Essity has exited the Russian market

The hygiene and health company Essity has completed the divestment of its operations in Russia for a purchase price of approximately SEK 1.2bn on a cash and debt-free basis. Essity has thus exited Russia.

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 1.7bn.

“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,” says Magnus Groth, President and CEO of Essity.

In 2022, Essity’s net sales in Russia corresponded to about 2% 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 -0.5bn and will be reported as an item affecting comparability in the third quarter of 2023.  

For further information, please contact:
Per Lorentz, Vice President Corporate Communications, +46 733 13 30 55, per.lorentz@essity.com
Johan Karlsson, Vice President Investor Relations, +46 705 11 15 81, johan.ir.karlsson@essity.com

Essity is a leading global hygiene and health company. We are dedicated to improving well-being through our products and services. Sales are conducted in approximately 150 countries under the leading global brands TENA and Tork, and other strong brands, such as Actimove, JOBST, Knix, Leukoplast, Libero, Libresse, Lotus, Modibodi, Nosotras, Saba, Tempo, TOM Organic, Vinda and Zewa. Essity has about 48,000 employees. Net sales in 2022 amounted to approximately SEK 156bn (EUR 15bn). The company’s headquarters is located in Stockholm, Sweden, and Essity is listed on Nasdaq Stockholm. Essity breaks barriers to well-being and contributes to a healthy, sustainable and circular society. More information at www.essity.com.