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Essity

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Essity AB
Company typeAktiebolag
Nasdaq Stockholm:ESSITY A,ESSITY B
ISIN
IndustryConsumer goods
PredecessorSCA
FoundedJune 15, 2017;7 years ago(2017-06-15)
Headquarters
Stockholm
,
Sweden
Area served
Worldwide
Key people
Jan Gurander (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)
Footnotes / references
reports.essity.com/2019/annual-and-sustainability-report/essity-data/financial-multi-year-summary.html

Essity ABis a Swedish hygiene and health company, with its headquarters inStockholm, Sweden.The products portfolio contains one-use products such astissue paper,baby diapers,feminine care(menstruation pads, etc.),incontinence products,compression therapy,orthopedicsandwound care.Essity was a part of the hygiene andforest productscompanySCAuntil 2017, when the company spun off the hygiene operations that became listed as a separate company onNasdaq Stockholm.

Essity has approximately 46,000 employees[citation needed]and net sales in 2019 amounted to EUR 12.2 billion.[3]The nameEssitystems from the wordsessentialsandnecessity.

History

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Essity was formerly a part of the SCA group.[4]

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

Zellstofffabrik Waldhof inMannheim,origin of PWA and the Zewa brand

In 1995 they acquired the German paper and packaging company PWA, Papierwerke Waldhof-Aschaffenburg.

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 fromInternational Paper.

In 2007,Procter & Gamblesold their European tissue business to SCA for €512 million ($672 million).[5]

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

In 2011, it acquired the Brazilian Pro Descart for aboutR$114 million, 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 brandsTENAandTork.

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

In 2013 SCA became majority shareholder inVinda.[6]

In 2015, SCA was the largest producer of tissue paper in the world.[7]

In August 2015 it was announced that SCA's hygiene operations and forestry operations were to be divided into two different divisions. A year later, 24 August 2016, the company announced that it intended to split the SCA into two separately 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 €2740 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 on the Stock Exchange in Stockholm on June 15, 2017.[8]

At the General Annual Meeting 2024 Essity appointed Jan Gurander as new Chairman.[9]

Brands

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Competitors

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Essity is amongst the top 50 largestfast-moving consumer goodscompanies in the world[14]and some of its competitors areUnilever,Procter & Gamble,Georgia-Pacific,Kimberly-Clark,Sofidel,Unicharm Ontex,CMPC,Santher and3M.[15]

Sustainability messaging

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Several initiatives have been launched to influence messaging around the sustainability of the Essity business model:

  • A science-based target for emissions reduction in line with climate science was approved in 2018.[16]
  • The company has qualified for inclusion in both theDow Jones Sustainability World IndexandSustainability Europe Index,and has also been named industry leader in the household products sector.[17]
  • Company representatives participate in theEllen MacArthur Foundation's "New Plastics Economy" initiative[18]and have 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.[19]

Criticism

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Along with its supplier SCA, Essity was accused byGreenpeaceof promoting unsustainable business practices aggravatingglobal warmingandmass 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".[20]

In late August 2022, Essity announced their intention to suelockedoutstriking workers at a paper-mill inKawerau,New Zealand, for ~NZ$580,000 because they began their strike an hour earlier than stated.[21]Thestrikebegan in early August over a pay dispute, and involved 145 workers.[22]

References

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  1. ^"ESSITY A - Nasdaq Nordic".Retrieved4 October2023.
  2. ^"ESSITY B - Nasdaq Nordic".Retrieved4 October2023.
  3. ^Morris, Helen (2020-01-27)."Essity reports 8.8% net sales increase".Tissue World Magazine.Retrieved2020-05-25.
  4. ^"Essity Listed on Nasdaq Stockholm".Nonwovens Industry Magazine - News, Markets & Analysis for the Nonwovens Industry.Retrieved2019-12-17.
  5. ^"P&G sells European tissue unit to Sweden's SCA".Reuters.2007-03-12.Retrieved2018-01-09.
  6. ^"SCA to bid for control of Chinese tissue maker Vinda".Reuters.2013-09-09.Retrieved2019-12-17.
  7. ^"Is tissue becoming a safe haven for the global pulp and paper industry? Global paper and board industry is in transition".paperindustryworld. 2015.
  8. ^"SCA to become two listed companies: the forest products company SCA and the hygiene and health company Essity".SCA. 2017. Archived fromthe originalon 2017-06-23.Retrieved2017-01-09.
  9. ^"Minutes from Essity's 2024 Annual General Meeting".2024-03-21.{{cite web}}:CS1 maint: url-status (link)
  10. ^"Charmin rebrands to Cushelle".Mad.co.uk. January 25, 2010.
  11. ^"JOBST Global".www.jobst.com.
  12. ^"Leukoplast Global".www.leukoplast.com.
  13. ^"Tork is part of Essity - Tork US".www.torkusa.com.
  14. ^"The 50 largest FMCG / consumer goods companies in the world".24 September 2018.Retrieved2019-06-11.
  15. ^"Sweden's Essity delivers on profit with price hikes, cost cuts".CNBC.Retrieved2019-06-11.[permanent dead link]
  16. ^"Science Based Targets".Retrieved2019-06-10.
  17. ^"Robecosam Industry Leader Report | 2018"(PDF).Retrieved2019-06-10.
  18. ^"Global Commitment Signatories".New Plastic Economu.Retrieved2020-05-25.
  19. ^"Essity Annual and Sustainability Report 2019".Retrieved2020-05-25.
  20. ^Glienicke, Angela (28 September 2017)."In pictures: the Great Northern Forest – beauty and destruction".Greenpeace UK.Retrieved7 January2020.
  21. ^"Locked-out Purex employees threatened with $500,000 fine after strike".NZ Herald.Retrieved2022-08-30.
  22. ^Carroll, Melanie (2022-08-29)."Purex manufacturer makes $500k legal threat against workers, union says".Stuff.Retrieved2022-08-30.
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