Sweden's Essity enters health, consumer goods & hygiene sector

The new business areas are aligned with the company’s customer and sales channels and will lead to an expansion of the offerings to new and adjacent categories as well as extended service content on the basis of customer and consumer needs. The new areas support the company’s new growth target through strategies for organic and acquisition-driven growth and aim to achieve higher growth and profit margins as well as less capital tied up. The business areas will replace the current business areas personal care, consumer tissue, and professional hygiene, Essity said in a media statement.

The new growth target is to achieve sales growth of more than 5 per cent. This replaces the previous target of organic sales growth of more than 3 per cent. The target will be reached through the continued implementation of Essity’s strategy: leveraging favourable market trends, increasing market shares through successful innovation and strong brands, expanding the offering and acquisitions in categories with high margins. Growth, both organic and through acquisitions, is prioritised in the medical solutions, incontinence products, feminine care and professional hygiene product categories. 

The health and medical encompasses the incontinence products health care and medical solutions categories. The offering includes incontinence products, wound care, compression therapy, orthopaedics, skincare products and digital solutions with sensor technology under brands such as Tena, Leukoplast, Cutimed, Jobst, Actimove, and Delta-Cast. Distribution channels for the products are pharmacies, medical devices stores, hospitals, distributors, and care institutions as well as online.

Consumer goods includes the categories of incontinence products retail, baby care, feminine care, and consumer tissue. The offering includes incontinence products, pads, diapers, wet wipes, skincare products, intimate soaps, washable absorbent underwear, menstrual cups, toilet paper, household towels, handkerchiefs, facial tissues and napkins. Products are sold under brands such as the globally leading Tena brand and other strong brands including Libero, Libresse, Nosotras, Saba, Tom Organic, Lotus, Regio, Tempo and Vinda. Distribution channels for the products are the retail trade and online, according to Essity.

Professional Hygiene comprises complete hygiene solutions, including toilet paper, paper hand towels, napkins, hand soap, hand lotion, hand sanitizers, dispensers, cleaning and wiping products as well as service and maintenance under the globally leading Tork brand. Essity also offers digital solutions, such as Internet of Things sensor technology, enabling data-driven cleaning. Customers consist of companies and office buildings, universities, healthcare facilities, industries, restaurants, hotels, stadiums and other public venues. Distribution channels for the products consist of distributors and online.

Fibre2Fashion News Desk (GK)