Essity has announced the launch of a strategic review of its global consumer tissue operations as part of its ongoing portfolio evaluation process aimed at enhancing long-term value creation.
The decision, approved by the company’s Board of Directors, will assess several strategic alternatives for the business area, including a potential separation of the division. However, the company emphasized that no final decision has been made at this stage.
According to Essity, the review seeks to create the best possible conditions for the consumer tissue business to reach its full potential while contributing more effectively to the Group’s overall performance.
In remarks shared by Ulrika Kolsrud, President and Chief Executive Officer, the executive highlighted that the business holds a strong portfolio of proprietary, retailer and private-label brands, supported by leading market positions and an efficient supply chain.
She stated that the process is part of Essity’s broader portfolio optimization strategy and is intended to assess ownership alternatives that could maximize value creation.
In 2025, the division generated net sales of SEK 43.537 billion, representing 31% of the Group’s total net sales. EBITA excluding items affecting comparability reached SEK 5.187 billion, with an EBITA margin of 11.9% and a return on capital employed of 14.7%.
The business includes well-known brands such as Lotus, Tempo, Zewa, Cushelle, Plenty, Regio and Familia, as well as private-label manufacturing operations. Essity currently holds the leading market position in Europe and ranks as the second-largest player in Latin America.
The division employs approximately 13,000 people and operates 29 production facilities worldwide.
Further details are expected to be presented during the company’s Capital Markets Day scheduled for May 7.
