Toilet roll and hygiene products maker Essity says it has boosted profitability despite a dip in sales.
The Swedish-owned business which has sites across the North of England and Wales published third quarter results which show net sales fell 2.2% to SEK 36.27bn (£2.6bn) as profit for total operations grew to SEK 3.32bn (£242.7m). Meanwhile, Ebitda jumped 47% to SEK 5.1bn (£374m).
Essity employs more than 1,200 people across sites in Northumberland, Manchester and Hull, among others, and said all of its business areas had contributed to profitable growth with higher volumes, price discipline and higher sales prices helped the performance. Bosses said they had generated about SEK 1bn (£7.29m) savings through efficiency improvements.
CEO Magnus Groth said: “Growth was strong in health and medical, especially in Europe and Latin America. Our TENA Pants in Incontinence Products Health Care continued to drive both volume and higher margins and it is gratifying to see that the products are appreciated by both caregivers and patients. Growth was also particularly high in wound care products under our Leukoplast and Cutimed brands.
“We continued to gain market share in consumer goods, a result of our long-term work on innovation combined with investments in marketing. Growth was strong in Europe, but the development was also favourable in Latin America. In professional hygiene, growth was affected by restructuring, but underlying growth was strong, especially in the premium range.”
Lee Doherty, vice president of Consumer Goods UKI & MEA at the firm, said: “Essity is in better shape than ever. Globally we are seeing market share gains and higher volumes which are delivering profitable growth for the company. Pleasingly in Q3 2024 our 2050 net zero goals were validated by Science Based Targets initiative (SBTi) which demonstrates our commitment and action on sustainability.
“In the UK and ROI, we successfully delivered a significant all-company systems upgrade in Q3 2024 which further strengthens our ability to deliver a fast, reliable and efficient customer and supplier experience.”
Original artice – https://business-live.co.uk/all-about/yorkshire-humber
