The company also advanced its sustainability goals, with its net zero target by 2050 validated by the science-based targets initiative, updating scope 3 emission reduction targets to 35 per cent by 2030.
Essity has reported SEK 146 billion (~$13.87 billion) in net sales for 2024, with its highest-ever profit of over SEK 20 billion (~$1.9 billion) and a 14 per cent margin.
Strong performance in incontinence products, medical solutions, and professional hygiene drove growth.
The company prioritised innovation, sustainability, and digitalisation, with a net zero target by 2050.
Operating in a growing market driven by demographic shifts, higher living standards, and increased awareness of hygiene and health, the company holds leading positions, with strong brands such as Tork and TENA dominating 90 per cent of branded sales. Essity’s strategy focuses on high-return product segments, expanding in North and Latin America, and achieving profitable growth through innovation and restructuring, Essity said in a financial statement.
The company’s divestment in the Asian hygiene company Vinda marked a shift towards a higher-margin, lower-volatility portfolio.
Earnings per share (EPS) for the year rose by 27 per cent, cash flow remained robust, and the board proposed a 6.5 per cent dividend increase to SEK 8.25 per share.
In 2024, Essity’s net sales were primarily driven by Europe, which accounted for 60 per cent, followed by North America and Latin America at 17 per cent each, while Asia contributed 2 per cent and other regions 4 per cent.
By business area, consumer goods led with 54 per cent of net sales, followed by professional hygiene at 26 per cent and health and medical at 20 per cent. In terms of EBITA excluding items affecting comparability (IAC), consumer goods contributed 44 per cent, professional hygiene 31 per cent, and health and medical 25 per cent.
Among product categories, consumer tissue was the largest, representing 32 per cent of net sales, followed by professional hygiene at 26 per cent, incontinence products health care at 12 per cent, feminine care at 9 per cent, incontinence products retail and medical solutions at 8 per cent each, and baby care at 5 per cent.
Region-wise, US was Essity’s largest individual market, accounting for 14 per cent of net sales, followed by Germany at 12 per cent, and the UK, Mexico, and France at 8 per cent each. Spain contributed 6 per cent, while the Netherlands, Colombia, Italy, and Canada each accounted for 3–4 per cent. Other markets made up the remaining 31 per cent of net sales.
“Our efforts to accelerate profitable growth have yielded results, and we grew strongly during the year in several of our most profitable categories and gained market shares. The full-year profit was the highest ever for Essity. Essity is in better shape than ever and based on the profitable platform we have created over several years of working on structural improvements, we launched new, more ambitious financial targets during the year,” said Magnus Growth, president and chief executive officer (CEO) at Essity. “We also launched a share buyback program. Our efforts to accelerate profitable growth have yielded results, and we grew strongly during the year in several of our most profitable categories and gained market shares.”
Awareness of hygiene and self-care has increased post COVID-19, driving demand for preventive solutions. The rise of antimicrobial resistance (AMR) further highlights the need for improved hygiene measures. Growing access to healthcare in emerging markets and preventive spending in mature economies are boosting demand for Essity’s products in medical, self-care, and preventive care.
Digitalisation is transforming consumer interactions and business operations. Essity is leveraging AI and other technologies to enhance efficiency and innovation. The company has established an AI council and invests in AI literacy training to drive performance while ensuring compliance.
Fibre2Fashion News Desk (SG)
