Essity: Key highlights from CEO Fireside Chat

研报英文原文证据摘录

Essity: Key highlights from CEO Fireside Chat

ity in recent years, portfolio change and CT strategic

review, and LT growth drivers. However, it may not reassure on near-term cost

risks (see our Q226 preview) nor value creation uncertainty on potential CT

outcomes.

• Key takeaways: 1 - Organic growth of +3% underpinned by both market

and share gains. Mid-term top-line growth targets are underpinned by an

assumption of an underlying market growth of 2-3% and share gains. Mix

should be skewed towards Emerging Markets (+4-5% versus Developed closer

to +1-2%). Long-term structural tailwinds underpinning the targets remain in

place, including an ageing population, hygiene awareness, and chronic

conditions. 2 - Consumer Tissue strategic review. The CEO noted that the

strategic review of CT is consistent with the strategy to prioritize higher value-

add segments and that the asset has higher capital intensity and less to at play

to Essity’s strengths: innovation, and brand-building. The business has limited

synergies with the rest of the group, mainly front-end commercial as well as

some production overlap with Professional, but more limited in purchasing. 3-

M&A opportunities. M&A was also a focus for the call, with the company

noting that it is a priority irrespective of the CT strategic review outcome. Areas

the company wants to prioritise include continence care, feminine hygiene,

wound care and strategic segments of professional. 4 - Core growth engine of

Personal Care with clear levers to improve performance through category

expansion and share gains. Personal Care’s growth acceleration should come

through three key drivers. Firstly, penetration of niches that remain

underpenetrated, namely TENA Men. Secondly, the opportunity in leakproof