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    Breaking News

    Essity’s Net Sales Increase 12% in 2023

    Consumer Goods segment sales up 10% for the year

    01.26.24
    Essity’s net sales in 2023 increased 12.1% to SEK 147.1 billion ($14 billion). Sales growth, including organic sales growth and acquisitions, amounted to 6.7%, of which volume accounted for -3.7%, price/mix for 9.5% and acquisitions for 0.9%. The lower volumes were mainly a result of the company’s focus on profitable growth and thereby its decisions to implement restructuring measures in Professional Hygiene and to exit contracts with insufficient profitability in Incontinence Products Health Care and Baby Care. Furthermore, volumes were negatively impacted by lower volumes in Russia prior to the divestment and the discontinuation of the baby diaper business in Latin America. Organic sales growth in mature markets amounted to 4.7% and in emerging markets to 9.2%. Emerging markets accounted for 26% of net sales. Exchange rate effects increased net sales by 6.7%. Divestments reduced net sales by 1.3% and were largely attributable to the divestment of Russian operations.

    In the Consumer Goods segment, 2023 net sales increased 10.6% to SEK 79.9 billion ($7.7 billion). Sales growth, including organic sales growth and acquisitions, amounted to 5.4%, of which volume accounted for -4.4%, price/mix for 8.1% and acquisitions for 1.7%. The lower volumes were mainly a result of the company’s focus on profitable growth and lower volumes in Russia prior to the divestment. Organic sales growth amounted to 1.7% in mature markets. In emerging markets, which accounted for 33% of net sales, organic sales growth was 7.8%. Exchange rate effects increased net sales by 7%. Divestments reduced net sales by 1.8% and pertain to the divestment of Russian operations.

    In the fourth quarter of 2023, net sales were on a par with the preceding year and amounted to SEK 36.6 billion ($3.5 billion). Sales growth, including organic sales growth and acquisitions, amounted to -0.7%, of which volume accounted for -1.4%, price/mix for 0.7% and acquisitions for 0%. The lower volumes were mainly a result of the company’s focus on profitable growth and thereby its decisions to implement restructuring measures in Professional Hygiene and to exit contracts with insufficient profitability in Incontinence Products Health Care and Baby Care. Organic sales growth in mature markets amounted to -3.5% and in emerging markets to 8%. Emerging markets accounted for 26% of net sales. Exchange rate effects increased net sales by 3.2%. Divestments reduced net sales by 2.5% and were largely attributable to the divestment of Russian operations.

    In the Consumer Goods segment, fourth quarter 2023 net sales decreased by 2.9% to SEK 19.87 billion ($1.9 billion). Sales growth, including organic sales growth and acquisitions, amounted to -2.8%, of which volume accounted for -0.8%, price/mix for -2% and acquisitions for 0%. Organic sales growth amounted to -7.7% in mature markets. In emerging markets, which accounted for 33% of net sales, organic sales growth was 7.3%. Exchange rate effects increased net sales by 3.4%. Divestments reduced sales by 3.5% and pertain to the divestment of Russian operations.

    For Incontinence Products Retail, organic sales growth amounted to 9.8% due to higher volumes, higher prices and a better mix. In Feminine Care, organic sales growth amounted to 16.5% as a result of higher volumes, higher prices and better mix. In Baby Care, organic sales growth amounted to 2% mainly as a result of higher prices and a better mix. Volumes were negatively impacted by the decision to exit retailer brands contracts with insufficient profitability in Europe. In Consumer Tissue, organic sales growth amounted to -10.3% as a result of a lower volumes and lower prices.
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