Essity reports “more favourable market conditions” in Q2 results

Essity has said “more favourable market conditions” resulted in strong sales growth in its second quarter results. 

Organic net sales rose 9.5% compared to the same period a year ago, with volume accounting for 9.9% of the rise and price/mix for -0.4%. 

The gradual sales increase during the quarter was said to be due to the growing awareness of the importance of hygiene and health following the outbreak of Covid-19. 

Organic net sales in mature markets increased 9.0%, while emerging markets accounted for 38% of net sales and recorded an organic net sales increase of 9.1%. 

Essity’s Personal Care and Professional Hygiene noted “highly favourable” organic sales growth during the second quarter of 2021 compared with the second quarter of 2020. 

In Personal Care and Consumer Tissue, sales were at a higher level than in the second quarter of 2019. 

However, in its half year report organic net sales were negatively impacted by the Covid-19 pandemic and declined 1.0%. 

Net sales for the six month period declined 9.1% to SEK 56,496m, compared with SEK 62,119m for the same period a year earlier. 

During the past 12 months, Essity has also increased market shares for more than 60% of branded sales in the retail trade through product launches, marketing campaigns and a strengthened presence in digital sales channels. 

Increased e-commerce sales organically by 13.3% to about 14% of net sales, corresponding to approximately SEK 4bn. 

It announced price increases in Consumer Tissue, and price increases have also been implemented in other product categories the company said have been affected by higher costs. 

Essity entered into an agreement to acquire 44% of the Colombian hygiene company Productos Familia, which once closed will see it own at least 94% of the business. 

Essity also started the process to create the Consumer Tissue Private Label Europe division in the Consumer Tissue business area.