Essity Begins Strategic Evaluation of the Consumer Tissue Business Area
Essity, the prominent hygiene and health company, has embarked on a comprehensive strategic review of its Consumer Tissue business area, which encompasses a wide range of household paper products. This initiative is aimed at exploring various potential strategies to bolster the business’s long-term value and ensure that the best possibilities for its future evolution are fully considered.
The decision to undertake this review comes from Essity’s ongoing commitment to meticulously examining its product portfolio with the aim of maximizing value creation across all segments. As stated by Ulrika Kolsrud, the President and CEO of Essity, this strategic assessment will analyze different ownership options for the Consumer Tissue sector, potentially leading to significant changes such as a separation from the rest of the company, although no definitive decisions have yet been made.
In the financial year of 2025, Essity’s Consumer Tissue segment recorded impressive figures, generating net sales of SEK 43,537 million, which accounted for 31% of the company’s overall net sales. The EBITA, excluding integration and acquisition costs, stood at SEK 5,187 million, showcasing a robust EBITA margin of 11.9%, while the return on capital employed (ROCE) for this segment was calculated at 14.7%. These statistics underline the substantial market presence Essity holds, particularly in Europe, where it is the leading supplier of tissue products, and its notable second position within the Latin American market.
The Consumer Tissue product range includes essential items such as toilet paper, household towels, facial tissues, moist wipes, and paper napkins, all marketed under well-known brands like Lotus, Tempo, Zewa, Cushelle, Plenty, Regio, and Familia. Furthermore, Essity also manufactures tissue products for retailer brands and private label companies, adding to its extensive portfolio. The Consumer Tissue division employs approximately 13,000 individuals and operates 29 production facilities across various regions.
As part of its strategic commitments, Essity will be hosting a Capital Markets Day on May 7, 2026. This event will offer insights into the company’s strategic direction and the progress made in its various operations, including the Consumer Tissue segment. The live-streamed event will allow stakeholders to engage with management and pose questions regarding the ongoing review and future plans.
The move to rigorously assess the Consumer Tissue business area signifies Essity's proactive approach to corporate management, adhering to the EU Market Abuse Regulation that necessitates the public disclosure of such strategic undertakings. This review not only emphasizes the company's adaptability in a competitive market but also underlines its vision for sustainable growth in a rapidly evolving industry. As market dynamics change, the steps Essity takes now may well determine the trajectory of its Consumer Tissue segment for years to come.
The decision to undertake this review comes from Essity’s ongoing commitment to meticulously examining its product portfolio with the aim of maximizing value creation across all segments. As stated by Ulrika Kolsrud, the President and CEO of Essity, this strategic assessment will analyze different ownership options for the Consumer Tissue sector, potentially leading to significant changes such as a separation from the rest of the company, although no definitive decisions have yet been made.
In the financial year of 2025, Essity’s Consumer Tissue segment recorded impressive figures, generating net sales of SEK 43,537 million, which accounted for 31% of the company’s overall net sales. The EBITA, excluding integration and acquisition costs, stood at SEK 5,187 million, showcasing a robust EBITA margin of 11.9%, while the return on capital employed (ROCE) for this segment was calculated at 14.7%. These statistics underline the substantial market presence Essity holds, particularly in Europe, where it is the leading supplier of tissue products, and its notable second position within the Latin American market.
The Consumer Tissue product range includes essential items such as toilet paper, household towels, facial tissues, moist wipes, and paper napkins, all marketed under well-known brands like Lotus, Tempo, Zewa, Cushelle, Plenty, Regio, and Familia. Furthermore, Essity also manufactures tissue products for retailer brands and private label companies, adding to its extensive portfolio. The Consumer Tissue division employs approximately 13,000 individuals and operates 29 production facilities across various regions.
As part of its strategic commitments, Essity will be hosting a Capital Markets Day on May 7, 2026. This event will offer insights into the company’s strategic direction and the progress made in its various operations, including the Consumer Tissue segment. The live-streamed event will allow stakeholders to engage with management and pose questions regarding the ongoing review and future plans.
The move to rigorously assess the Consumer Tissue business area signifies Essity's proactive approach to corporate management, adhering to the EU Market Abuse Regulation that necessitates the public disclosure of such strategic undertakings. This review not only emphasizes the company's adaptability in a competitive market but also underlines its vision for sustainable growth in a rapidly evolving industry. As market dynamics change, the steps Essity takes now may well determine the trajectory of its Consumer Tissue segment for years to come.
Topics Consumer Products & Retail）
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