Consumer Tissue
Consumer Tissue
During the year we have for example launched an upgrade of our moist toilet paper under the Lotus, Tempo and Zewa brands. It is just as safe to flush down the toilet as dry toilet paper and consists of 100% plant-based fibers.
Brands
Key figures
Net sales, SEKm
Sales growth1)
Organic sales growth2)
Adjusted EBITA margin3)
Adjusted return on capital employed3)
1) Including organic sales growth and acquisitions.
2) Excluding exchange rate effects, acquisitions and divestments.
3) Excluding items affecting comparability.
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.
Preparations for a new division
In 2021, Essity commenced work to create a new division in Consumer Tissue, Consumer Tissue Private Label Europe. The new division accounts for approximately 14% of net sales in Consumer Tissue. Approximately 1,900 employees and seven production facilities in Belgium, France, Italy and Germany will be included in the new division.
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 Ecuador and the company holds the number two position in Mexico. Familia and Regio are leading brands in Colombia and Mexico, respectively.
Production facilities
At the end of 2021, Consumer Tissue had production at 45 sites in 18 countries.
Operations in 2021
Net sales decreased 2.3% to SEK 49,086m (50,221). Organic sales growth amounted to 0.5%, of which volume accounted for 0.3% and the price/mix 0.2%. Organic sales growth amounted to –5.6% in mature markets. In emerging markets, which accounted for 50% of net sales, organic sales growth amounted to 7.3%. Exchange rate effects decreased net sales by 2.6%. The acquisition of Asaleo Care increased net sales by 0.8%. Divestments and deconsolidation decreased net sales by 1.0%.
The adjusted gross margin decreased by 6.0 percentage points to 21.2% (27.2). Higher costs for raw materials, energy and distribution and lower prices had a negative impact on the margin. The margin was positively impacted by higher volumes, a better mix and cost savings. The adjusted EBITA margin decreased 6.5 percentage points to 9.5% (16.0). Sales and marketing costs were higher also as a share of net sales. Adjusted EBITA decreased 42% (40% excluding currency translation effects, acquisitions and divestments) to SEK 4,661m (8,045).
Net sales
Earnings trend
3) Excluding items affecting comparability.
|
SEKm |
2021 |
2020 |
% |
||||||
|---|---|---|---|---|---|---|---|---|---|
|
Net sales |
49,086 |
50,221 |
–2 |
||||||
|
Sales growth1), % |
1.2 |
4.1 |
|
||||||
|
Organic sales growth2), % |
0.5 |
4.1 |
|
||||||
|
Adjusted gross margin3), % |
21.2 |
27.2 |
|
||||||
|
Adjusted EBITA3) |
4,661 |
8,045 |
–42 |
||||||
|
Adjusted EBITA margin3), % |
9.5 |
16.0 |
|
||||||
|
Adjusted return on capital employed3), % |
9.6 |
17.3 |
|
||||||
|
Operating cash flow |
3,691 |
6,455 |
–43 |
||||||
|
Investments in non-current assets |
–3,563 |
–3,191 |
12 |
||||||
|
Average number of employees |
21,244 |
20,878 |
2 |
||||||
|
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Net sales by region
