Operations and structure
Up to and including 2021, Essity reported its operations according to three business areas: Personal Care, Consumer Tissue and Professional Hygiene. Personal Care comprised the product categories of Incontinence Products, Medical Solutions, Baby Care and Feminine Care, and included incontinence products, baby diapers, pads, panty liners, tampons, washable absorbent underwear, reusable menstrual cups, 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 included toilet paper, household towels, handkerchiefs, facial tissues, wet wipes, napkins and face masks. Professional Hygiene included complete hygiene solutions, including toilet paper, paper hand towels, napkins, microfiber cloths, cleaning and wiping products, soap, lotion, sanitizer, dispensers, face masks and digital solutions, such as 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.
Essity has the following four business units:
- Consumer Goods, which markets and sells products in the categories of consumer tissue, baby care, feminine care and incontinence products retail in Europe, the Middle East and Africa.
- Health & Medical Solutions, which markets and sells products in the category of incontinence products in Europe, North America, the Middle East and Africa, and markets and sells products in the category of medical solutions in Asia, Europe, North America, the Middle East and Africa.
- Latin America, which 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, which markets and sells complete hygiene solutions as well as service and maintenance to the business area’s customer segments in Europe, North America, the Middle East and Africa.
The financial reporting of these four business units is presented under one or more of the Personal Care, Consumer Tissue or Professional Hygiene business areas in the company’s external financial reporting.
During the year, Essity acquired all of the shares in Asaleo Care, which was listed on the Sydney Stock Exchange and markets and sells products primarily in professional hygiene as well as the categories of incontinence products and feminine care in Australasia (Australia, New Zealand and some of the Pacific Islands). Following the acquisition, the business is being operated as an independent unit under the name Essity AustralAsia.
In addition to the business units, Essity has established three global units:
- Global Brand, Innovation & Sustainability has global responsibility for customer and consumer brands, innovation and sustainability and public affairs.
- Global Supply Chain has global responsibility for production, technology, logistics and distribution in relation to all product categories with the exception of Medical Solutions.
- Global Operational Services has global responsibility for sourcing, business services, IT and digitalization.
Essity has five Group functions:
- Human Resources
- Legal Affairs
- Strategy & Business Development
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
Essity has a new sales growth target of more than 5%, which includes both organic sales growth and acquisitions. This replaces the previous target of organic sales growth of more than 3%. New and updated sustainability targets have been presented, including a commitment to develop targets to reach net-zero emissions of greenhouse gases by 2050 at the latest. This includes raising the ambition level of Essity’s current Science Based Targets. Other updated targets include sustainable innovations, occupational safety and responsible sourcing.
Essity finalized the acquisitions of Asaleo Care, Productos Familia S.A., ABIGO Medical AB, AquaCast Liner, Hydrofera and the sports tape brands Coach, Elastikon and Zonas.
In the Consumer Tissue business area, Essity has begun work to create a new Consumer Tissue Private Label Europe division.
Essity has decided on new business areas from January 1, 2022. The business areas are Health & Medical, Consumer Goods and Professional Hygiene. Health & Medical comprises the categories Incontinence Products Health Care and Medical Solutions; Consumer Goods the categories Incontinence Products Retail, Baby Care, Feminine Care and Consumer Tissue; and Professional Hygiene the categories AfH Tissue, Skin Care and Cleaning & Wiping.
Events after year-end
On February 2, 2022, Essity announced that the company had acquired Legacy Converting, Inc., a USA-based company providing professional wiping and cleaning products.