STOCKHOLM, Jan. 27, 2021 /PRNewswire/ --
JANUARY 1 - DECEMBER 31,
2020
(compared with the corresponding period a year ago)
- Highest adjusted EBITA and highest adjusted EBITA margin
ever
- Target raised for adjusted return on capital employed to above
17% by 2025
- Net sales declined 5.6% to SEK
121,752m (128,975)
- Organic net sales declined 1.9%
- Sales were negatively impacted by the COVID-19 pandemic and
related lockdowns
- In emerging markets, which accounted for 37% of net sales,
organic net sales increased 2.6%
- Operating profit before amortization of acquisition-related
intangible assets (EBITA) increased 16% to SEK 17,567m (15,127)
- Adjusted EBITA increased 11% to SEK
17,626m (15,840)
- Adjusted EBITA margin increased 2.2 percentage points to 14.5%
(12.3)
- Adjusted return on capital employed increased 1.9 percentage
points to 15.7% (13.8)
- Profit for the period increased 15% to SEK 11,747m (10,212)
- Earnings per share increased 11% to SEK
14.56 (13.12)
- Adjusted earnings per share increased 5% to SEK 15.45 (14.69)
- Cash flow from current operations decreased 15% to SEK 11,175m (13,208)
- At an Extraordinary General Meeting on October 28, 2020, Essity resolved to pay a
dividend of SEK 6.25 per share
- The Board of Directors proposes an increase in the dividend of
8% to SEK 6.75 (6.25*) per share
SUMMARY OF FULL-YEAR AND FOURTH QUARTER 2020
The COVID-19 pandemic has had a major impact on people and the
global economy. Vaccinations have started and market conditions are
gradually improving. Increased awareness of hygiene and health is
positive for Essity. The COVID-19 pandemic and related lockdowns
and restrictions had a negative effect on Essity's sales which
mainly impacted Professional Hygiene and Medical Solutions. Despite
this, profitability has developed positively. In 2020, Essity
achieved its highest adjusted EBITA and the highest adjusted EBITA
margin ever. The target for adjusted return on capital employed was
raised to above 17% by 2025.
During the year, Essity has:
- Increased its market shares in many markets
- Increased online sales to approximately SEK 15bn for the full year. Online accounted for
15% of net sales in the fourth quarter.
- Accelerated the digital transformation and launched digital
solutions, such as TENA SmartCare
- Broadened its offering with face masks and expanded supply
capacity for hand sanitizer
- Improved underlying growth in Medical Solutions. Organic net
sales for Wound Care increased 6.4% in the fourth quarter.
- Increased organic net sales in emerging markets by 2.6% and the
adjusted EBITA margin by 2.7 percentage points to 12.9%
- Achieved continuous cost savings of SEK
1,056m and launched the Manufacturing Roadmap
- Acquired the MedTech companies ABIGO Medical AB and
Novioscan
- Made a non-binding indicative proposal for the acquisition of
additional shares in Asaleo Care Limited
- Significantly strengthened the balance sheet and financial
position, which enable a higher rate of acquisitions.
- Qualified for the Dow Jones Sustainability Europe Index
- Reduced its carbon emissions by 11% according to Essity's
Science Based Targets, Scope 1 and 2
In 2020, organic net sales declined 1.9%. The adjusted gross
margin increased 3.0 percentage points to 32.5%. Adjusted EBITA
increased 11% and the adjusted EBITA marginal increased 2.2
percentage points to 14.5%. Adjusted return on capital employed
increased 1.9 percentage points to 15.7%. Earnings per share
increased 11% to SEK 14.56.
At an Extraordinary General Meeting on October 28, 2020, Essity resolved to pay a
dividend of SEK 6.25 per share. The
dividend was paid on November 4,
2020. For the 2020 fiscal year, the Board of Directors
proposes an increase in the dividend of 8% to SEK 6.75 per share.
The Group's organic net sales declined 0.5% in the fourth
quarter of 2020. The COVID-19 pandemic and related lockdowns and
restrictions had a negative effect on Essity's sales which mainly
impacted Professional Hygiene and Medical Solutions. Organic net
sales for retail increased 5.4%. The Group's organic net sales in
mature markets declined 5.1%. In emerging markets, which accounted
for 39% of net sales, organic net sales increased 6.5%. The
adjusted gross margin increased 1.0 percentage point to 32.7%.
Adjusted EBITA, excluding exchange rate effects, increased 2%. The
Group's adjusted EBITA margin increased 0.1 of a percentage point
to 14.2%. Adjusted return on capital employed increased 0.3 of a
percentage point to 16.1%. Earnings per share amounted to
SEK 3.76.
FUTURE REPORTS
Essity's Annual Report for 2020 is intended to be published
during the week starting March 1,
2021. In 2021, interim reports will be published on
April 23, July
16 and October 22.
ANNUAL GENERAL MEETING
Essity's Annual General Meeting will be held in Stockholm on March 25,
2021.
INVITATION TO PRESENTATION OF THE YEAR-END REPORT
2020
In conjunction with publication, a telephone and web
presentation will be held where President and CEO Magnus Groth will present and answer
questions.
Presentation
Date: Wednesday, January 27,
2021
Time: 9:00 a.m.
Link to web presentation:
https://essity.videosync.fi/2021-01-27-q4
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. 7569943.
Stockholm, January 27, 2021
Essity Aktiebolag (publ)
Magnus Groth
President and CEO
This report has not been reviewed by Essity's auditors.
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
NB:
This information is such 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
January 27, 2021.
Karl Stoltz, Media Relations
Manager, +46 (0)8 788 51 55
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/essity/r/year-end-report-2020,c3274602
The following files are available for download:
https://mb.cision.com/Main/15798/3274602/1364026.pdf
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SOURCE Essity