Sweden-based Essity exits Russian market

Sweden-based Essity began work in April 2022 to exit the Russian market and in 2022 an impairment was carried out of the company’s assets in Russia of approximately SEK 1.7 billon.

“Ever since the start of Russia’s war against Ukraine, we have been fully focused on exiting Russia. Today, we have completed the divestment of our business following a long and complex process,” said Magnus Groth, president and CEO of Essity.

In 2022, Essity’s net sales in Russia corresponded to about 2 per cent of its total consolidated net sales.

The buyer is the company New Technologies LLC, with the principal owner Igor Shilov. The earnings impact, including accumulated currency translation differences, amounts to approximately SEK -0.5 billion and will be reported as an item affecting comparability in the third quarter of 2023, the company said in a press release.