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Essity

Essity is a leading global hygiene and health company that develops, produces, markets and sells products and services in the areas of Personal Care, Consumer Tissue and Professional Hygiene.

Value is created by developing leading hygiene and health products that improve people’s well-being and quality of life. The innovation process plays a central role in Essity’s strategy. It is based on current trends, customer and consumer insights, new technology, new business models and the company’s ambition to contribute to a sustainable and circular society. Essity works with digitalization in all parts of operations, such as through online sales and development of digital solutions for customers and consumers. Through continuous efficiency improvement and focus on growing profitable market positions and improving or exiting from lowperforming positions, Essity works to improve profitability.

Operations are global, with sales in some 150 countries. The product offering covers a wide range of areas including incontinence products, feminine care products, baby diapers, wound care, compression therapy and orthopedics, professional hygiene, toilet paper and paper towels. Sales are made under own brands, of which several are global leaders, as well as under retailers’ private labels. Essity has a strong brand portfolio with globally leading brands, such as TENA and Tork, and other brands such as JOBST, Leukoplast, Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa. The company has a strong position in many emerging markets, including China, Latin America and Russia.

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Active ownership in practice

In its capacity as a long-term active owner, Industrivärden engages itself in the portfolio companies’ strategic development. Against the backdrop of the Company’s business model, this concerns mainly matters pertaining to the portfolio companies’ boards and management teams, financial development and matters such as strategy, market position, efficiency, capital structure and more. Following are a few examples of important corporate governance matters and significant strategic activities for long-term value creation that the respective portfolio companies have taken in recent years, where Industrivärden has played an active role through work on the board and nomination committees.

Value-creating measures

  • Formation of company in 2017 through refinement and split of former SCA Group into two listed companies, with stronger focus on core businesses
  • Election of Pär Boman as Chairman in 2016
  • Numerous new directors elected to board
  • Appointment of Magnus Groth as CEO in 2016
  • Establishment of new business area through acquisition of BSN medical, active in wound care and compression therapy
  • Structural measures for higher cost- and capital efficiency
  • Stronger innovation and sustainability focus with distinct focus on highly integrated sustainability work with lifecycle effects as key part of innovation process. Ambitious targets set to reduce carbon footprint and develop new solutions for a circular society 
  • Adoption of new financial targets

Result

  • Clear cost reductions and improved result
  • Stronger platform for value-creating growth

 

Last update: 26 Apr 2021