Essity: Interim Report Third Quarter 2021
STOCKHOLM, Oct. 22, 2021 /PRNewswire/ --
JANUARY 1 – SEPTEMBER 30, 2021
(compared with the corresponding period a year ago)
SUMMARY OF THIRD QUARTER OF 2021
Sales growth was strong in the third quarter and organic net sales rose 7.4% compared with the corresponding period a year ago, of which volume accounted for 4.2% and price/mix for 3.2%. Sales growth, including organic sales growth and acquisitions, amounted to 9.7%. Sales were positively impacted by more favorable market conditions and growing awareness of the importance of hygiene and health. Essity's organic net sales increased 1.9% compared with the third quarter of 2019. Personal Care and Professional Hygiene noted highly favorable organic sales growth during the third quarter of 2021 compared with the third quarter of 2020. Medical Solutions demonstrated strong growth and organic net sales rose 9.7%, with good growth in all product segments.
Organic net sales in mature markets increased 5.9%. In emerging markets, which accounted for 36% of net sales, organic net sales increased 10.2%.
During the quarter Essity has:
After the end of the quarter Essity has:
The Group's adjusted gross margin for the third quarter of 2021 decreased by 3.7 percentage points year on year to 28.7%. The gross margin was positively impacted by higher volumes, higher prices, an improved mix and cost savings. Higher raw material, energy and distribution costs reduced the margin by 6.7 percentage points. The Group's adjusted EBITA margin decreased 2.9 percentage points to 11.5%. Sales costs, excluding marketing costs, decreased in absolute terms and as a share of net sales. Investments in growth increased marketing costs in absolute terms but decreased as a share of net sales. Adjusted EBITA, excluding exchange rate effects, decreased 11%. The adjusted return on capital employed was 12.3%. Earnings per share increased 21% to SEK 3.90.
The Year-end Report for 2021 will be published on January 26, 2022. Essity's Annual Report for 2021 will be published during the week starting February 28, 2022. In 2022, interim reports will be published on April 28, July 21 and October 27.
CAPITAL MARKETS DAY 2021
Essity will arrange a capital markets day on November 3, 2021.
ANNUAL GENERAL MEETING
Essity's Annual General Meeting will be held in Stockholm on March 24, 2022.
INVITATION TO PRESENTATION OF THE THIRD-QUARTER REPORT FOR 2021
In conjunction with publication, a telephone and web presentation will be held where President and CEO Magnus Groth will present the report and answer questions.
Date: Friday, October 22, 2021
Time: 9:00 a.m. CET
Link to web presentation: https://essity.videosync.fi/2021-10-22-q3
To participate by telephone, call: +44 (0)207 192 80 00, +1 631 510 74 95 or +46 (0)8 506 921 80. Please call well in advance of the start of the presentation. Specify "Essity" or conference ID no. 9798955.
Stockholm, October 22, 2021
Essity Aktiebolag (publ)
President and CEO
For further information, please contact:
Fredrik Rystedt, CFO and Executive Vice President, +46 (0)8 788 51 31
Johan Karlsson, Vice President Investor Relations, Group Function Communications, +46 (0)8 788 51 30
Joséphine Edwall Björklund, Senior Vice President, Group Function Communications, +46 (0)8 788 52 34
Per Lorentz, Vice President Corporate Communications, Group Function Communications, +46 (0)8 788 52 51
This report has not been reviewed by the company's auditors.
This information is such information that Essity Aktiebolag (publ) is obligated to make public pursuant to the EU Market Abuse Regulation. This report has been prepared in both Swedish and English versions. In case of variations in the content between the two versions, the Swedish version shall govern. The information was submitted for publication, through the agency of the contact person set out below, at 7:00 a.m. CET on October 22, 2021.
Karl Stoltz, Media Relations Manager, +46 (0)8 788 51 55
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Company Codes: Bloomberg:ESSITYB@SS, ISIN:SE0009922164, RICS:ESSITYB.ST, Stockholm:ESSITYB
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