Demand for Consumer Tissue has been positively impacted; Essity said that Covid-19 may lead to increased demand for its leading hygiene and health products

Essity has said its third quarter sales were negatively impacted by Covid-19 and the related lockdowns but added that demand for Consumer Tissue has been positively impacted.  

During 1 January 2020 – 30 September 2020, compared with the same period a year ago net sales declined 4.7% to SEK90,796m and organic net sales also declined 2.4%. 

Emerging markets accounted for 36% of net sales and organic net sales increased 1.2%. 

Operating profit before EBITA increased 27% to SEK13,177m, while profit for the period increased 22% to SEK8,718m.   

Organic net sales declined 5.1%, although the group’s online sales increased due to strong growth in Personal Care and Consumer Tissue.  

Organic net sales in mature markets declined 7.7% while in emerging markets, which accounted for 36% of net sales, organic net sales decreased 0.8% 

The company said structural profitability in its Consumer Tissue sector has increased mainly as a consequence of a higher share of own brands, a focus on growth in segments with high margins, successful innovations and more efficient production.  

In Professional Hygiene, Essity said an increased awareness of the importance of hygiene and health is eventually expected to result in rising demand. 

A digital transformation – expected to amount to SEK2.6bn – will also be accelerated in the years ahead.  

Following the outbreak of Covid-19, the company’s Professional Hygiene’s customer segments has been negatively affected by the lockdowns.  

However, sales of dispensers have increased, a result of a greater focus on hygiene as many customers replaced air dryers to offer a more hygienic alternative. 

Demand for Consumer Tissue has been positively impacted, which has led to temporarily lower consumption for Personal Care.  

Eventually, the company said that Covid-19 may lead to increased demand for the company’s hygiene and health products as a result of increased awareness of the importance of hygiene and health.