#Sweden #Stockholm #Essity #TENA #Professional Hygiene

Essity's New Business Areas: A Strategic Restructuring

Effective January 1, 2026, Essity, a global leader in hygiene and health products, will implement a significant reorganization of its business operations. This strategic shift aims to enhance the company's growth rate and accelerate the achievement of key financial objectives. The new structure will consist of four main business areas: Health & Medical, Personal Care, Consumer Tissue, and Professional Hygiene.

Overview of the New Business Areas

Health & Medical

Essity’s Health & Medical division encompasses crucial categories such as Incontinence Products Health Care and Medical Solutions. This segment includes products renowned for their quality and effectiveness, like the TENA brand for incontinence products, as well as wound care, compression therapy, and orthopedic solutions available under trusted names like Leukoplast, Cutimed, JOBST, Actimove, and Delta-Cast. The goal of this division is to provide advanced medical solutions that cater both to individual needs and institutional clients.

Personal Care

Within the Personal Care sphere, Essity focuses on markets including Incontinence Products Retail, Feminine Care, and Baby Care. The range comprises popular items like TENA incontinence solutions, along with products from brands such as Libresse, Nosotras, Saba, and Knix, which offer everything from menstrual products to skin care items. Baby care under brands including Libero and Lotus enhances the company’s commitment to family and individual needs.

Consumer Tissue

The Consumer Tissue segment includes everyday products such as toilet paper, household towels, and facial tissues. This division markets products under well-known brands including Lotus, Tempo, Zewa, Cushelle, and Familia, with a focus on quality and accessibility for consumers. These essential household items reflect Essity's principle of improving the quality of life for people in their daily activities.

Professional Hygiene

Finally, the Professional Hygiene area provides comprehensive hygiene solutions tailored for businesses, including items like toilet paper, hand towels, and dispensers, all under the Tork brand. This division also incorporates digital solutions to facilitate service and maintenance, positioning Essity as a leader in workplace hygiene practices.

Financial Reporting Adjustments

Beginning with the interim report for the first quarter of 2026, Essity will adopt this new business structure for reporting purposes. The proforma financial results for 2023, 2024, and the first nine months of 2025 have been adjusted accordingly to reflect this change. This move positions Essity to not only comply with reporting standards but also to illustrate its financial health more accurately under the new operational framework.

The reported net sales from the previous year reflect strong performance across all newly defined areas, showcasing a dedicated effort by Essity to enhance revenue streams and market presence. For instance, the Health & Medical segment generated sales reaching approximately 20% from its cumulative operations.

Conclusion

This restructuring signifies more than just a change in operational categories; it marks a renewed commitment by Essity to deliver high-quality products that meet the evolving needs of consumers and healthcare providers. The company aims to leverage its well-established brands, such as TENA and Libresse, to solidify market leadership in these segments.

By implementing these changes, Essity is primed not just for improved financial performance but also to spearhead innovations that better serve customers worldwide.