Net sales and earnings
Net sales
Net sales increased 0.1% compared with the corresponding period a year ago to SEK 121,867m (121,752). Sales growth, including organic sales growth and acquisitions, amounted to 4.5%. Organic sales growth, which excludes exchange rate effects, acquisitions and divestments, amounted to 3.3%, of which volume accounted for 1.8% and price/mix for 1.5%. All business areas reported organic sales growth. Sales were negatively impacted by the COVID-19 pandemic and the related lockdowns and restrictions, primarily within Professional Hygiene. Organic sales growth in mature markets amounted to 0.0% and in emerging markets to 8.8%. Emerging markets accounted for 38% of net sales. Exchange rate effects reduced net sales by 3.6%. The acquisition of Asaleo Care increased net sales by 1.2%. Divestments and deconsolidation reduced net sales by 0.8%. Organic sales growth amounted to 1.3% compared with 2019.
Earnings
The Group’s adjusted gross margin decreased by 3.6 percentage points year on year to 28.9% (32.5). Higher costs for raw materials, energy and distribution reduced the margin by 4.8 percentage points. The margin was positively impacted by higher volumes, higher selling prices, a better mix and cost savings. Continuous cost savings amounted to SEK 698m.
The Group’s adjusted EBITA margin decreased 3.3 percentage points to 11.2% (14.5). Sales costs, excluding marketing costs, were lower also as a share of net sales. Marketing costs were higher but in line with the corresponding period a year ago as a share of net sales.
Adjusted operating profit before amortization of acquisition-related intangible assets (adjusted EBITA) decreased 22% (19% excluding currency translation effects, acquisitions and divestments) to SEK 13,680m (17,626).
Items affecting comparability amounted to SEK 371m (–59) and were positively affected by the remeasurement of Essity’s previous holding of 36.2% in Asaleo Care on July 1 in conjunction with the acquisition of the remaining shares, yielding a positive revaluation effect of SEK 706m. Other costs are mainly related to transaction costs for the acquisitions of Asaleo Care and Productos Familia S.A., as well as restructuring costs.
Financial items decreased to SEK –662m (–958), mainly due to lower interest.
Adjusted profit before tax decreased 23% (20% excluding currency translation effects, acquisitions and divestments) and amounted to SEK 12,166m (15,859).
The tax expense, excluding effects of items affecting comparability, was SEK 2,803m (4,054).
Adjusted profit for the period decreased 21% (18% excluding currency translation effects, acquisitions and divestments) to SEK 9,363m (11,805).
Profit for the period decreased 16% (13% excluding currency translation effects, acquisitions and divestments) to SEK 9,810m (11,747). Earnings per share were SEK 12.27 (14.56). The adjusted earnings per share were SEK 12.50 (15.45).
Key figures
The adjusted return on capital employed1) was 12.0% (15.7). The adjusted return on equity1) was 14.3% (18.3).
SEKm |
2021 |
2020 |
2019 |
||||
|---|---|---|---|---|---|---|---|
Net sales |
121,867 |
121,752 |
128,975 |
||||
Adjusted EBITA1) |
13,680 |
17,626 |
15,840 |
||||
EBITA |
14,051 |
17,567 |
15,127 |
||||
Adjusted operating profit1) |
12,828 |
16,817 |
15,062 |
||||
Items affecting comparability |
371 |
–59 |
–713 |
||||
Operating profit |
13,199 |
16,758 |
14,349 |
||||
Financial items |
–662 |
–958 |
–1,309 |
||||
Adjusted profit before tax1) |
12,166 |
15,859 |
13,753 |
||||
Profit before tax |
12,537 |
15,800 |
13,040 |
||||
Adjusted tax1) 2) |
–2,803 |
–4,054 |
–2,987 |
||||
Tax2) |
–2,727 |
–4,053 |
–2,828 |
||||
Adjusted profit for the period1) |
9,363 |
11,805 |
10,766 |
||||
Profit for the period |
9,810 |
11,747 |
10,212 |
||||
|
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Net sales, share of Group
Adjusted EBITA1) and adjusted EBITA margin1)
1) Excluding items affecting comparability.
Adjusted earnings per share1)
1) Excluding items affecting comparability and amortization of acquisition-related intangible assets.