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Sweden's Essity's net sales climb 27.8% in H1 FY22

23 Jul '22

2 min read

Pic: Essity

The net sales of Essity has increased 27.8 per cent to SEK 72,230 million (56,496) in the first half (H1) of fiscal 2022. Sales growth, including organic sales growth and acquisitions, amounted to 19.0 per cent. Organic sales growth, excluding exchange rate effects, acquisitions and divestments, was 16.3 per cent, of which volume accounted for 5.5 per cent.

Price increases were implemented and further increases will be carried out in the second half of 2022. The company’s assets in Russia have been impaired by approximately SEK 1.6 billion. Furthermore, work has been initiated to exit the Russian market, the company said in its half-year report 2022.

“In a turbulent world, Essity stands strong. We have further strengthened the company through significant price increases, successful product launches, increased productivity and leading sustainability work. In July, we announced the acquisition of two companies in leakproof apparel to become the fastest growing company in intimate hygiene,” Magnus Groth, president and CEO, said.

“We offset a large share of this through significantly higher selling prices, a better mix and higher volumes. We also continued to improve productivity through increased efficiency in our production facilities, material rationalisations and digitalisation of processes. Our efficiency efforts are continuing at a high pace but the reported cost savings were negatively impacted by high cost inflation and the net outcome for the quarter is therefore negative. Sales and marketing costs were higher during the quarter but decreased as a share of net sales. The adjusted return on capital employed was 9.6 per cent. Adjusted earnings per share increased to SEK 2.97 and earnings per share amounted to SEK 2.11. Cash flow from current operations amounted to SEK 1,225 million,” explained Groth.

Fibre2Fashion News Desk (RR)