Essity's New Business Structure: An Introduction
Effective from January 1, 2026, Essity will implement a new business structure that includes the categories of Health & Medical, Personal Care, Consumer Tissue, and Professional Hygiene. These changes aim to accelerate growth and enhance financial performance. The decision to restructure was driven by the need to adapt to market demands and to drive attainability for financial targets.
Understanding the New Business Areas
Health & Medical
The Health & Medical sector includes Incontinence Products, Health Care, and Medical Solutions. Noteworthy brands like TENA lead the incontinence product market, while additional products for wound care and orthopedics are provided under brands such as Leukoplast, JOBST, and Actimove.
Personal Care
This area includes Incontinence Products Retail, Feminine Care, and Baby Care offerings. With brands like TENA and Libresse, the Personal Care segment encompasses a variety of products like pads, menstrual cups, and baby diapers. This category is crucial for addressing personal hygiene needs effectively.
Consumer Tissue
The Consumer Tissue category consists of essentials like toilet paper, paper towels, and facial tissues. Brands such as Lotus and Tempo are prominent in this sector, serving both retail and wholesale markets. The focus is on quality and sustainability in product offerings.
Professional Hygiene
Professional Hygiene provides a comprehensive range of hygiene solutions, including dispensers, hand soaps, and cleaning products. Tork, a global leader in professional hygiene, offers robust solutions for businesses aiming to maintain cleanliness and health standards in their environments.
Financial Reporting and Proforma Improvements
Essity’s financial reporting adheres to the new structures starting with the interim report for the first quarter of 2026. Noteworthy metrics will include net sales, organic sales growth, and EBITA margins across the new business segments. This restructuring aligns financial reporting with the evolving business landscape while maintaining transparency for stakeholders.
What's Next for Essity?
The adaptation of this new structure will set the stage for Essity to assess and redefine its approach moving forward. With sharper focus areas, the company aims to enhance its performance metrics effectively and continue serving its global customer base with quality products.
Frequently Asked Questions
Why is Essity restructuring its business areas?
Essity is restructuring to facilitate growth, adapt to market changes, and improve its financial performance. This approach allows for a more streamlined strategy that targets customer needs effectively.
What are the main categories in Essity's new business structure?
The new structure will include Health & Medical, Personal Care, Consumer Tissue, and Professional Hygiene. Each area is designed to cater to specific market needs.
When will the new reporting structure take effect?
Essity will officially report under the new structure starting with the interim report for the first quarter of 2026.
How will the changes affect product offerings?
The restructuring aims to enhance product offerings by aligning them more closely with consumer demands and market trends, ensuring that all categories meet high standards of quality and sustainability.
What message does Essity want to communicate with this change?
Essity aims to emphasize its commitment to health and hygiene through innovative solutions that address consumer needs while driving operational efficiency in its business model.
