Essity

Essity AB is a global hygiene and health company, with its headquarters in Stockholm, Sweden. The products portfolio contains one-use products such as tissue paper, baby diapers, feminine care (menstruation pads etc.), incontinence products, compression therapy, orthopedics and wound care. Essity was a part of the hygiene and forest products company SCA until 2017, when the company spun off the hygiene operations that became listed as a separate company on Nasdaq Stockholm.

Essity AB
Aktiebolag
Traded asNasdaq Stockholm: ESSITY A, ESSITY B
ISINSE0009922164 
IndustryConsumer goods
FoundedJune 15, 2017
Headquarters,
Area served
Worldwide
Key people
Pär Boman (Chairman) Magnus Groth (CEO)
ProductsPersonal Care, Consumer Tissue, Professional Hygiene
RevenueSEKm 128,975 (2019)
SEKm 14,349 (2019)
Total assetsSEKm 162,295 (2019)
Total equitySEKm 54,125 (2019)
Number of employees
46 000 (2019)
Websitewww.essity.com/ 
Footnotes / references
http://reports.essity.com/2019/annual-and-sustainability-report/essity-data/financial-multi-year-summary.html

Essity has approximately 46 000 employees and net sales in 2019 amounted to EUR 12.2 billion.[1] The name Essity stems from the words 'Essentials' and 'Necessity'.

History

Essity is formerly a part of the SCA group.[2]

SCA was founded in 1929 as a forestry company. In 1975, SCA acquired Mölnlycke AB, a western European producer of disposable hygiene products.

In 1995 they acquired the German paper and packaging company PWA.

In 2001 the division Wisconsin Tissue of the United States company Georgia-Pacific Tissue was acquired.

In 2004 SCA acquired the tissue and hygiene products businesses of Carter Holt Harvey from International Paper.

In 2007, Procter & Gamble sold their European tissue business to SCA for EUR 512 million ($672 million).[3]

In 2007 SCA acquired its first minority share in the Asian tissue company Vinda.

In 2011, it acquired the Brazilian Pro Descart for about R $ 114 million reais, with local brands "Biofral" and "Drybaby". Later, it invested R $ 242 million in a plant in Jarinu, in the interior of São Paulo, consolidating the brands TENA and Tork.

In July 2012, the acquisition of Georgia Pacific's tissue operations, including the brand Lotus, was closed. The total price amounted to EUR 1.32 billion.

In 2013 SCA became majority shareholder in Vinda.[4]

In 2015, SCA was the largest producer of tissue paper in the world.[5]

In August 2015 it was announced that SCA's hygiene operations and forestry operations will be divided into two different divisions. A year later, 24 August 2016, the company announced that it intended to split the SCA in two listed companies.

In December 2016 SCA announced the acquisition of BSN Medical, a company specializing in the areas of Compression Therapy, Wound Care and Orthopaedics. The purchase price amounted to EUR 2 740 million and included brands such as Jobst, Leukoplast, Cutimed, Delta Cast and Actimove.

In 2017, SCA split off Essity as a separate company, and Essity listed at the Stock Exchange in Stockholm on June 15, 2017.[6]

Brands

Competitors

Essity is amongst the top 50 largest FMCG/Consumer goods companies in the world[11] and some of its competitors are Unilever, Procter & Gamble, Georgia-Pacific, Kimberly-Clark, Sofidel, Unicharm Ontex,CMPC, Santher and 3M.[12]

Sustainability

Essity has, as of December 2018, had its Science-Based Target for its emissions reduction in line with climate science approved.[13]

Essity has qualified for inclusion in both the Dow Jones Sustainability World Index and the Dow Jones Sustainability Europe Index, and has also been named industry leader in the Household Products sector.[14]

Essity's is an active member within the Ellen MacArthur Foundation's plastics initiative “New Plastic Economy” [15] and has committed to sustainability targets for packaging, for example that 85% of the company's packaging is to be manufactured from renewable or recycled material by 2025 [16].

Criticism

Along with its supplier SCA, Essity was accused by Greenpeace of promoting unsustainable business practices aggravating Global warming and mass extinction. Greenpeace claim that Essity "clearcuts some of Sweden’s last remaining old-growth forests, wiping away habitats of threatened species and endangering the livelihood of indigenous communities".[17]

References

  1. Morris, Helen (2020-01-27). "Essity reports 8.8% net sales increase". Tissue World Magazine. Retrieved 2020-05-25.
  2. "Essity Listed on Nasdaq Stockholm". Nonwovens Industry Magazine - News, Markets & Analysis for the Nonwovens Industry. Retrieved 2019-12-17.
  3. "P&G sells European tissue unit to Sweden's SCA". Reuters. 2007-03-12. Retrieved 2018-01-09.
  4. "SCA to bid for control of Chinese tissue maker Vinda". Reuters. 2013-09-09. Retrieved 2019-12-17.
  5. "Is tissue becoming a safe haven for the global pulp and paper industry? Global paper and board industry is in transition". paperindustryworld. 2015.
  6. "SCA to become two listed companies: the forest products company SCA and the hygiene and health company Essity". SCA. 2017. Retrieved 2017-01-09.
  7. "JOBST Global". www.jobst.com.
  8. "Leukoplast Global". www.leukoplast.com.
  9. "Tork is part of Essity - Tork US". www.torkusa.com.
  10. "Charmin rebrands to Cushelle". Mad.co.uk. January 25, 2010.
  11. "The 50 largest FMCG / consumer goods companies in the world". Retrieved 2019-06-11.
  12. "Sweden's Essity delivers on profit with price hikes, cost cuts". Retrieved 2019-06-11.
  13. "Science Based Targets". Retrieved 2019-06-10.
  14. "Robecosam Industry Leader Report | 2018" (PDF). Retrieved 2019-06-10.
  15. "Global Commitment Signatories". New Plastic Economu. Retrieved 2020-05-25.
  16. "Essity Annual and Sustainability Report 2019". Retrieved 2020-05-25.
  17. Glienicke, Angela (28 September 2017). "In pictures: the Great Northern Forest – beauty and destruction". Greenpeace UK. Retrieved 7 January 2020.
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