Essity reported last Friday, 22nd, an increase in the third-quarter earnings, which returned to pre-pandemic levels. According to the company, the easing of restrictions on the pandemic and the growing awareness of consumers about the importance of hygiene helped drive the results.
The company reported operating profit of SEK 3.9 billion ($451 million) for July-September, up from SEK 3.8 billion a year earlier. Sales increased 9% in the quarter, with an increase of 7% in organic sales.
Analysts interviewed by Refinitiv estimated an average profit of SEK 3.4 billion. Compared to the pre-pandemic third quarter of 2019, profit was unchanged, while organic sales increased by 2%.
A global leader in Tork branded toiletries and TENA incontinence products, Essity announced a net sales growth target of more than 5% for next year – the previous target was organic growth of more than 3%.
To achieve this goal, Essity will continue to implement its strategy, which consists of leveraging favorable market trends, increasing market share through successful innovations and strong brands, and expanding offering and acquisitions in high-margin categories.
In addition, the company announced that it will operate in new business areas as of January 2022, in the Health and Medicine, Consumer Goods and Professional Hygiene segments. These areas are aligned with the company’s sales and customer channels and will lead to an expansion of offerings into new and adjacent categories.
As such, they support Essity’s new expansion goal through organic and acquisition-driven growth strategies. The business areas will replace the current Personal Care, Consumer Tissue and Professional Hygiene business areas.