Nonwovens Industry Staff04.23.20
Essity’s net sales increased 10% in the first quarter of 2020 to SEK 33.712 billion ($3.3 billion). Organic net sales increased 7.8%, of which volume accounted for 5.9% and price/mix for 1.9%. In mature markets, organic net sales increased 10.2%. In emerging markets, which accounted for 35% of net sales, organic net sales increased 4%.
In the Personal Care segment, net sales increased 9.8% to SEK 12.669 billion ($1.3 billion). Organic net sales, which exclude exchange rate effects, acquisitions and divestments, increased 8.8%, of which volume accounted for 6.9% and price/mix for 1.9%. Organic net sales in mature markets increased 7.5%. In emerging markets, which accounted for 36% of net sales, organic net sales increased 11.5%. Exchange rate effects increased net sales by 1.8%. Divestments reduced net sales by 0.8% and are largely attributable to the disposal of a partly owned company in Turkey.
The COVID-19 pandemic resulted in a sharp increase in sales in many markets for Incontinence Products, Baby Care and Feminine Care as a result of stockpiling. For Incontinence Products, organic net sales increased 11.8%. Growth was related to Western Europe, North America and emerging markets. Growth in Europe and North America was related to the retail trade and the healthcare sector. In Medical Solutions, organic net sales decreased 0.1%. In Western Europe and North America, organic net sales declined, while it increased in emerging markets. Sales of compression therapy and orthopedics were negatively impacted by the COVID-19 pandemic. For Baby Care, organic net sales increased 5.6%, primarily related to Western Europe and Latin America. For Feminine Care, organic net sales increased 15.5%, related to Europe, Latin America and Asia.
During the COVID-19 pandemic, Essity has three main priorities: care for its employees, continuing to operate a successful business and contributing to society. To maintain a safe work environment for its employees, satisfy increased demand and safeguard production and logistics, the company has carried out measures in all parts of the business, including new ways of working for its employees, production adaptations and securing transportation. Essity has increased its presence and activity in digital sales channels. It contributes to society by delivering its leading hygiene and health solutions. In Sweden, the U.S. and Mexico, Essity is investing in the production of surgical masks and face masks for the healthcare sector and its employees. Essity supports the WHO COVID-19 Solidarity Response Fund and several local initiatives.
In the Personal Care segment, net sales increased 9.8% to SEK 12.669 billion ($1.3 billion). Organic net sales, which exclude exchange rate effects, acquisitions and divestments, increased 8.8%, of which volume accounted for 6.9% and price/mix for 1.9%. Organic net sales in mature markets increased 7.5%. In emerging markets, which accounted for 36% of net sales, organic net sales increased 11.5%. Exchange rate effects increased net sales by 1.8%. Divestments reduced net sales by 0.8% and are largely attributable to the disposal of a partly owned company in Turkey.
The COVID-19 pandemic resulted in a sharp increase in sales in many markets for Incontinence Products, Baby Care and Feminine Care as a result of stockpiling. For Incontinence Products, organic net sales increased 11.8%. Growth was related to Western Europe, North America and emerging markets. Growth in Europe and North America was related to the retail trade and the healthcare sector. In Medical Solutions, organic net sales decreased 0.1%. In Western Europe and North America, organic net sales declined, while it increased in emerging markets. Sales of compression therapy and orthopedics were negatively impacted by the COVID-19 pandemic. For Baby Care, organic net sales increased 5.6%, primarily related to Western Europe and Latin America. For Feminine Care, organic net sales increased 15.5%, related to Europe, Latin America and Asia.
During the COVID-19 pandemic, Essity has three main priorities: care for its employees, continuing to operate a successful business and contributing to society. To maintain a safe work environment for its employees, satisfy increased demand and safeguard production and logistics, the company has carried out measures in all parts of the business, including new ways of working for its employees, production adaptations and securing transportation. Essity has increased its presence and activity in digital sales channels. It contributes to society by delivering its leading hygiene and health solutions. In Sweden, the U.S. and Mexico, Essity is investing in the production of surgical masks and face masks for the healthcare sector and its employees. Essity supports the WHO COVID-19 Solidarity Response Fund and several local initiatives.