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

Essity's Capital Markets Day: A Vision for Profitable Growth and Innovation

On December 3, 2024, Essity hosted its much-anticipated Capital Markets Day at their production facility in Valls, Spain. This event was not just a routine corporate gathering; it served as a platform for Essity to unveil its ambitious strategies aimed at accelerating profitable growth in their hygiene product lines.

Overview of the Event

The day followed a meticulously planned agenda that emphasized the company's commitment to meeting the financial targets announced earlier in the year. Attendees were invited to explore an integrated production facility, gaining firsthand insights into the cutting-edge technologies and processes that drive Essity's operations. Magnus Groth, President and CEO of Essity, opened the session by articulating the company's elevated ambitions. He stated, "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."

Financial Targets

A critical portion of the presentation was dedicated to discussing the financial targets that Essity aims to achieve in the coming years. Noteworthy goals include:

• - Annual organic sales growth of more than 3%, with targeted segments such as Health Medical (>4%), Consumer Goods (>3%), and Professional Hygiene (>2%).
• - A projected savings of SEK 0.5 to 1 billion in cost of goods sold (COGS) annually, underscoring Essity’s focus on operational efficiency.

Insightful Presentations and Tours

The event featured presentations from key executives, including the Chief Strategy Officer Sahil Tesfu and Chief Financial Officer Fredrik Rystedt. Their discussions centered on the overarching strategy to drive margin expansion within a global supply chain framework. Attendees were treated to a guided tour of the production facility, where they witnessed innovations in real-time, showcasing the dedication of Essity to both quality and environmental sustainability.

In addition, a dedicated segment was held on health and medical products, highlighting Essity's commitment to scaling these operations through innovative practices. Ulrika Kolsrud, President of Health Medical, and her team shared insights into how the company plans to enhance its offerings in this vital sector.

Innovations Driving Growth

One of the most engaging parts of the day was the demonstration of various innovations within Essity’s product categories. The Global Planning and Logistics Hub was showcased as a cornerstone for achieving efficient and sustainable growth. The event concluded with a lunch that featured additional demonstrations, offering attendees a chance to network while experiencing the latest developments.

Strategic Focus on Consumer Goods and Professional Hygiene

Further discussions delved into the Consumer Goods sector, where executives outlined strategies aimed at accelerating high-margin categories. Likewise, the Professional Hygiene segment unveiled plans to bolster global leadership within this essential market. Notably, Pablo Fuentes, President of Professional Hygiene, emphasized the importance of expanding their reach and influence in this competitive landscape.

Conclusion

Essity’s Capital Markets Day was not only a testament to the company's ambitious growth strategy but also highlighted the innovative spirit that drives their operations. The insights shared during the event solidified Essity's commitment to becoming a global leader in hygiene and health, as they continue to evolve and drive profitability in an ever-changing market landscape. While the event was not livestreamed, recorded materials will soon be available on Essity's website, ensuring that even those unable to attend can stay informed about the company’s future direction.

This dynamic focus on growth and innovation showcases Essity's dedication to not just meet but exceed the expectations of stakeholders and consumers alike. With a clear roadmap laid out, the anticipation for what lies ahead for Essity is palpable in the market as they continue to pursue their vision for success.