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Essity Reports Lower Sales

Net sales decline 11.4% in second quarter

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By: Tara Olivo

Associate Editor at Nonwovens Industry, Rodman Media

In the second quarter of 2020, Essity’s net sales declined 11.4% compared with the corresponding period a year ago to SEK 28.4 billion ($3.08 billion). Organic net sales, which exclude exchange rate effects, acquisitions and divestments, declined 9.3%, of which volume accounted for -9.8% and price/mix for 0.5%. Sales were negatively affected by the COVID-19 pandemic and related lockdowns as well as inventory adjustments following the stockpiling that took place among consumers and distributors in March 2020. Organic net sales declined 14.7% in mature markets and increased 0.6% in emerging markets. Emerging markets accounted for 39% of net sales. Exchange rate effects reduced net sales by 2%. Acquisitions increased net sales by 0.1% and is largely attributable to the acquisition of ABIGO Medical AB. Divestment of a partly owned company in Turkey reduced net sales by 0.2%.

In the Personal Care segment, second quarter 2020 net sales declined 12.4% to SEK 10,651m ($1.2 billion). Organic net sales declined 9.4%, of which volume accounted for -10.2% and price/mix for 0.8%. Organic net sales in mature markets declined 12.2%. In emerging markets, which accounted for 37% of net sales, organic net sales declined 4.1%. Exchange rate effects reduced net sales by 2.9%. Divestments reduced net sales by 0.4%. Acquisitions increased net sales by 0.3%.

Sales were negatively affected by the COVID-19 pandemic and related lockdowns as well as inventory adjustments following the stockpiling that took place among consumers in March 2020. For Incontinence Products, organic net sales declined 3.2%. The decline was related to Western Europe and Latin America. In Medical Solutions, organic net sales decreased 25.6%. The decline is related to Western Europe, North America and emerging markets. For Baby Care, organic net sales declined 15.9%, related to Western Europe and emerging markets. For Feminine Care, organic net sales declined 0.2%, primarily related to Western Europe. Net sales increased in emerging markets. 

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