Essity reduces costs to increase profitability and competitiveness
To strengthen the Group’s long-term cost efficiency, the hygiene and health company Essity today introduced a Group-wide cost-savings program. The program is expected to generate annual cost savings of approximately SEK 800m, with full effect at the end of 2019.For a number of years, Essity has reported sales growth and increased profitability. During the first half of 2018, the Group's margin has been negatively affected by significantly higher raw material costs. The rapidly increasing costs have, to a large extent, been offset by active work to increase prices, product mix improvements