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    Breaking News

    Essity Reports Lower Sales

    First quarter sales negatively impacted by Covid-19 pandemic

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    04.26.21
    Essity’s net sales in the first quarter of 2021 declined 18.3% compared with the corresponding period a year ago to SEK 27.53 billion ($3.3 billion Organic net sales, which exclude exchange rate effects, acquisitions and divestments, declined 9.9%, of which volume accounted for -8.9% and price/mix for -1%. Sales were negatively impacted by the Covid-19 pandemic and the extensive lockdowns and restrictions, primarily within Professional Hygiene and Medical Solutions. Furthermore, the comparative figures were affected by the strong sales growth that resulted from stockpiling in the first quarter of the preceding year by consumers and distributors. Stockpiling in the first quarter of the preceding year explains approximately half of the reduction in organic net sales. Organic net sales declined 18.3% in mature markets and increased 4.2% in emerging markets. Emerging markets accounted for 39% of net sales. Exchange rate effects reduced net sales by 7.7%. Acquisitions, divestments and deconsolidation reduced net sales by 0.7%.

    In the Personal Care segment, net sales declined 15.1% to SEK 10.76 billion ($1.3 billion). Organic net sales declined 5.9%, of which volume accounted for -7.0% and price/mix for 1.1%. Sales were negatively impacted by the Covid-19 pandemic as demand was temporarily negatively impacted by restrictions and lockdowns as consumption decreased slightly when consumers spent more time in the home. Furthermore, the comparative figures were affected by the strong sales growth in the first quarter of the preceding year that resulted from stockpiling by consumers. Organic net sales in mature markets declined 9.1%. In emerging markets, which accounted for 35% of net sales, organic net sales declined 1.1%. Exchange rate effects reduced net sales by 8.7%. Acquisitions and divestments reduced net sales by 0.5%.

    For Incontinence Products, with Essity’s globally leading Tena brand, organic net sales decreased 6.1%. In Medical Solutions, organic net sales decreased 3.3%. Sales in orthopedics and compression therapy were negatively impacted by Covid-19-related lockdowns and restrictions, while organic net sales increased 2.1% in wound care. For Baby Care, organic net sales declined 12.2%. For Feminine Care, organic net sales decreased 0.1%.
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