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Essity to review ownership of Vinda & Consumer Tissue Europe

28 Apr '23

2 min read

Pic: Essity

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Sweden-based hygiene and health company Essity has announced that it will begin a strategic review of its ownership of Asian hygiene firm Vinda International Holdings Ltd and the Consumer Tissue Private Label Europe business.
The aim is to reduce Consumer Tissue's share of the company's total sales, although no decisions have been made yet.

Essity, a Sweden-based hygiene and health company, has announced that it will begin a strategic review of its ownership of the Asian hygiene firm Vinda International Holdings Ltd (Vinda) and the Consumer Tissue Private Label Europe business with the aim of reducing the latter's share of the company's total sales. Essity continuously evaluates its product portfolios to achieve long-term value creation, and this strategic review aims to explore different options that may result in divestments, although no such decisions have been taken yet.

In 2022, Essity's net sales were approximately Swedish Krona (SEK) 156 billion, with Vinda accounting for about 16 per cent and the Consumer Tissue Private Label Europe business accounting for about 6 per cent. Vinda and the Consumer Tissue Private Label Europe business made up about 34 per cent of the consumer goods’ net sales in 2022 and about 45 per cent of the consumer tissue category’s net sales, Essity said in a press release.

Essity holds a 51.59 per cent ownership in Vinda, which is listed on the Hong Kong Stock Exchange and had a market capitalisation of approximately Hong Kong Dollar (HKD) 26 billion (approximately SEK 34 billion) on April 25, 2023. Vinda's net sales in 2022 amounted to approximately SEK 25.1 billion, with 83 per cent related to tissue and 17 per cent to personal care.

The Consumer Tissue Private Label Europe business had net sales of approximately SEK 9.8 billion in 2022 and encompasses seven production facilities in Belgium, France, Germany and Italy with around 1,900 employees. Other operations in Consumer Tissue are a prioritised business focusing on innovation, brands, and sustainability.

Fibre2Fashion News Desk (DP)