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Beverage, milkshake and ice cream cups will be re-used to make professional hygiene paper under Essity’s leading Tork brand.

Hygiene and health company Essity and McDonald’s are writing circular history with a recycling project that turns used paper cups into a new resource. Starting in 2020, the project consisting of a team from Essity, logistics partner HAVI, and McDonald’s Deutschland LLC, has piloted different opportunities to give paper cup waste a new life.

The pilot showed that Essity can successfully use the paper cups, after they have been shredded, as material for some of their mills and turn them into Tork branded toilet paper.

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“It’s exciting to work with our customers on sustainability projects like this. Combining our recycling technology and knowledge of circular services with McDonald’s Deutschland LLC sustainability ambitions is enabling a future business model that helps to close the loop” says Don Lewis, President Essity Professional Hygiene.

All collected paper cup waste from McDonald’s sites in Germany will be recycled, reducing waste by estimated 1,200 tons per year. This agreement is a win for both companies as it helps to cut the waste and carbon footprint for McDonald’s Deutschland LLC while Essity is able to fulfill its own circular ambitions.

The solution is an extension of the Tork PaperCircle® recycling service, which is Essity’s award winning circular service for recycling used paper towels into toilet paper. 

Essity is a leading global hygiene and health company. We are dedicated to improving well-being through our products and services. Sales are conducted in approximately 150 countries under the leading global brands TENA and Tork, and other strong brands, such as JOBST, Leukoplast, Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa. Essity has about 46,000 employees. Net sales in 2020 amounted to approximately SEK 122bn (EUR 11.6bn). The company’s headquarters is located in Stockholm, Sweden, and Essity is listed on Nasdaq Stockholm. Essity breaks barriers to well-being and contributes to a healthy, sustainable and circular society. More information at www.essity.com.

Published in European News
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Essity is investing in enhanced efficiency in the company´s site in Kawerau, New Zealand, including the world’s first tissue machine running a fully geothermal steam drying process. Together with a reduction in pulp consumption, reduced waste and elimination of the burning of natural gas on the machine, the improvements will contribute to a reduction of carbon emissions by 23 percent from the Kawerau site.

“We´re setting new industry standards when it comes to sustainable tissue production. Investing in the world’s first tissue machine running a fully geothermal steam process is groundbreaking. By reducing our carbon emissions, we can offer our customers and consumers more climate friendly products”, says Magnus Groth, President and CEO, Essity.

The Kawerau site has served New Zealand’s businesses through its TORK products and New Zealand households with well-known brands such as Purex, Sorbent and Handee for over 65 years. Essity has 326 employees in New Zealand, including over 200 in Kawerau.  

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Essity is proud to lead the industry for environmental and social sustainability performance across its operations in Australasia. Improvements include sustainable packaging supporting the Australian National Packaging Targets, certified sustainable fiber sources, ethical supply chains, and reducing manufacturing waste and water use.

The investment of approximately AUD 15m (approximately SEK 95m) is partly funded through the Government Investment in Decarbonizing Industry (GIDI) Fund, administered by EECA (Energy Efficiency and Conservation Authority) in New Zealand.

The production of tissue from geothermal steam is part of Essity’s work to use less energy and achieve net zero emissions by 2050.

Essity is a leading global hygiene and health company. We are dedicated to improving well-being through our products and services. Sales are conducted in approximately 150 countries under the leading global brands TENA and Tork, and other strong brands, such as JOBST, Leukoplast, Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa. Essity has about 46,000 employees. Net sales in 2020 amounted to approximately SEK 122bn (EUR 11.6bn). The company’s headquarters is located in Stockholm, Sweden, and Essity is listed on Nasdaq Stockholm. Essity breaks barriers to well-being and contributes to a healthy, sustainable and circular society. More information at www.essity.com.

Published in Oceania News
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Hygiene and health company Essity is today presenting a breakthrough in sustainable tissue production and is beginning production based on pulp from wheat straw. The plant in Mannheim, Germany, is the first of its kind in Europe, and the first on a large-scale tissue production in the world.

This new type of tissue paper is as soft, bright, and strong as traditional tissue paper. Essity is the first company in the tissue industry to use these agricultural leftovers at industrial scale. About half of all straw worldwide remains unused. The straw used in this production is sourced in the region and is processed by Essity. With straw instead of wood-based virgin or recovered fibers as raw material, the process also requires less water and energy.

“This type of innovation is the way forward to increase circularity and reduce our climate footprint. Using straw as a new raw material in pulp makes us less dependent on wood fiber and recycling fiber and is more resource and cost efficient, while our consumers can make more environmentally friendly choices,” says Magnus Groth, President and CEO of Essity.

Essity has an exclusive licensing agreement for the technology, where the straw-based pulp will maintain the same quality as conventional wood-based pulp at a competitive cost. The straw pulp will initially be used in tissue products for the German consumer retail market under Essity’s market-leading brand for household towels and toilet paper, Zewa. The products will contain about 30% straw-based pulp.

Essity loading wheat strawEssity loading wheat straw

The Mannheim plant is Essity’s largest tissue plant in Europe with an annual production capacity of 283,000 tons of tissue. Annually, the company will regionally source 70,000 tons of straw that will become about 35,000 tons of pulp.

The production of paper from straw pulp is part of Essity’s work to increase circularity and achieve net zero emissions by 2050.

Essity will talk more about this breakthrough in tissue production at the company´s digital Capital Markets Day, held on November 3rd.

Essity is a leading global hygiene and health company. We are dedicated to improving well-being through our products and services. Sales are conducted in approximately 150 countries under the leading global brands TENA and Tork, and other strong brands, such as JOBST, Leukoplast, Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa. Essity has about 46,000 employees. Net sales in 2020 amounted to approximately SEK 122bn (EUR 11.6bn). The company’s headquarters is located in Stockholm, Sweden, and Essity is listed on Nasdaq Stockholm. Essity breaks barriers to well-being and contributes to a healthy, sustainable and circular society. More information at www.essity.com.

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Global hygiene and health company Essity invests approximately EUR 11m (approximately SEK 110m) in its Hondouville mill in France, allowing to extract 98% of paper fibers contained in food and beverage cartons.

Since 2008, Essity’s Hondouville mill has been the leading recycler in France of food and beverage cartons, currently recycling more than 63% of all cartons that are sorted, collected, and recycled in the country*. This new investment will allow Essity to increase the recycling capacity of cartons to 24,000 tons a year. The fibers from these cartons are used in the fiber mix to manufacture Tork branded products within Professional Hygiene.

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“This investment improves our contribution to a circular society with cost-effective and sustainable production. We also take important steps towards reaching Essity’s goal that all production waste will be subject to material or energy recovery by 2030”, says Magnus Groth, President and CEO at Essity.

The improved recycling system will be operational during the first half of 2022.     

  • Source: CITEO and Alliance Carton Nature

Essity is a leading global hygiene and health company. We are dedicated to improving well-being through our products and services. Sales are conducted in approximately 150 countries under the leading global brands TENA and Tork, and other strong brands, such as JOBST, Leukoplast, Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa. Essity has about 46,000 employees. Net sales in 2020 amounted to approximately SEK 122bn (EUR 11.6bn). The company’s headquarters is located in Stockholm, Sweden, and Essity is listed on Nasdaq Stockholm. Essity breaks barriers to well-being and contributes to a healthy, sustainable and circular society. More information at www.essity.com

Published in European News
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Thursday, 23 April 2020 20:47

Essity interim Report First Quarter 2020

The Group’s net sales increased 10.0% in the first quarter of 2020 compared with the corresponding period a year ago. Organic net sales increased 7.8%, of which volume accounted for 5.9% and price/mix for 1.9%. In mature markets, organic net sales increased 10.2%. In emerging markets, which accounted for 35% of net sales, organic net sales increased 4.0%.

  • Net sales increased 10.0% to SEK 33,712m (30,656)
  • Organic net sales increased 7.8%
  • The COVID-19 pandemic resulted in a sharp increase in sales and earnings in March 2020 as a result of stockpiling among consumers and distributors
  • In emerging markets, which accounted for 35% of net sales, organic net sales increased 4.0%
  • Operating profit before amortization of acquisition-related intangible assets (EBITA) increased 77% to SEK 5,316m (3,002)
  • Adjusted EBITA increased 67% to SEK 5,333m (3,190)
  • Adjusted EBITA margin increased 5.4 percentage points to 15.8% (10.4)
  • Profit for the period increased 87% to SEK 3,610m (1,929)
  • Earnings per share increased 85% to SEK 4.61 (2.49)
  • Adjusted earnings per share increased 69% to SEK 4.83 (2.86)
  • Cash flow from current operations increased 25% to SEK 3,044m (2,434)

2020 04 23 204445The COVID-19 pandemic resulted in a sharp increase in sales in many markets for Consumer Tissue, Incontinence Products, Baby Care, Feminine Care and Professional Hygiene as a result of stockpiling among consumers and distributors. In March 2020, organic net sales for the Group increased 19.7% compared with March 2019. Organic net sales for Personal Care rose by 17.0%, for Consumer Tissue by 19.5% and for Professional Hygiene by 24.5%. Sales in future quarters will be adversely impacted by the stockpiling seen in March and sales in Professional Hygiene will also be negatively impacted by reduced travel, fewer restaurant visits and more people working from home. In the long-term, the COVID-19 pandemic may lead to increased demand for hygiene and health products due to, for example, a greater focus on hand hygiene.

During the COVID-19 pandemic, Essity has three main priorities: care for our employees, continuing to operate a successful business and contributing to society. To maintain a safe work environment for our employees, satisfy increased demand and safeguard production and logistics, we have carried out measures in all parts of the business, including new ways of working for our employees, production adaptations and securing transportation. We have increased our presence and activity in digital sales channels. We contribute to society by delivering our leading hygiene and health solutions. In Sweden, the US and Mexico, we are investing in the production of surgical masks and face masks for the healthcare sector and our employees. We support the WHO COVID-19 Solidarity Response Fund and several local initiatives.

The Group’s adjusted gross margin for the first quarter of 2020 increased 5.6 percentage points to 32.8% compared with the corresponding period in the preceding year. The gross margin was positively impacted by higher volumes, a better mix and costs savings. Continuous cost savings amounted to SEK 260m. Lower raw materials and energy costs increased the gross margin by 4.7 percentage points. Lower raw material costs were primarily the result of lower pulp prices. Our production facilities outside of China did not experience any major production disruptions due to the COVID-19 pandemic, although distribution costs have increased. Lower prices, mainly related to Consumer Tissue in Europe and Asia, had a negative impact on the gross margin. The Group’s adjusted EBITA margin rose 5.4 percentage points to 15.8%. Investments in growth increased sales and marketing costs, also as a share of net sales. Adjusted EBITA for the first quarter of 2020 increased 67% compared with the same period in the preceding year. Adjusted return on capital employed rose 7.1 percentage points to 18.4 percent. Operating cash flow increased 108%. Earnings per share increased 85% to SEK 4.61.

Essity has a robust financial position and a solid funding situation. At March 31, 2020, net debt in relation to adjusted EBITDA was 2.09. The rapid spread of COVID-19 pandemic and related countermeasures mean the level of uncertainty in future forecasts is much greater than normal. At the Annual General Meeting, it was decided not to pay a dividend for 2019. The Board of Directors has announced that it intends to revisit the issue concerning a dividend later in the year when a better overview can be gained of the effects of the ongoing COVID-19 pandemic.

FUTURE REPORTS
In 2020, interim reports will be published on July 17 and October 22.

Published in Financial News
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Wednesday, 28 February 2018 10:08

Essity restructures in Chile

Essity is restructuring its production facility in Santiago, Chile, to further improve quality and cost for the Consumer Tissue and Professional Hygiene businesses in the country. These measures are aligned with the company’s strategy to optimize the production footprint to increase cost and capital efficiency and further increase value creation in the Consumer Tissue and Professional Hygiene business areas.

2018 02 28 100908The restructuring measures include the closure of one tissue machine and two converting lines.

The restructuring costs amount to approximately SEK 140m, and will be recognized as an item affecting comparability in the first quarter of 2018. Approximately SEK 30m of these costs are expected to impact cash flow.

For additional information, please contact:   

Henrik Sjöström, Media Relations Manager, +46 8 788 51 36, This email address is being protected from spambots. You need JavaScript enabled to view it.  

Johan Karlsson, Vice President Investor Relations, +46 8 788 51 30, This email address is being protected from spambots. You need JavaScript enabled to view it.

Essity is a leading global hygiene and health company dedicated to improving well-being through our products and solutions, essentials for everyday life. The name Essity stems from the words essentials and necessities. Our sustainable business model creates value for people and nature. Sales are conducted in approximately 150 countries under the leading global brands TENA and Tork, and other strong brands, such as Jobst, Leukoplast, Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa. Essity has about 48,000 employees and net sales in 2017 amounted to approximately SEK 109bn (EUR 11.3bn). The headquarters is located in Stockholm, Sweden, and the company is listed on Nasdaq Stockholm. More information at www.essity.com

Published in South American News
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