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Swedish company Essity expects annual organic sales growth of over 3%

18 Jun '24

2 min read

Swedish company Essity expects annual organic sales growth of over 3%

Pic: Essity

Insights

Essity has revised its targets, now aiming for annual organic sales growth of over 3 per cent, excluding acquisitions.
The emphasis is on profitable expansion with a target EBITA margin exceeding 15 per cent, reflecting a focus on improving profitability.
These adjustments align with Essity's strategy to strengthen its position in growing markets.

Hygiene and health company Essity’s new target is annual organic sales growth of more than 3 per cent, as per the company’s new financial targets based on the company’s portfolio following the divestment of the subsidiary Vinda. The previous target was an annual sales growth of more than 5 per cent, which included organic sales growth of more than 3 per cent and acquisitions of approximately 2 per cent. Acquisitions remain part of the company’s strategy but are no longer included in the annual growth target.

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 an EBITA margin, excluding items affecting comparability (IAC), of more than 15 per cent. The previous target was return on capital employed (ROCE) excluding IAC of more than 17 per cent by 2025, corresponding to an EBITA margin excluding IAC of approximately 13.5 per cent, the company said in a press release.

“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 cent per year, even without Vinda, while also reporting higher and more stable margins. Favourable 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,” said Magnus Groth, president and CEO of Essity

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