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    Breaking News

    Essity’s Q2 Sales Up

    Net sales increased 12.7%

    07.18.17
    Following the split of the SCA Group, hygiene and health company Essity (formerly SCA Hygiene) was listed on Nasdaq Stockholm on June 15, 2017.

    The Group’s net sales for the second quarter of 2017 increased 12.7% compared with the corresponding period a year ago to SEK 28.1 billion ($3.4 billion). Organic sales declined by 0.1%. As part of Essity’s focus on profitable growth for increased value creation, the company has discontinued certain underperforming market positions and contracts with unsatisfactory profitability. This has had a negative impact on organic sales. In emerging markets, which accounted for 35% of net sales, organic sales increased 2.9%. Mature markets decreased by 1.5%.

    In the personal care market, net sales increased 28.8% to SEK 10.8 billion ($1.3 billion). Organic sales, which exclude exchange rate effects, acquisitions and divestments, declined 0.1%, of which volume accounted for 0.4% and price/mix for -0.5%. The closure of the Baby Care business in Mexico and the hygiene business in India negatively impacted organic sales by approximately 1%. Organic sales in mature markets increased by 1.1%. In emerging markets, which accounted for 37% of net sales, organic sales declined by 1.8%. The acquisition of BSN medical increased sales by 24.9%. Exchange rate effects increased net sales by 4.0%.

    For Incontinence Products, under the Tena brand, organic sales increased 1.4%. Growth is mainly attributable to Latin America, North America and Eastern Europe. In Europe, sales were in line with the corresponding period a year ago. The European retail sector reported good growth, while lower sales to the healthcare sector had a negative effect on growth. For Baby Care, organic sales decreased 4.8%. The decline was mainly the result of the closure of the Baby Care businesses in Mexico and India, as well as lower sales in Russia. In Europe, organic sales increased for Baby Care. For Feminine Care, organic sales increased by 2%, attributable to Latin America, Asia and Western Europe.
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