Essity presents new financial targets

Essity plant in Mannheim, Germany. Photo: Commons

Hygiene and health company Essity is today presenting new financial targets based on the company’s portfolio following the divestment of the subsidiary Vinda. The new targets are an increase in ambition with an emphasis on profitable growth and are based on the company’s robust platform with leading positions in growing and attractive markets. 

Essity’s new target is annual organic sales growth of more than 3%. The previous target was an annual sales growth of more than 5%, which included organic sales growth of more than 3% and acquisitions of approximately 2%. Acquisitions remain part of the company’s strategy but are no longer included in the annual growth target. 

Essity’s new target is an EBITA margin, excluding items affecting comparability (IAC), of more than 15%. The previous target was return on capital employed (ROCE) excluding IAC of more than 17% by 2025, corresponding to an EBITA margin excluding IAC of approximately 13.5%.

“Essity is in better shape than ever and is now further raising its level of ambition. Our aim is to grow organically by more than 3% per year, even without Vinda, while also reporting higher and more stable margins. Favorable market trends combined with Essity’s successful innovations, strong brands and efficiency initiatives provide us with the platform to gain market shares and improve the company’s profitability,” says Magnus Groth, President and CEO of Essity.