medical Solutions, Baby Care and Feminine Care and includes incontinence products, baby diapers, pads, panty liners, tampons, wet wipes, skincare products and digital solutions with sensor technology, as well as products and services in wound care, compression therapy and orthopedics. Consumer Tissue includes toilet paper, household towels, handkerchiefs, facial tissues, wet wipes, napkins and face masks. Professional Hygiene includes complete hygiene solutions, including toilet paper, paper hand towels, napkins, hand soap, hand sanitizer, dispensers and face masks. Essity also offers digital solutions, such as Internet of Things sensor technology that enables data-driven cleaning.

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, markets and sells products in the categories of consumer tissue, baby care and feminine care in Europe, the Middle East and Africa.
Health and Medical Solutions, markets and sells products in the categories of incontinence products in Europe, North America, the Middle East and Africa and produces, markets and sells products in medical solutions in Asia, Europe, North America, the Middle East and Africa.
Latin America, markets and sells products in the categories of consumer tissue, baby care, incontinence products, medical solutions, feminine care and professional hygiene in Latin America.
Professional Hygiene, markets and sells complete hygiene solutions to the business area’s customer segments 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 Group company Vinda, a listed Asian hygiene company in which Essity is a majority shareholder, through board representation.

Events during the year

The COVID-19 pandemic and related lockdowns and restrictions had a negative effect on Essity’s sales, which mainly impacted Professional Hygiene and Medical Solutions. Essity acquired the MedTech companies ABIGO Medical AB and Novioscan. Essity divested its 49% stake in the company Sancella Tunisia. The target for adjusted return on capital employed was raised to above 17% by 2025. Essity decided to invest in a new digital platform to accelerate the company’s digital transformation. The “Manufacturing Roadmap” program was launched to optimize and streamline all of Essity’s approximately 60 wholly owned facilities.