Essity says business conditions have “worsened” due to Ukraine conflict.

 

In its Q1 2022 earnings report, Essity noted that its “conditions to pursue business in Russia have worsened” and that work has been initiated to exit this market altogether.

 

It’s quite a big step for Essity. In 2021, it generated revenue of around US$294 million in Russia, representing around two per cent of its total sales. It has three production plants in the country and employs 1300 staff there.

 

On a groupwide basis, Essity’s sales into the e-commerce channel grew organically by almost 13 per cent in the quarter to US$460 million, which was about 13 per cent of total revenue.

 

The company said its short-term priority is to continue implementing “significant price increases” to improve profitability.

 

Footnote: Essity Australasia was previously known Asaleo Care.

 

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