Home / News / Sweden’s Essity’s net sales grow 28.2% to SEK 156,173 mn in FY22

Sweden's Essity's net sales grow 28.2% to SEK 156,173 mn in FY22

31 Jan '23
2 min read
Pic: Essity
Pic: Essity

Sweden-based global hygiene and health company Essity has reported 28.2 per cent year-on-year (YoY) growth in net sales to Swedish krona (SEK) 156,173 million (approximately $15,010 million) in fiscal 2022 (FY22). The company’s sales growth, including organic sales growth and acquisitions, amounted to 17.7 per cent. Adjusted EBITA amounted to SEK 13,058 million and the adjusted EBITA margin to 8.4 per cent.

Sales growth was strong in all three business areas: health and medical, consumer goods, and professional hygiene. Despite significant price increases, volumes were higher for the year, Essity said in a press release.

The company’s adjusted return on capital employed in FY22 was 9.7 per cent, while the earnings per share were SEK 7.93.

In FY22, Essity’s e-commerce sales increased by 20 per cent to SEK 23 billion, corresponding to 15 per cent of net sales. The company’s direct-to-consumer sales also increased through investments and acquisitions.

In the fourth quarter of FY22, net sales increased significantly and amounted to approximately SEK 44 billion. Further price increases were implemented and averaged 18.4 per cent, an increase of 6 per cent compared with the third quarter of FY22. Adjusted EBITA increased 33 per cent and the adjusted EBITA margin increased 0.3 of a percentage point to 9.3 per cent. Compared with the third quarter of FY22, the adjusted EBITA margin increased 1.8 percentage points. The adjusted return on capital employed increased to 11.4 per cent.

Essity launched toilet paper containing wheat straw-based pulp under the Zewa brand and the Libero Touch climate-smart baby diaper. The company’s carbon emissions under science-based targets, Scope 1 and 2, reduced by 18 per cent compared with 2016.

For FY23, growth in the fastest growing sales channels and regions as well as in segments with the highest returns will be prioritised to create long-term growth in value for customers and consumers.

Fibre2Fashion News Desk (DP)

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