#Spain #Essity #Hygiene Products #Valls #Capital Markets Day

Essity's Capital Markets Day: Accelerating Growth

On December 3, 2024, Essity held its Capital Markets Day at its cutting-edge hygiene products production facility located in Valls, Spain. The event focused on the company's ambitious roadmap for accelerating profitable growth while detailing the financial targets set in mid-2024. Magnus Groth, President and CEO of Essity, highlighted advancements in strategy that will ensure the company remains a global leader in hygiene and health sectors.

Groth emphasized, "We have raised our ambition with the new targets presented earlier this year. Today, we will outline how we will accelerate profitable growth and continue to evolve towards our vision to be the undisputed global leader in hygiene and health." This statement clearly reflects Essity's commitment to not only meet but exceed market expectations while solidifying its reputation.

Financial Targets and Innovations

The company's new targets include an annual organic sales growth of over 3% and a significant EBITA margin goal exceeding 15%. Particularly notable is the focus on three main segments:

• - Health & Medical: Projected annual growth of over 4%.
• - Consumer Goods: Targeting over 3% growth.
• - Professional Hygiene: Aiming for more than 2% annual growth.

Additionally, Essity expects to achieve a significant reduction in cost of goods sold, estimating annual savings between SEK 0.5 billion to 1 billion, enhancing their overall competitiveness in the industry.

During the event, attendees were guided through the Valls production facility, where they witnessed firsthand the innovative processes that support Essity's robust supply chain. The tour also included demonstrations of the latest product innovations across various categories, showcasing the company’s dedication to sustainability and efficiency.

Engaging with Stakeholders

The day's agenda featured several key presentations from Essity's leadership team. Highlights included discussions on:

• - Global Supply Chain: Strategies for driving margin expansion, presented by Donato Giorgio, President of Global Supply Chain.
• - Health & Medical Division: Expansion efforts led by Ulrika Kolsrud, emphasizing the importance of scaling these crucial operations.
• - Consumer Goods: Insights on accelerating high-margin categories presented by Volker Zöller.
• - Professional Hygiene: Focus on maintaining global leadership by Pablo Fuentes.

The day culminated in a networking lunch where more product innovations were showcased, allowing for productive discussions among industry professionals and Essity representatives.

Future Directions

Essity's Capital Markets Day served as a pivotal point for the company, reaffirming its commitment to innovation, sustainability, and growth in the hygiene and health sectors. Although the event was not live-streamed, detailed presentations and recordings will be uploaded to Essity's website, ensuring that interested parties can access this vital information post-event.

In conclusion, Essity is poised to continue its trajectory of growth and leadership in the market, driven by clear strategies and the unwavering commitment of its dedicated workforce. The vibrant discussions and innovative showcases at the Capital Markets Day are clear indicators of a forward-thinking company determined to succeed in an increasingly competitive landscape.