Essity has announced its President and Chief Executive Magnus Groth will leave the company in 2025, as it reports its “highest level ever” profits in its FY 2024.
After 14 years with the company and almost ten years as president and Chief Executive, the company said Groth has decided to step down from the role.
A recruitment process for a successor has been initiated.
Jan Gurander, Chairman of the Board, said: “As President and Chief Executive of first SCA and then Essity, Magnus has successfully listed and led Essity on a significant journey of change over the past 10 years to increase profitability, growth and innovation.
“Through his leadership and commitment, Magnus has played an important role in creating the platform that Essity has for continued global profitable expansion.”
Groth said: “After 14 years with the company and ten years as CEO, I consider this a suitable time to embark on a new chapter for me and for Essity.
“Essity is today a world-leading hygiene and health company with strong brands and market positions, great employees and recognised sustainability work, reflected in profitable growth.”
Groth has a notice period of one year and will continue as President and Chief Executive of Essity until a successor is appointed.
Q4 and full-year 2024 results: strong growth in fourth quarter
In the fourth quarter of 2024, Essity has reported a net sales growth of 3.2% to SEK37,805m, while EBITA decreased 1% to SEK4,585m.
Profit (EBITA excl. IAC) for the quarter was higher than in the year-earlier period and amounted to SEK2,893m, due to higher volumes and sales prices, and a favourable product mix.
For the full-year 2024, net sales decreased 1.1% to SEK145,546m, while EBITA increased 17% to SEK19,475m (16,607).
Profit for the year, total operations, amounted to SEK21,048m.
Groth said: “Essity is in better shape than ever and our focus on accelerated profitable growth is yielding results.
“For full-year 2024, profit reached its highest level ever at SEK 20.3bn, corresponding to a margin of 14%.
He added that sales increased in all of Essity’s business areas in the fourth quarter, despite continued global economic challenges.
“People are prioritising hygiene and health and choosing the product offerings that can best improve their everyday lives, making relevant innovation crucial,” he said.
“The latest major innovation is Tork Optiserve Coreless, a new toilet paper system that complements our big seller Tork PeakServe in Professional Hygiene.”
During the year Essity also divested Vinda and prioritised growth in categories that “yield a high return”.
“Our continuous efforts to improve efficiency have resulted in cost savings of SEK1.5bn.
