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    Breaking News

    Essity’s Sales Negatively Impacted by Covid-19 Pandemic

    Sales fall 5.6% in 2020

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    01.27.21
    In 2020, Essity’s net sales declined 5.6% compared with the corresponding period a year ago to SEK 121.75 billion ($14.6 billion). Organic net sales, which exclude exchange rate effects, acquisitions and divestments, declined 1.9%, of which volume accounted for -2.3% and price/mix for 0.4%. Sales were negatively impacted by the Covid-19 pandemic and the related lockdowns and restrictions. Organic net sales declined 4.5% in mature markets and increased 2.6% in emerging markets. Emerging markets accounted for 37% of net sales. Exchange rate effects reduced net sales by 3.7%. Acquisitions increased net sales by 0.1% and were largely attributable to the acquisition of the medical solutions company ABIGO Medical AB. Divestment of a partly owned company in Turkey reduced net sales by 0.1%.

    2020 Personal Care segment net sales declined 4.6% to SEK 46.1 billion ($5 billion). Organic net sales were in line with the preceding year, of which volume accounted for -1.4% and price/mix for 1.4%. Organic net sales in mature markets declined 1.7%. In emerging markets, which accounted for 36% of net sales, organic net sales increased 2.7%. Exchange rate effects reduced net sales by 4.6%. The divestment of a partly owned company in Turkey reduced net sales by 0.3%. Acquisitions increased net sales by 0.3% and related mainly to ABIGO Medical AB.

    In the fourth quarter of 2020, net sales declined 8.1% compared with the corresponding period a year ago to SEK 30.95 billion ($3.7 billion). Organic net sales, which exclude exchange rate effects, acquisitions and divestments, declined 0.5%, of which volume accounted for 0.1% and price/mix for -0.6%. Net sales were negatively affected by the Covid-19 pandemic and related lockdowns and restrictions, which mainly impacted Professional Hygiene and Medical Solutions. For retail, organic net sales increased 5.4%. The Group’s organic net sales declined 5.1% in mature markets and increased 6.5% in emerging markets. Emerging markets accounted for 39% of net sales. Exchange rate effects reduced net sales by 7.8%. Acquisitions increased net sales by 0.2% and were largely attributable to the acquisition of ABIGO Medical AB.

    For Incontinence Products, organic net sales increased 2.7%. Growth was related to Europe, North America and emerging markets. In Medical Solutions, organic net sales decreased 8.2%. Sales were negatively impacted by the Covid-19 pandemic and the related lockdowns and restrictions. For Baby Care, organic net sales declined 2.5%, related to Western Europe and emerging markets. For Feminine Care, organic net sales increased 5%, related to emerging markets.

    Fourth quarter 2020 net sales in the Personal Care segment declined 6.2% to SEK 11.66 billion ($1.4 billion). Organic net sales increased 2.2%, of which volume accounted for 1% and price/mix for 1.2%. Organic net sales in mature markets increased 0.6%. In emerging markets, which accounted for 35% of net sales, organic net sales increased 4.2%. Exchange rate effects reduced net sales by 8.9%. Acquisitions increased net sales by 0.5%.

    Sales were negatively impacted by the Covid-19 pandemic as demand was temporarily negatively impacted by lockdowns as consumption decreased slightly when consumers spent more time in the home. For Incontinence Products, organic net sales increased 2.8%. The increase was related to Europe, North America and emerging markets. In Medical Solutions, organic net sales decreased 2.1%. Sales in orthopedics and compression therapy were negatively impacted by Covid-19-related lockdowns and restrictions, while organic net sales increased 6.4% in wound care. For Baby Care, organic net sales increased 3.4% related to Western Europe. For Feminine Care, organic net sales increased 5.3%, related to emerging markets.
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