Essity Revamps Business Segments for Growth
Essity is set to implement an organizational change starting from January 1, 2026. The company's new business areas will consist of Health & Medical, Personal Care, Consumer Tissue, and Professional Hygiene. This shift aims to accelerate growth and help the company meet its financial objectives more effectively.
Overview of New Business Areas
Health & Medical
The Health & Medical division will encompass incontinence products and medical solutions. This includes renowned products under the TENA brand and other healthcare essentials like wound care and orthopedic items from established brands such as Leukoplast, Cutimed, JOBST, and Delta-Cast.
Personal Care
Personal Care will cover a variety of products such as incontinence items for retail, feminine care products, and baby care. The division will showcase well-known brands including Libresse, Nosotras, Saba, and Libero, catering to both adult and baby care needs.
Consumer Tissue
This segment will focus on everyday tissue products, including toilet paper and household towels. Brands under this category include Lotus, Tempo, Cushelle, and Plenty. The aim is to meet consumer demand for quality and reliable household essentials.
Professional Hygiene
The Professional Hygiene area will provide complete hygiene solutions to businesses, including products like paper towels and hand sanitizers under the Tork brand. This sector aims to serve industries needing consistent and high-quality hygiene products.
Financial Reporting – Proforma Analysis
Essity’s proforma financial reports will offer insights into the performance of the new business segments starting from quarter 1 of 2026. The newly structured financial reporting will detail net sales, organic sales growth, gross margin excluding items affecting comparability (IAC), and earnings before interest, taxes, and amortization (EBITA) among other key performance indicators.
Projected Financial Performance
The management expects these changes to reflect positively in financial results, with a focus on a sustainable growth trajectory. The anticipated net sales and EBITA figures for the upcoming years indicate a promising outlook for the revamped organization.
Capital Employed and Operating Cash Flow
Essity will report details on capital employed across its business segments and highlight operating cash flow, providing stakeholders with a comprehensive view of financial health and operational efficiency.
Future Outlook
With these changes, Essity is poised to enhance its market competitiveness. This strategic reorganization is not only aimed at catering to the evolving needs of consumers but also at positioning Essity as a leader in the personal and professional hygiene industries.
Contact Information
For further inquiries, individuals can reach out to Sandra Åberg, Vice President Investor Relations, at +46 70 564 96 89, or via email at sandra.aberg@essity.com. Additionally, Per Lorentz, Vice President Corporate Communications, is available at +46 73 313 30 55, or at per.lorentz@essity.com.
Frequently Asked Questions
What are the new business segments of Essity?
Essity's new business segments include Health & Medical, Personal Care, Consumer Tissue, and Professional Hygiene.
When will the new reporting structure take effect?
The new organization structure will take effect from January 1, 2026.
How does the restructuring benefit the company?
The restructuring is designed to accelerate growth and enhance operational efficiency, allowing for quicker adaptation to market changes.
What is meant by proforma financial reporting?
Proforma financial reporting involves adjusting current financial reports to reflect the anticipated performance of the new business structure, giving a clearer picture of potential earnings.
Who can I contact for more information about Essity's changes?
For inquiries regarding the changes, you can contact Sandra Åberg or Per Lorentz using the provided contact details.
