# Essity A

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/essitya).

## Overview

Essity Aktiebolag is a global hygiene and health company headquartered in Sweden. It specializes in the production and distribution of personal care and tissue products. The company is committed to sustainability and innovation, focusing on reducing its environmental footprint and enhancing product offerings. Essity operates through several well-known brands including TENA, Tork, and Libero, catering to a diverse range of consumer needs across various markets.

## Products & services

• TENA incontinence products
• Tork hygiene solutions
• Libero baby care products
• JOBST compression hosiery
• Saba feminine care products
• Zewa toilet paper

- **Health & Medical** (20%) — Includes incontinence products and medical solutions
- **Consumer Goods** (54%) — Covers baby care, feminine care, and consumer tissue
- **Professional Hygiene** (26%) — Encompasses hygiene solutions for businesses

- TENA incontinence products
- Tork hygiene solutions
- Libero baby care products
- JOBST compression hosiery
- Saba feminine care products
- Zewa toilet paper

## Customers

Essity serves a wide range of customers, including individual consumers, healthcare institutions, and businesses. The company's products are designed to meet the needs of various demographics, from infants to the elderly, ensuring comfort and hygiene. Healthcare providers rely on Essity's medical solutions for patient care, while businesses utilize professional hygiene products to maintain cleanliness and safety. The company's commitment to innovation and sustainability attracts environmentally conscious consumers and organizations.

- **Healthcare Institutions** (primary) — Purchase medical and hygiene products for patient care
- **Businesses** (secondary) — Use professional hygiene solutions to maintain cleanliness
- **Individual Consumers** (primary) — Buy personal care products for daily hygiene needs

- Healthcare institutions use TENA products for patient care
- Businesses purchase Tork solutions for hygiene management
- Parents choose Libero products for baby care
- Consumers buy Saba products for feminine hygiene
- Elderly individuals use JOBST hosiery for compression therapy

## Geography

Essity operates globally, with a strong presence in Europe, North America, and Latin America. The company has manufacturing facilities in strategic locations to optimize distribution and reduce transportation costs. Europe remains a key market, although growth is also strong in Latin America. Essity's geographic diversification helps mitigate risks associated with regional economic fluctuations and regulatory changes.

- Strong presence in Europe, especially in the Nordic region
- Growing market share in Latin America
- Manufacturing facilities strategically located worldwide
- Operations in North America focus on premium product growth

## Strategy

Essity's strategic priorities include driving organic growth through innovation and cost efficiency. The company is focused on strengthening its market position by launching new products tailored to customer needs. Sustainability is a core component of Essity's strategy, with ambitious targets for reducing emissions and improving workplace safety. The company is also implementing organizational changes to enhance operational efficiency and profitability.

- **Innovation** (medium-term) — To drive organic growth and meet customer needs
- **Cost Efficiency** (short-term) — To improve profitability and margins
- **Sustainability** (long-term) — To reduce environmental impact and enhance brand reputation

- Focus on innovation to drive organic growth
- Implement cost-saving measures to improve margins
- Launch market-tailored products to meet customer needs
- Commit to sustainability with science-based targets

## Risks

Essity faces several risks, including fluctuations in raw material prices and currency exchange rates, which can impact profitability. The company also contends with regulatory changes in different markets that may affect operations. Sustainability-related risks, such as meeting emissions targets, are significant given Essity's commitment to environmental goals. Additionally, competitive pressures in the hygiene and health sectors require continuous innovation and adaptation.

- **Raw Material Price Fluctuations** [high] — Affects cost of goods sold and profitability
- **Currency Exchange Rate Volatility** [medium] — Impacts financial results and earnings
- **Regulatory Changes** [medium] — Can affect operations and compliance costs

- Fluctuations in raw material prices affecting cost of goods sold
- Currency exchange rate volatility impacting financial results
- Regulatory changes in key markets affecting operations
- Sustainability targets posing operational challenges
- Competitive pressures requiring continuous innovation

## Accounting

Essity's financial statements are influenced by several critical accounting matters, including revenue recognition and the impact of currency exchange rates. The company applies IAS 34 for interim reporting and has adopted recent amendments to IAS 21. Revenue recognition timing and methods are crucial for understanding quarterly fluctuations, especially given the seasonality in consumer demand. Currency translation effects also play a significant role in reported earnings, requiring careful analysis by investors.

- **Revenue Recognition Timing** — high
- **Currency Translation Effects** — medium

- Revenue recognition timing affects quarterly results
- Currency translation impacts reported earnings
- Adoption of IAS 21 amendments for exchange rate effects
- Seasonality influences revenue and cost fluctuations

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*Last updated: 2026-08-11T04:04:52.467989+00:00*