With the target of growing, both organically and through acquisitions, within the categories and adjacent product areas with the highest profitability, we are continuing our transformation journey.
New sales growth target
As a consequence of higher growth ambitions, Essity decided in 2021 on a new sales growth target of more than 5%, which includes both organic sales growth and acquisitions. The target will be reached through the continued implementation of our strategy: by leveraging favorable market trends, increasing market shares through successful innovation and strong brands, expanding the offering, and acquisitions in categories with high margins. Growth, both organic and through acquisitions, is prioritized in the Medical Solutions, Incontinence Products, Feminine Care and Professional Hygiene categories.
Higher acquisition pace
Essity carried out several acquisitions in 2021. We have acquired the Australian hygiene company Asaleo Care and increased our ownership in the previous jointly owned Colombian hygiene company Productos Familia S.A. Essity strengthened its offering in Medical Solutions with the acquisition of the remaining 25% of shares in ABIGO Medical AB, which develops, manufactures and markets the Sorbact® technology for advanced wound care. Through the acquisition of the sports tape brands Coach, Elastikon and Zonas, Essity is a leading distributor of sports medicine in the USA market. The offering in Medical Solutions was also strengthened with the acquisition of AquaCast Liner, a specialist orthopedics company that supplies waterproof cast liners in the USA market, and with the acquisition of Hydrofera, which offers technology and products in advanced wound care. We can see additional acquisition opportunities to accelerate the company’s transformation journey.
New business areas in 2022
As of 2022, Essity’s business areas are Health & Medical, Consumer Goods and Professional Hygiene. These are aligned with the company’s customer and sales channels and will lead to an expansion of the offerings to new and adjacent categories as well as extended service content on the basis of customer and consumer needs. The new areas support the company’s new sales growth target through strategies for organic and acquisition-driven growth, and aim to achieve higher growth and profit margins as well as less capital tied up.