Essity's New Business Structure Set to Drive Growth
Essity is excited to announce a significant change in its organizational framework which will take effect from January 1, 2026. The company will realign its business segments into four main areas: Health & Medical, Personal Care, Consumer Tissue, and Professional Hygiene. This strategic shift is aimed at enhancing growth and ensuring that Essity can meet its financial targets more effectively.
Details of the New Business Areas
The restructure will replace the previous categories, which included Health & Medical, Consumer Goods, and Professional Hygiene. This new framework reflects the company’s commitment to boosting agility and responsiveness in the marketplace.
Health & Medical
This newly defined area covers a variety of essential products including incontinence products and advanced medical solutions. Under the renowned brand TENA, Essity leads the market in providing high-quality incontinence products. Furthermore, it includes specialized items in wound care, compression therapy, and orthopedics. Esteemed brands such as Leukoplast, Cutimed, JOBST, Actimove, and Delta-Cast also fall under this category.
Personal Care
The Personal Care segment encompasses a range of products, including incontinence solutions, feminine care, and baby products. TENA continues its strong presence in the incontinence market, while feminine care products and baby diapers and items are marketed under brands like Libresse, Nosotras, Saba, Knix, and Libero. This diversified offering is tailored to meet the specific needs of consumers globally.
Consumer Tissue
The Consumer Tissue section consists of essential home paper products such as toilet paper and household towels. Leading brands like Lotus, Tempo, Zewa, Cushelle, and Plenty dominate this sector, ensuring that consumers have access to high-quality tissue products. This adjustment in organization aims to better address the needs of the markets served.
Professional Hygiene
This area focuses on providing comprehensive hygiene solutions, which include not only paper products but also hand soaps, lotions, sanitizers, and digital solutions for businesses. The Tork brand stands at the forefront, supplying high-quality hygiene products and services to enhance safety and cleanliness in workplaces.
Proforma Financial Reporting
Essity has also released its proforma financial results, which reflect the changes to its reporting structure as it transitions into the new business model. This includes insights into net sales, organic sales growth, and other key performance indicators. The proforma reports for the years leading to 2023 have been reformulated to provide stakeholders with a clear picture of the anticipated financial trajectory.
In the forthcoming reports, Essity will showcase important metrics including gross margins, operating profits, and capital employed presented in a manner that aligns with the new business structure. This initiative is geared towards ensuring transparent and effective communication with investors and stakeholders alike.
Conclusion and Contacts
Essity’s recent restructuring of its business framework is seen as a monumental step toward achieving enhanced growth and financial success. The company remains steadfast in its goal to adapt and respond to the ever-evolving demands of the market and consumers. For more information, please contact:
Sandra Åberg, Vice President Investor Relations, Tel: +46 70 564 96 89
Per Lorentz, Vice President Corporate Communications, Tel: +46 73 313 30 55
Frequently Asked Questions
What are the new business areas of Essity?
Essity has restructured its business into four areas: Health & Medical, Personal Care, Consumer Tissue, and Professional Hygiene.
When will the new structure take effect?
The new business structure will take effect from January 1, 2026.
What does the Health & Medical segment include?
The Health & Medical segment includes incontinence products, wound care, compression therapy, and orthopedics.
How does the restructuring influence financial reporting?
Essity will report under this new structure starting from the interim report for Q1 2026, with past proforma financial reports adjusting accordingly.
Who can I contact for further information?
For inquiries, you can reach Sandra Åberg or Per Lorentz whose contact details are provided above.
