Essity has presented financial targets based on its portfolio following the divestment of the subsidiary Vinda.
The targets put an emphasis on profitable growth and include annual organic sales growth of more than 3%.
The previous target was an annual sales growth of more than 5%, which included organic sales growth of more than 3% and acquisitions of approximately 2%.
It added that acquisitions “remain part of the company’s strategy” but are no longer included in the annual growth target.
Essity’s new target is an EBITA margin, excluding items affecting comparability (IAC), of more than 15%.
The previous target was return on capital employed (ROCE) excluding IAC of more than 17% by 2025, corresponding to an EBITA margin excluding IAC of approximately 13.5%.
Magnus Groth, President and Chief Executive, Essity, said: “Essity is in better shape than ever and is now further raising its level of ambition.
“Our aim is to grow organically by more than 3% per year, even without Vinda, while also reporting higher and more stable margins.
“Favourable market trends combined with Essity’s successful innovations, strong brands and efficiency initiatives provide us with the platform to gain market shares and improve the company’s profitability.”
Essity completed the divestment of its entire holding of 51.59% of shares in the Asian hygiene company Vinda for HKD 23.50 per share on 21 March 2024.
