Professional Hygiene
Professional Hygiene
During the year we have for example launched Tork cleaning cloths and several different refillable variants of Tork hand soap and sanitizer.
Brand
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 comprises complete and professional hygiene solutions, including toilet paper, paper hand towels, napkins, soap, lotion, sanitizer, dispensers, cleaning and wiping products, face masks, and service and maintenance. Essity also offers digital solutions, such as sensor technology that enables data-driven cleaning.
Customers consist of companies and office buildings, universities, healthcare facilities, industries, restaurants, hotels, stadiums and other public venues. Distribution channels for the products consist of distributors and e-commerce.
Market positions
Essity is the world’s largest supplier of products and services in the market for professional hygiene with the globally leading Tork brand. We are the market leader in Europe and hold a market share that is nearly three times the size of the second largest player. Essity is the second largest supplier in North America and holds a particularly strong market position in the food service segment, where we estimate that the company supplies approximately every second napkin. Essity also has strong positions in emerging markets, such as Russia and Colombia, where we are the market leader. Essity is number three in the market in Asia through its majority shareholding in Vinda.
Production facilities
At the end of 2021, Professional Hygiene had production at 44 sites in 21 countries.
Operations in 2021
Net sales increased 2.9% to SEK 26,143m (25,418). Organic sales growth amounted to 5.7%, of which volume accounted for 2.8% and price/mix for 2.9%. Organic sales growth amounted to 3.3% in mature markets. In emerging markets, which accounted for 21% of net sales, organic sales growth amounted to 15.0%. Exchange rate effects reduced net sales by 4.5%. The acquisition of Asaleo Care increased net sales by 1.8%. Divestments decreased net sales by 0.1%.
The adjusted gross margin decreased 3.6 percentage points to 23.3% (26.9). Higher costs for raw materials, energy and distribution had a negative impact on the margin. The margin was positively impacted by higher prices, higher volumes, a better mix and cost savings. The adjusted EBITA margin decreased 2.6 percentage points to 10.4% (13.0). Sales and marketing costs were lower also as a share of net sales. Adjusted EBITA decreased 18% (14% excluding currency translation effects, acquisitions and divestments) to SEK 2,710m (3,317).
Net sales
Earnings trend
3) Excluding items affecting comparability.
|
SEKm |
2021 |
2020 |
% |
||||||
|---|---|---|---|---|---|---|---|---|---|
|
Net sales |
26,143 |
25,418 |
3 |
||||||
|
Sales growth1), % |
7.5 |
–14.16 |
|
||||||
|
Organic sales growth2), % |
5.7 |
–14.6 |
|
||||||
|
Adjusted gross margin3), % |
23.3 |
26.9 |
|
||||||
|
Adjusted EBITA3) |
2,710 |
3,317 |
–18 |
||||||
|
Adjusted EBITA margin3), % |
10.4 |
13.0 |
|
||||||
|
Adjusted return on capital employed3), % |
11.8 |
14.6 |
|
||||||
|
Operating cash flow |
2,512 |
3,183 |
–21 |
||||||
|
Investments in non-current assets |
–941 |
–1,135 |
–17 |
||||||
|
Average number of employees |
7,060 |
6,909 |
2 |
||||||
|
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Net sales by region
