Essity Launches Comprehensive Evaluation of Its Consumer Tissue Division for Future Growth Strategy

Essity's Strategic Review of Consumer Tissue Business

In a pivotal move to bolster its long-term value creation, Essity, a leading global hygiene and health company, has announced the initiation of a strategic review of its Consumer Tissue segment. This decision, made by Essity's Board of Directors, aims to explore various strategic alternatives to optimize the operations within this business area and maximize overall value creation.

The Consumer Tissue division, which encompasses well-known consumer goods such as toilet paper, household towels, handkerchiefs, and tissue products, plays a significant role in Essity's portfolio. In 2025 alone, this business area reported net sales of SEK 43,537 million, accounting for approximately 31% of the Group's total sales. With a robust EBITA of SEK 5,187 million and an EBITA margin of 11.9%, Essity's Consumer Tissue business is not only crucial to the company’s financial health but also a leader in multiple markets, particularly in Europe and Latin America.

Ulrika Kolsrud, President and CEO of Essity, stated, "Our Consumer Tissue business has a strong offering under its own brands, retailer brands, and private labels. This strategic review will consider different ownership options for the Consumer Tissue sector as part of our commitment to refining Essity’s product portfolio. Our goal is to ensure that this division reaches its highest potential in terms of growth and value generation."

The strategic review is set to investigate various avenues, including the potential separation of the Consumer Tissue operations, although no final decisions have yet been made. As part of this evaluation, Essity is also analyzing the efficiency of its supply chain which plays an integral role in its market position and operational success.

As a result of this ongoing review, stakeholders can expect a thorough analysis that aligns with Essity’s goals for enhancing operational efficiency and market performance. With approximately 13,000 employees and 29 production facilities, the Consumer Tissue segment is a substantial part of Essity's global operations, underpinned by its leading brand portfolio that includes names like Lotus, Tempo, and Zewa.

In addition to these developments, Essity will be holding its Capital Markets Day tomorrow, May 7, 2026, at 9 AM CET. The event, aimed at discussing the company’s strategic direction and financial performance, will be live-streamed, providing an opportunity for investors and analysts to engage with the firm directly.

This strategic review underscores Essity's commitment to refining its business operations and ensuring that each of its divisions operates at peak effectiveness. The outcome of this strategic evaluation may lead to transformative changes within Essity, all geared toward sustainably enhancing its value in the competitive hygiene and health marketplace.

As the industry evolves and consumer needs shift, Essity’s proactive approach positions the company to respond adeptly to market demands. The decisions made in the coming months as a result of this review could reshape Essity’s future trajectory and reinforce its reputation as a leader in the consumer hygiene sector.