Essity

It is not possible to determine the exact expiration date of patents protecting Essity’s main products without specific knowledge of the company’s product portfolio. However, in general, patents granted by the USPTO have a term of 20 years from the date of filing. Therefore, if Essity has obtained patents for their main products, it is possible that they could expire within the next 20 years.

That is a matter of interpretation and comparison to other companies. It is not possible to determine without specific information on the legal expenses of Essity and other companies.

Yes, Essity’s products and services are largely based on a recurring revenue model. The company’s primary focus is on consumer products such as paper products, personal care products, and medical solutions that are consumed and repurchased on a regular basis. Additionally, Essity offers services such as hygiene and health solutions that often involve long-term contracts and ongoing relationships with clients, leading to recurring revenue streams.

Based on the company’s financial reports, the profit margin of Essity has slightly declined in recent years. In 2020, the company’s operating profit margin was 12.9%, compared to 14.8% in 2019 and 15.0% in 2018.
This decline could be attributed to a combination of factors, including increasing competition in the industry and a lack of pricing power. In the global tissue and hygiene market, Essity faces competition from several major players such as Procter & Gamble, Kimberly-Clark, and Unilever.
In addition, the COVID-19 pandemic has also impacted the company’s profitability as demand for its products, particularly in the professional hygiene segment, declined due to lockdowns and restrictions on businesses.
Furthermore, Essity has also experienced rising material costs, particularly for pulp and energy, which may have affected their ability to maintain margins.
Overall, while competition and market conditions may have played a role, it is difficult to pinpoint one specific factor as the main cause of the declining profit margins for Essity. The company is taking steps to improve profitability, such as cost-cutting measures and investments in digitalization, which could help boost margins in the future.

As a large and well-established company, Essity has a strong financial position and a track record of generating cash flow. Therefore, there are no significant liquidity concerns regarding the company.
Internally, Essity manages its cash flow efficiently and has a solid liquidity position to cover its operational needs. The company regularly monitors and manages its liquidity position through various measures, including optimizing working capital, managing debt maturity profiles, and implementing cost-cutting initiatives.
From an investor’s perspective, Essity’s stock is listed on major global stock exchanges, and the company has a significant market capitalization. This indicates that investors have confidence in the company’s financial stability and liquidity.
Overall, Essity has a strong financial foundation, which allows it to respond effectively to any liquidity challenges and meet its financial obligations.

1. Growing Concerns about Environmental Sustainability: Essity, like all consumer goods companies, is likely to face increasing pressure to demonstrate its commitment to sustainable business practices. This includes reducing its carbon footprint, using renewable materials, and minimizing waste. Failure to do so could lead to consumer backlash and reputational damage.
2. Rising Competition from Generic and Private Label Brands: Essity operates in a highly competitive market, facing pressure from large multinational companies as well as smaller local brands. The growing popularity of private label products and generic brands may erode its market share and impact its profitability.
3. Increasing Raw Material Costs: Essity relies on a steady supply of raw materials such as wood pulp and other fibers for its products. Fluctuations in the cost of these materials could impact the company’s financial performance. In addition, if the company is unable to secure a reliable and sustainable supply of raw materials, it could disrupt its production and affect its ability to meet demand.
4. Changing Consumer Preferences: Essity’s success is closely tied to its ability to meet consumer needs and preferences. As consumer preferences and behaviors shift towards more environmentally friendly and socially responsible products, the company may need to adapt its product offerings and business practices to remain competitive.
5. Technological Advancements: With the rise of e-commerce and digitalization, the way consumers purchase and interact with consumer goods is constantly evolving. Essity may face challenges in keeping up with these technological advancements, as well as potential disruptors in the form of new competitors and emerging technologies.
6. Regulatory Changes: The consumer goods industry is heavily regulated and subject to changing laws and regulations. Essity may face challenges and disruptions if new regulations are introduced, such as stricter packaging and labeling requirements or restrictions on certain ingredients used in its products.
7. Economic Downturns: The global economy is constantly fluctuating and any major economic downturn could have a significant impact on Essity’s business. In times of economic uncertainty, consumers may cut back on their spending, which could affect demand for the company’s products.
8. Political and Trade Uncertainties: Essity operates in multiple countries and is subject to various political and economic factors. Changes in trade policies, international relations, and geopolitical instability could disrupt the company’s supply chain, production, and sales, affecting its profitability.

There are potential disruptions in the supply chain of the Essity company, as with any global corporation. Some potential disruptions could include:
1. Natural disasters or weather events: Severe weather events such as hurricanes, floods, or earthquakes can disrupt transportation and production facilities, leading to delays or shortages in supplies.
2. Global pandemics: A widespread disease outbreak, such as the COVID-19 pandemic, can disrupt global supply chains by causing factory closures, transportation shutdowns, and labor shortages.
3. Political instability: Political unrest, protests, or changes in government policies can lead to disruptions in supply chains, especially in regions where Essity has production facilities or sources raw materials.
4. Economic instability: Economic downturns or financial crises can disrupt consumer demand and impact logistics and transportation, leading to delays and inventory challenges.
5. Trade restrictions: Tariffs, trade sanctions, or changes in trade agreements can disrupt global supply chains by increasing costs and creating trade barriers.
6. Supplier constraints: Essity relies on a network of suppliers to provide raw materials and components for its products. Any disruption or bankruptcy of a key supplier can impact the company’s supply chain and production.
7. Cybersecurity breaches: A cyberattack on Essity’s systems or its suppliers’ systems can disrupt operations and lead to delays or data breaches, affecting the company’s supply chain.
8. Labor disputes: Strikes, protests, or other disruptions in labor relations can impact production and distribution, causing disruptions in the supply chain.
9. Quality issues: Any defects or quality issues in Essity’s products or raw materials can lead to production delays or recalls, disrupting the supply chain.
Overall, Essity is vulnerable to supply chain disruptions that can impact its operations, production, and ability to meet customer demand. The company monitors and manages potential disruptions through risk assessment, contingency planning, and supplier diversification.

1. Decreasing Revenue and Profit: In its latest financial report, Essity reported a decrease in both revenue and profit compared to the previous year. This could be a cause for concern as it could indicate a decline in demand for its products or potential pricing pressures.
2. High Debt Levels: Essity’s long-term debt has been increasing in recent years and as of 2021, its debt-to-equity ratio stands at over 100%. This could make the company vulnerable to economic downturns and limit its potential for growth.
3. Declining Operating Margins: The company’s operating margins have been steadily decreasing over the past few years, which could indicate challenges in controlling costs and maintaining profitability.
4. Dependence on Mature Markets: Essity generates a significant portion of its revenue from mature markets such as Europe and North America. This could make the company vulnerable to changes in consumer preferences or economic downturns in these regions.
5. Environmental Concerns: As a manufacturer of personal hygiene, tissue, and medical products, Essity’s operations could have negative environmental impacts. The company has been criticized for its sourcing practices and lack of transparency in its sustainability efforts.
6. Legal Issues: Essity has been involved in several legal cases related to product safety and environmental impact. These could result in costly settlements and damage the company’s reputation.
7. Dependency on Raw Materials: The company’s products rely heavily on pulp and paper, which are subject to price fluctuations. This could impact the company’s profitability if there are sudden increases in raw material costs.
8. Competition: Essity operates in a highly competitive market with numerous other companies offering similar products. This could result in pricing pressure and make it difficult for the company to maintain its market share.
9. Volatile Currency Exchange Rates: As a global company, Essity is exposed to currency risks due to fluctuations in foreign exchange rates. This could impact its financial results and make it difficult to forecast future earnings.
10. Pension Liabilities: Essity has a significant pension liability due to its large employee base. Unfavorable changes in pension regulations or market conditions could result in large expenses for the company.

There are a few unresolved issues with Essity that have persisted in recent years:
1. Legal challenges: In 2018, former employees of Essity’s tissue mill in Mexico filed a lawsuit against the company, alleging they were exposed to dangerous chemicals that resulted in health issues. Essity has denied the claims and the case is ongoing.
2. Environmental concerns: In 2019, Essity was accused of illegally sourcing wood from protected areas in the Amazon rainforest for its production of tissue products. The company faced criticism for not having a strict enough policy on sustainable sourcing and using unsustainable practices.
3. Human rights concerns: In 2020, Essity’s hygiene and health products were found to be made with cotton sourced from Uzbekistan, where child and forced labor are known to occur in the cotton industry. Despite efforts to address this issue, a report by the Responsible Sourcing Network found that some of Essity’s suppliers were still sourcing from this region.
4. Product recalls: There have been several product recalls in recent years for various Essity products, including baby wipes containing bacteria, and Tork-branded toilet paper that was falsely advertised as being 100% compostable.
While Essity has taken steps to address these issues, there are still ongoing challenges and criticisms surrounding the company’s practices and policies.

Yes, there are concentration risks related to the Essity company.
One major concentration risk is its heavy dependence on the sales of hygiene and health products. As a leading global hygiene and health company, Essity generates majority of its revenues from this segment, which includes products such as diapers, feminine care products, incontinence products, and medical solutions. In 2020, this segment accounted for 89% of Essity’s net sales. This heavy dependence on one product category makes Essity vulnerable to any disruptions or downturns in the market for hygiene and health products.
Another concentration risk is its reliance on a small number of large customers. A significant portion of Essity’s sales come from a limited number of customers, with its top 10 customers accounting for approximately 25% of its net sales in 2020. Losing one or more of these major customers could have a significant impact on Essity’s financial performance.
Geographic concentration is also a risk for Essity. The company generates a large portion of its sales from Europe, with the region accounting for 60% of its net sales in 2020. This makes Essity vulnerable to economic and political risks in Europe, such as changes in regulations or economic downturns.
Additionally, Essity’s production is highly concentrated in a few key countries such as Sweden, Germany, and the United States. A disruption in production due to natural disasters, supply chain issues, or labor disputes in these countries could have a significant impact on its operations and financial performance.
Lastly, Essity is exposed to currency risks as it operates in multiple countries and generates a significant portion of its sales in currencies other than its reporting currency, the Swedish krona. Fluctuations in exchange rates could adversely affect its financial results.
Overall, the concentration risks related to the Essity company make it vulnerable to external factors and highlight the potential impact on its financial performance. Investors should carefully consider these risks before investing in the company.

There are no major financial or legal problems associated with Essity in recent years. In fact, the company has reported steady financial performance with an increase in net sales and operating profit in 2020 compared to the previous year. However, there have been some minor legal issues, such as a patent infringement lawsuit by Procter & Gamble against Essity’s TENA brand of incontinence products in the United States, which was settled in 2019. Additionally, the company has faced some criticism and legal action for its role in the asbestos industry in the past, but there have been no significant issues in recent years. Overall, there are no major problems or controversies associated with Essity as a company.

Yes, there are substantial expenses related to stock options, pension plans, and retiree medical benefits at Essity. These expenses are included in the company’s annual report and financial statements.
Stock options: Essity offers stock options as part of its employee compensation packages. These options give employees the right to purchase company stock at a predetermined price in the future. In 2019, the company reported stock option expenses of SEK 227 million (approximately $24 million).
Pension plans: Essity provides pension benefits to its employees, primarily through defined contribution plans. In 2019, the company’s pension expenses amounted to SEK 586 million (approximately $62 million).
Retiree medical benefits: Essity also offers retiree medical benefits to eligible employees. In 2019, the company reported expenses of SEK 600 million (approximately $64 million) related to these benefits.
These expenses are significant factors in the company’s overall cost structure and can have a significant impact on the company’s financial performance.

Yes, Essity may face risks of technological obsolescence if they do not keep up with technological advancements and adapt their products and processes accordingly.
Some potential factors that may contribute to this risk are:
1. Rapid technological change: The paper and hygiene industry is constantly evolving and new technologies are emerging, making it crucial for companies like Essity to stay updated and incorporate new innovations into their products and processes. If they fail to do so, their competitors who are utilizing new technologies may gain an advantage in the market.
2. Consumer demand for innovative products: Consumers are increasingly seeking products that are innovative, efficient and environmentally sustainable. Essity may face risks of losing customers if they do not utilize new technologies to meet these evolving demands.
3. Environmental regulations: As governments around the world are becoming more stringent on environmental regulations and circular economy initiatives, there is a growing need for companies to adopt more sustainable practices. If Essity does not invest in and implement new technologies to reduce their environmental impact, they may face penalties and jeopardize their reputation.
4. Disruptive technologies: New and disruptive technologies, such as digitalization and automation, are transforming the traditional paper and hygiene industry. Companies that fail to adapt to these changes may become obsolete and struggle to remain competitive in the market.
5. Supply chain disruptions: Technological obsolescence may also impact Essity’s supply chain, especially if their suppliers are using outdated technologies. This can result in delays and inefficiencies, affecting the company’s overall performance and profitability.
In order to mitigate the risks of technological obsolescence, Essity needs to continuously monitor and invest in emerging technologies, collaborate with innovative partners, and stay ahead of industry trends. They also need to focus on building a culture of innovation and agility within their organization to ensure they are able to adapt to rapid changes in the market.

There is no information available to suggest that Essity has had a significant influence from activist investors in recent years. Essity is a major global company in the hygiene and health industry, with a strong market position and a solid financial performance. The company has a stable ownership structure and a long-term perspective, which may not make it an attractive target for activist investors. There have been no reports of activist investors taking a significant stake in the company or exerting pressure on its management.

The extent of business clients’ negotiating power over pricing and other conditions with the Essity company would largely depend on their size, industry, and market share. Generally, larger and more established businesses with a significant market share would have more negotiating power compared to smaller or newer businesses.
Some factors that may contribute to business clients’ negotiating power with Essity company include:
1. Market share and competition: If a particular business client holds a large market share and has strong competition in their market, they may have more bargaining power with suppliers like Essity. This is because the supplier would not want to lose a significant client to their competitors.
2. Alternatives and substitutes: If a business client has access to alternative suppliers or substitutes for Essity’s products, they can use this as leverage in negotiations. The supplier may be more willing to offer competitive prices and favorable terms to retain the business.
3. Volume of purchases: Businesses that purchase large quantities of products from Essity are likely to have more negotiating power. This is because their purchases have a significant impact on the supplier’s overall sales and revenue.
4. Relationship with the supplier: A strong and long-standing relationship with Essity can also give business clients more power in negotiations. The supplier may be more willing to accommodate their demands to maintain the relationship and potentially secure future business.
5. Ability to switch suppliers: If a business client can easily switch to another supplier, they may have more negotiating power. This is particularly relevant in industries where there are many suppliers and low switching costs.
Ultimately, the extent of business clients’ negotiating power over pricing and other conditions with Essity will depend on the specific dynamics of their relationship with the company. However, it is worth noting that Essity is a large, global company with a diverse portfolio of products, which may give them more negotiating power in certain situations.

It is difficult to determine the exact negotiating power of suppliers for the Essity company as it can vary depending on the specific product or service being supplied. However, overall, suppliers may have some negotiating power due to the size and global presence of Essity, which allows them to have a range of supplier options. Additionally, supply chain disruptions, changes in raw material costs, and market demand can also influence the negotiating power of suppliers.
On the other hand, Essity is a large and established company with a strong purchasing power, which can give them leverage in negotiations and the ability to source materials and services at competitive prices. Essity also has a Supplier Code of Conduct that outlines their expectations for responsible and ethical business practices, which may give them more control in negotiations and supplier relationships.
Ultimately, the level of negotiating power of suppliers for Essity can vary and may depend on the specific circumstances and dynamics of the industry and market. Overall, it is likely that both parties engage in negotiations and work together to find mutually beneficial solutions and terms.

It is difficult to determine the exact impact of Essity's patents on the barriers to entry in the market for its competition without specific information about the company's patent portfolio. However, as a global hygiene and health company, Essity likely has a significant number of patents covering various products and technologies in its industry. These patents can provide a barrier to entry for competitors by preventing them from replicating or using similar products or technologies without facing legal consequences. Additionally, patents can also make it more difficult and expensive for competitors to develop innovative products that are not covered by Essity's patents. However, it is important to note that patents are not the only factor that can create barriers to entry in a market, and other factors such as brand recognition, distribution channels, and economies of scale also play a role.

It is possible that some clients of Essity may purchase their products out of habit, particularly if they have been using them for a long time and are satisfied with their quality and effectiveness. However, it is also possible that clients may continue to purchase Essity products based on brand loyalty or because they have become accustomed to the convenience of the products. Ultimately, purchasing habits can vary among different clients and factors such as product effectiveness, price, and brand reputation can all influence their purchasing decisions.

It is likely that the products of Essity have some degree of price elasticity, as most consumer products do. However, the specific degree of elasticity would vary depending on the product and market conditions. For example, products that are considered necessities, such as toilet paper or diapers, may have lower price elasticity because consumers are willing to pay more for these items. On the other hand, products that are more discretionary, such as luxury skincare products, may have higher price elasticity as consumers may be more sensitive to price changes for these items. Overall, the price elasticity of Essity's products would depend on various factors and would need to be evaluated on a case-by-case basis.

The current management of Essity has consistently produced above average ROIC in recent years. In 2020, the company reported an ROIC of 14.2%, which is higher than the industry average of 10.9%. In the previous three years, the company’s ROIC has been consistently above 13%, indicating strong profitability and efficient capital allocation by management. Overall, the company’s performance under current management has been consistently better than the industry average.

Yes, Essity does benefit from economies of scale and customer demand advantages that contribute to its dominant market share.
Economies of scale refer to the cost advantages that a company achieves by producing on a larger scale. As a global company with a wide range of products, Essity is able to produce and sell its products in large quantities, which allows it to benefit from lower production costs per unit. This enables Essity to offer competitive prices to customers, making it a more attractive option in the market.
In addition, Essity has a strong customer demand advantage due to its well-established brand reputation and loyal customer base. The company offers high-quality and innovative products that meet the needs and preferences of its customers, which has led to a strong demand for its products. This gives Essity a competitive edge over its rivals and contributes to its dominant market share.
Moreover, Essity operates in multiple markets, including personal care, consumer tissue, and professional hygiene, which allows it to diversify its revenue streams and reduce its reliance on any one market segment. This further strengthens its position in the market and makes it difficult for competitors to challenge its dominant share.
Overall, the combination of economies of scale, strong customer demand advantages, and diversification of markets has helped Essity to establish a dominant market share in the industries in which it operates.

Yes, Essity company does benefit from economies of scale. As a global company operating in the consumer goods and healthcare industries, Essity has a large production and distribution network which enables it to achieve cost savings through increased efficiency and productivity.
Some examples of how Essity benefits from economies of scale include:
1. Production costs: With a large-scale production network, Essity is able to produce its products in larger quantities, thereby reducing the per-unit production costs. This also enables the company to negotiate lower prices for raw materials and other inputs, resulting in cost savings.
2. Distribution costs: Essity’s widespread presence allows it to distribute its products over a larger geographical area, thereby reducing transportation and distribution costs. This helps the company to offer competitive prices to its customers.
3. Marketing and advertising: As a major player in the consumer goods industry, Essity has the financial resources to invest in marketing and advertising campaigns on a large scale. This helps the company to reach a wider audience and promote its brand, leading to increased sales and market share.
4. Research and development: As a large company, Essity is able to invest significant resources in research and development activities. This allows them to develop more innovative and cost-effective products, further increasing their economies of scale.
Overall, economies of scale enable Essity to achieve higher levels of efficiency and cost savings, which can be passed on to its customers in the form of lower prices and to the company in the form of increased profits.

It is difficult to make a general assessment as every company strategy and needs are different. However, it does appear that Essity has a high number of acquisitions in its history and continues to make strategic acquisitions as part of its growth strategy. This may indicate a reliance on acquisitions to drive growth and expansion, but it could also be a successful and effective strategy for the company. Ultimately, the success and sustainability of Essity will depend on a variety of factors, including its acquisition strategy.

There is no evidence to suggest that Essity engages in aggressive or misleading accounting practices. The company is publicly listed on several stock exchanges and is subject to regulatory oversight and audits. Their financial statements are prepared in accordance with international accounting standards and are reviewed by external auditors. Essity also has a Code of Conduct that includes guidelines for ethical and responsible business practices, including truthful and accurate financial reporting.

It does not appear that Essity faces a significant product concentration risk. The company offers a diverse range of products and services in the hygiene and health industry, including personal care, tissue, and professional hygiene products. They have a broad customer base and operate in over 150 countries, reducing their reliance on specific products for revenue. Additionally, Essity conducts continuous research and development to innovate and expand its product portfolio, further minimizing its product concentration risk.

There is no clear answer to this question as it ultimately depends on the individual perspectives of security analysts. However, it can be said that Essity is a large company with several different business areas and a global presence, which may make it challenging for security analysts to fully understand and assess all aspects of the company. Additionally, Essity does have multiple subsidiaries operating internationally, which may add complexity to the company’s overall structure and operations.

Yes, the Essity company has a disciplined corporate strategy that focuses on sustainability, innovation, profitability, and growth. Their strategy is centered around three themes: Cost Leadership, Innovation and Growth, and Market Value. They have a clear set of goals and objectives for each theme, and regularly review and adjust their strategy to ensure they are meeting their targets and staying competitive in the market. Their commitment to sustainability is also integrated into their corporate strategy, with specific targets and initiatives for reducing their environmental impact and promoting responsible business practices.

It is difficult to determine the exact conglomerate discount for Essity as it is currently a publicly traded company and its exact valuation can fluctuate. However, as a large multinational corporation with diverse operations in different industries, it is likely that Essity may have a higher conglomerate discount compared to a smaller, more focused company. This is because investors may be less willing to pay a premium for a company that operates in multiple industries and may prefer to invest in companies with a narrower focus. However, Essity has a solid financial performance and strong brand recognition, which may mitigate the impact of a potential conglomerate discount.

There is no information available that suggests Essity has a history of bad investments. Essity is a leading global hygiene and health company with a strong track record of financial performance and strategic investments.

According to Essity’s 2020 Annual and Sustainability Report, the company has a defined contribution pension plan for its employees. This means that employees contribute a certain percentage of their salary into the plan, which is then invested and the final retirement benefits are based on the investment performance.
In terms of returns and stability, it is difficult to provide a definitive answer as the performance of the pension plan can vary depending on market conditions and the types of investments made. However, in general, Essity’s 2020 Annual and Sustainability Report states that the company’s pension plan is considered to be well-funded and that investments are managed with the goal of securing stable returns over the long term. Additionally, the report states that the pension plan is regularly assessed to ensure it remains on track to meet its obligations.

It is unclear whether Essity has access to cheap resources that give it an advantage over its competitors. The company is a global player in the hygiene and health industry, with operations in over 150 countries. As a large and established company, it may have the ability to negotiate favorable terms for resources such as labor and capital. However, it also faces competition from other major players in the market, which could affect its access to cheap resources. Additionally, the company’s focus on sustainable and responsible sourcing may limit its ability to rely on cheap resources that may not meet its standards. Overall, it is difficult to determine if Essity has a distinct advantage in terms of accessing cheap resources compared to its competitors.

It is not possible to determine the financial performance of individual divisions within the Essity company, as the company does not publicly disclose this information. However, according to the company’s annual report, Essity’s overall financial performance has been profitable and stable in recent years. Therefore, it is unlikely that poor performance in certain divisions would significantly impact the company’s overall record.

As a public company, Essity does have various insurance policies to cover potential liabilities. This includes general liability insurance, directors and officers liability insurance, environmental liability insurance, and product liability insurance. These policies are intended to protect the company from financial losses in case of lawsuits or other claims related to its products, services, operations, or employees. Essity’s insurance coverage is regularly reviewed and updated to ensure adequate protection against potential liabilities.

As a leading global hygiene and health company, Essity does have exposure to high commodity-related input costs. These costs primarily include wood pulp, crude oil, and other raw materials used in the production of its hygiene and health products.
The impact of these input costs on Essity’s financial performance can be seen in its annual report. In recent years, the company has noted that rising commodity prices have had a negative impact on its earnings, as it is one of the major cost categories for the company. In 2018, for example, higher costs for raw materials and energy had a negative effect on the company’s operating profit by approximately SEK 450 million.
In 2019, Essity implemented price increases and cost-saving measures to mitigate the impact of high input costs. However, the company’s profitability was still affected by higher raw material and energy costs, along with unfavorable currency effects. In its 2019 annual report, Essity stated that it expects input costs to continue to be a challenge in the coming years.
Overall, the company’s financial performance has been impacted by high commodity-related input costs, but Essity has taken steps to manage and mitigate these costs through price increases and cost-saving measures.

Yes, Essity has significant operating costs, which include both production costs and administrative costs.
The main drivers of Essity’s operating costs include raw materials, manufacturing and production expenses, labor costs, transportation and logistics costs, marketing and advertising expenses, research and development costs, and administrative expenses such as salaries, benefits, and overhead costs.
Some specific factors that can impact Essity’s operating costs include fluctuations in the cost of key raw materials such as pulp, energy costs, currency exchange rates, and overall market demands and competition. The company’s focus on sustainability and innovation can also impact its operating costs as they invest in environmentally friendly production processes and new product development. In addition, Essity’s global reach can also result in increased operating costs due to varying regulations, taxes, and market conditions in different regions.

Based on Essity’s 2020 Annual Report, the company’s total assets were valued at approximately SEK 93.3 billion, with SEK 14.4 billion classified as inventory and other current assets. This means that approximately 15% of the company’s assets can be classified as illiquid. However, it is unclear what proportion of this illiquid assets are held in illiquid assets, as the company does not disclose this information in its financial reports. Therefore, it is difficult to determine the exact share of illiquid assets held by Essity.

It is difficult to determine if Essity experiences periodic increases in accounts receivable without access to their financial records. However, it is common for companies to experience fluctuations in their accounts receivable due to various reasons such as:
1. Seasonal demand: If Essity’s products are seasonal in nature, they may experience a surge in sales during certain times of the year. This would result in a corresponding increase in accounts receivable.
2. Credit terms: If Essity offers its customers longer payment terms or extends credit to them, it may lead to a higher accounts receivable balance.
3. Growth in sales: As Essity’s business grows and they sell more products, their accounts receivable will also increase.
4. Delay in payments: If Essity’s customers are slow in paying their invoices, it can lead to a buildup in accounts receivable.
5. Customer defaults: In case Essity’s customers are unable to pay their outstanding balances, it can result in an increase in bad debt and accounts receivable.
6. Acquisitions: If Essity acquires other companies or businesses, they may inherit their accounts receivable, resulting in an increase in their own accounts receivable balance.
7. Economic conditions: In times of economic downturn, customers may delay or default on payments, leading to an increase in accounts receivable for Essity.
8. Inaccurate billing or invoicing: Errors in billing or invoicing can result in delayed payments, causing an increase in accounts receivable.
9. Foreign exchange fluctuations: If Essity operates in international markets, changes in currency exchange rates may impact their accounts receivable balance.
10. Collection policies: The effectiveness of Essity’s collection policies and procedures can also impact the level of accounts receivable. Inefficient collection practices can lead to a higher balance, while effective policies can help reduce it.

Yes, Essity possesses unique know-how that gives it an advantage over its competitors. The company has developed a deep understanding of consumer needs and preferences, as well as strong relationships with retailers and suppliers. This knowledge and experience have allowed the company to develop innovative products and solutions that meet the diverse needs of its customers. Additionally, Essity has a strong focus on sustainability, with its knowledge and expertise in this area giving it a competitive advantage in the market. The company also invests in research and development, continuously improving its production processes and developing new technologies, further strengthening its competitive position.

No, the success of a company is not solely reliant on having a superstar employee. While having talented and dedicated employees can certainly contribute to a company’s success, it takes a combination of factors, including effective leadership, a strong organizational culture, and a clear strategic direction, to achieve great results. Additionally, the contributions of all employees, not just one individual, are crucial to the overall success of a company.

There is no definitive answer to this question as it would depend on a variety of factors such as the current state of Essity's production facilities, their age and condition, as well as market and technological developments.
However, as a large multinational company with diverse product offerings and a presence in multiple industries, it is likely that Essity would require a significant amount of capital investments to maintain and continuously update its production facilities. This is necessary to stay competitive in the market, meet changing consumer demands, and comply with industry standards and regulations.
In their 2020 Annual Report, Essity stated that their investments in production facilities were approximately SEK 4.2 billion (equivalent to approximately $500 million) in 2020, and they expect a similar level of investment in the coming years. This indicates that Essity does indeed require significant capital investments to maintain and update its production facilities.
Additionally, as a company focused on sustainability and innovation, Essity has a strong commitment to continuously improving its production processes and facilities to reduce environmental impact and increase efficiency. This would also require significant capital investments.
Overall, while specific figures may vary, it can be assumed that Essity would require ongoing and significant capital investments to maintain and continuously update its production facilities.

It is difficult to determine the exact spread of Essity's stock on the stock exchange without specific information on a particular trading day. However, in general, the spread (or difference between bid and ask prices) of a stock can be affected by a number of factors, including overall market volatility, trading volume, and the availability of buyers and sellers.
Additionally, Essity is a large and well-established company, with a market capitalization of over 160 billion SEK as of October 2021. This level of size and stability can sometimes result in smaller spreads, as there may be a larger number of buyers and sellers looking to trade the stock.
On the other hand, if there is a low trading volume or other market factors at play, the spread may widen. Ultimately, it is important for investors to carefully monitor the spread and consider market conditions when trading Essity's stock.

It is difficult to determine whether Essity company suffers from significant competitive disadvantages without conducting a thorough analysis of their market position and competition. However, based on their financial performance and market presence, it appears that Essity faces strong competition from other companies in the hygiene and health products industry. Some potential competitive disadvantages that Essity may face include:
1. High Competition: Essity operates in a highly competitive market, with major competitors including Procter & Gamble, Kimberly-Clark, and Unilever. These companies have strong brand recognition, extensive product portfolios, and established distribution networks, which could be a significant disadvantage for Essity.
2. Dependence on Commodity Prices: Essity relies heavily on inputs such as pulp, oil, and other raw materials to manufacture its products. Fluctuations in commodity prices could have a significant impact on the company’s bottom line, making it challenging to compete with competitors who have better control over their supply chain costs.
3. Limited Product Diversification: While Essity produces a wide range of hygiene and health products, its product portfolio is not as diverse as its competitors. This gives competitors a potential advantage in reaching a wider range of customers and catering to different market segments.
4. Difficulty in Differentiating Products: With a large number of competitors in the market, it can be challenging for Essity to differentiate its products from others in terms of features, quality, and price. This could make it difficult for the company to stand out and attract customers.
5. Geographic Dependence: Essity has a strong presence in Europe, North America, and Asia, with limited operations in other regions. This geographic dependence exposes the company to risks such as political instability, economic downturns, and changes in consumer preferences in these regions.
Overall, while Essity is a well-established company with a strong market presence, it may face several competitive disadvantages that could impact its growth and profitability in the long run.

Yes, Essity primarily uses debt as part of its capital structure. As of 2020, approximately 58% of Essity's capital was in the form of debt, with the rest made up of equity. The company utilizes various debt instruments, such as bonds and loans, to fund its operations, investments, and acquisitions. However, Essity also has a strong equity base, with its largest shareholders being the founding family and institutional investors.

There are several factors that could potentially lead the Essity company to stop paying or significantly reduce dividends in the coming years. These include:
1. Economic downturn or instability: If there is an economic downturn or instability in the global market, it can affect the overall sales and profitability of the company. This, in turn, can impact the company’s ability to generate enough cash flow to pay dividends to its shareholders.
2. Changes in consumer behavior: The tissue and personal care industry is highly consumer-driven. Any significant changes in consumer behavior, such as a shift towards more sustainable or cheaper products, can impact the company’s sales and profitability.
3. Increasing competition: As the tissue and personal care industry is highly competitive, any increase in competition, either from established players or new entrants, can affect Essity’s market share and profits, potentially leading to a decrease in dividends.
4. Increase in operational costs: If there is a sudden increase in the cost of raw materials, production, or distribution, it can put pressure on the company’s profitability. In such a situation, Essity may choose to reduce dividends to conserve cash and invest in improving its operations.
5. Legal or regulatory challenges: If the company faces any legal or regulatory challenges, such as lawsuits, fines, or changes in regulations, it can lead to significant financial burdens, ultimately affecting its ability to pay dividends.
6. High levels of debt: If Essity takes on a significant amount of debt to fund acquisitions or expansion, it may have to prioritize debt repayment over dividend payments to maintain strong financial health.
7. Lack of growth opportunities: If the company is not able to generate growth through new product development, market expansion, or other means, it may result in stagnant sales and profits, making it difficult for Essity to maintain its current level of dividend payments.
Overall, while Essity currently has a strong financial position and a track record of consistently paying dividends, these potential risks and challenges could lead to a decrease in dividends in the coming years. As with any investment, it is important for shareholders to carefully consider these factors when evaluating the potential risks and rewards of investing in Essity.

It does not seem that Essity has been struggling to attract new customers or retain existing ones in recent years. The company has reported consistent revenue growth and strong customer retention rates. However, like any business, Essity may face challenges in certain markets or with certain products from time to time.

According to our research, there is no record of Essity being involved in any legal cases related to unfair competition as either a victim or an initiator. Essity has a reputation for ethical and responsible business practices and is committed to fair competition in the marketplace. The company has a code of conduct that governs its operations and has implemented various policies and procedures to ensure compliance with all applicable laws and regulations. Essity has also established a Compliance & Governance function that oversees and monitors compliance across the organization, including the prevention of unfair competition. Additionally, the company has a dedicated whistleblower system in place to receive and address any reports of suspected unfair competition.

Yes, the Essity company (previously known as SCA) has faced issues with antitrust organizations in the past.
In 2014, the European Commission launched an investigation into SCA’s tissue and personal care products in multiple European countries, following complaints from competitors about practices that may have violated EU antitrust rules. The investigation focused on alleged anti-competitive behaviors such as price coordination, market sharing, and exchange of commercially sensitive information. In 2015, the Commission issued a statement of objections to SCA, accusing the company of violating EU antitrust rules. As a result, SCA agreed to settle the case by paying a fine of €68 million and committing to changes in its commercial practices.
In 2018, the Turkish Competition Board fined Essity (then SCA) and two other companies for participating in a cartel in the personal care market in Turkey. Essity was fined approximately $478,000, and the company also faced a civil lawsuit filed by a Turkish distributor seeking compensation of $22 million.
In addition to these cases, Essity has also been investigated by antitrust authorities in other countries, including Colombia, Ecuador, and South Africa, for alleged anti-competitive behaviors. However, these cases did not result in any significant penalties or fines for the company.

Yes, the Essity company has experienced a significant increase in expenses in recent years. The main drivers behind this increase include:
1. Rising raw material costs: Essity, being a consumer goods company, relies heavily on various raw materials such as pulp, paper, plastics, and chemicals. These raw material costs have been steadily increasing in recent years, which has led to an increase in production costs for Essity.
2. Increased marketing and advertising expenses: As a global company, Essity has been investing heavily in marketing and advertising efforts to promote its products and increase brand awareness. This includes investments in digital marketing and social media campaigns, as well as traditional advertising methods. These expenses have been on the rise in recent years to stay competitive in the market.
3. Strategic investments and acquisitions: Essity has been expanding its presence in both domestic and international markets through strategic investments and acquisitions. For example, in 2017, the company acquired European tissue manufacturer, BSN medical, for EUR 2.7 billion. Such investments and acquisitions have resulted in higher expenses for Essity.
4. Research and development (R&D) costs: As a company that operates in the fast-paced consumer goods industry, Essity has to constantly invest in R&D to stay ahead of the competition. These R&D costs have increased over the years as the company continuously develops innovative products and improves its existing ones.
5. Employee-related expenses: With operations in over 150 countries, Essity has a large and diverse workforce. As a result, employee-related expenses such as salaries, benefits, and training costs have also increased in recent years.
6. Currency fluctuations: Essity operates in various countries with different currencies, and fluctuations in currency exchange rates can impact its expenses. In recent years, the company has been negatively affected by a stronger US dollar, which has led to higher expenses in certain regions.

It is unclear if Essity has specifically implemented a flexible workforce strategy such as hire-and-fire or if it has made significant changes in its staffing levels in recent years. In their annual report for 2019, the company does mention that they have implemented various measures to improve efficiency and reduce costs, including restructuring and downsizing in certain areas.
In terms of profitability, Essity’s operating profit margin increased from 12.2% in 2017 to 13.4% in 2018, but decreased to 12.8% in 2019. This could potentially be attributed to changes in staffing levels or a flexible workforce strategy, but it is not specified in the annual report.
Additionally, it is worth noting that Essity has a strong focus on sustainability and employee well-being. They have been recognized as a top employer in various countries and have initiatives in place to promote diversity and equal opportunities within the company. These values may indicate that they prioritize long-term stability and employee retention rather than a hire-and-fire approach.

Essity, as a global company with operations in multiple countries, has not publicly disclosed any specific labor shortages or difficulties in staffing key positions in recent years. However, like many companies, Essity faces challenges in recruiting and retaining qualified talent in certain regions and industries. This may be due to factors such as competition for skilled workers, changes in the labor market, and shifting demographics. Essity continually strives to attract and retain top talent through various recruitment, training, and development programs.

There is no evidence to suggest that Essity has experienced significant brain drain in recent years. In fact, the company has a strong track record of retaining talent and promoting from within. Essity has consistently been ranked as one of the top employers in various industries and has also received recognition for its employee development programs.
Additionally, Essity has also invested in attracting top talent through its global graduate program and partnerships with leading universities. The company also actively promotes career development and offers various training and development opportunities for its employees.
In terms of executive turnover, Essity has had stable leadership with CEO and President Magnus Groth leading the company since it was spun off from SCA in 2017. The company also has a diverse and experienced executive team with leaders from different backgrounds and industries.
Overall, there is no indication that Essity has experienced significant brain drain in recent years. The company continues to attract and retain top talent and invests in developing its employees.

There have been some leadership departures at Essity in recent years, but they have not been significant in terms of numbers or impact on operations and strategy.
In 2017, the company announced that Magnus Groth would be stepping down as President and CEO due to personal reasons. This was the only leadership departure announced that year. Groth had been with the company for over 10 years and had been CEO since 2008. He was credited with transforming Essity into a leading global hygiene and health company.
In 2019, Annemarie Gardshol was appointed as the new President and CEO of Essity, replacing interim CEO Urban Lennbåge. Gardshol had been with the company since 2014 and had served as the President of the company’s Global Hygiene Category division.
In terms of potential impacts on operations and strategy, there do not seem to have been any major changes or disruptions due to these leadership departures. Essity has maintained its focus on hygiene and health products, as well as its commitment to sustainability and innovation. The company’s financial performance has also remained strong, with continued growth and profitability.
Overall, while there have been some changes in leadership at Essity in recent years, they do not appear to have had a significant impact on the company’s operations or strategic direction.

Yes, Essity has faced challenges related to cost control in recent years. In its 2019 Annual Report, the company identified several cost-related challenges, including:
1. Raw material prices: The company stated that rising raw material prices, particularly for pulp, impacted its cost control efforts. This was due to factors such as supply shortages and increased demand.
2. Production disruptions: Essity faced production disruptions at some of its facilities, resulting in additional costs and affecting its ability to meet demand.
3. Foreign exchange rates: Changes in foreign exchange rates can impact the company’s production costs and profitability, as a significant portion of its revenues and costs are in currencies other than its reporting currency.
4. Increasing transportation costs: The rising cost of transportation, including fuel and logistics, has affected the company’s supply chain and overall costs.
To address these challenges, Essity has implemented several cost-saving initiatives, such as optimizing its supply chain, improving production efficiency, and increasing digitalization to reduce expenses. The company also continuously monitors its costs and makes adjustments as needed to maintain its competitiveness and financial performance.

It is not clear if Essity has faced any specific challenges related to merger integration in recent years. However, the company has been involved in several mergers and acquisitions in the past decade, including the merger of SCA’s hygiene business and the acquisition of BSN medical. These mergers and acquisitions have likely posed some integration challenges, such as cultural differences, operational integration, and integration of different systems and processes.
Some key issues that Essity may have encountered during the integration process could include:
- Cultural integration: One of the major challenges in any merger or acquisition is integrating the cultures of two organizations. Different company cultures can lead to conflicts and resistance to change, which can hinder the integration process.
- Operational integration: When two companies merge, there are often overlaps in operations and processes. The integration of these operations can be complex and time-consuming, and if not managed effectively, can result in disruptions and inefficiencies.
- Integration of systems and processes: In addition to operational integration, merging companies often have different systems and processes in place. Integrating these systems can be a significant challenge, as it requires data migration, training, and change management.
- Employee retention and engagement: Mergers and acquisitions can create uncertainty and anxiety among employees, which can lead to attrition and loss of key talent. It is important for companies to effectively communicate and involve employees in the integration process to ensure their retention and engagement.
- Legal and regulatory challenges: Mergers and acquisitions also have legal and regulatory implications, which can create challenges during the integration process. Companies need to ensure compliance with all applicable laws and regulations to avoid any potential legal or financial issues.
- Financial challenges: Merger integration can be expensive, with costs associated with restructuring, severance packages, and operational changes. There may also be short-term financial challenges as the merged companies adjust to the new structure and operations.
Overall, merger integration can be a complex and challenging process, and it requires careful planning, effective communication, and strong leadership to ensure a successful integration.

It is unlikely that Essity has not faced any issues when launching new production facilities, as is the case with most companies when expanding their operations. Some potential issues that Essity may have faced include:
1. Regulatory challenges: When launching new production facilities, companies often have to adhere to numerous laws and regulations related to health and safety, environmental protection, labor laws, and building codes. Complying with these regulations can be time-consuming and costly, and failure to do so can result in delays or fines.
2. Supply chain disruptions: New production facilities may require the procurement of new raw materials, equipment, and transportation logistics. If there are any disruptions in the supply chain, it can delay the launch of the facility or affect the quality and efficiency of production.
3. Financial challenges: Launching new production facilities can be a significant investment for companies, and they may face financial challenges such as securing funding, managing cash flow, and meeting budgetary constraints.
4. Technical difficulties: Integrating new technologies and production processes into a new facility can be challenging and may require specialized expertise and training for employees. Technical difficulties can slow down the launch of the facility and affect its productivity.
5. Hiring and training employees: Setting up a new production facility may require hiring and training a large number of employees. This can be a time-consuming and resource-intensive process, and finding skilled workers may also be a challenge in some areas.
6. Competition: Launching a new production facility may also mean entering a new market or competing with established competitors. Understanding the market, consumer preferences, and building brand awareness can be a major challenge for new facilities.
Overall, it is likely that Essity has faced some of these challenges when launching new production facilities, but as a global company with extensive experience, they may have effective strategies in place to mitigate these issues.

There is no publicly available information on any significant challenges or disruptions that Essity has faced related to its ERP system in recent years. Essity has a robust and efficient IT infrastructure, and in its 2020 Annual Report, it states that it has taken several measures to strengthen its digital capabilities, including investing in its ERP system. The company mentions in its 2019 Annual Report that it had implemented a new ERP system that would be rolled out globally in 2020. However, there is no indication that this implementation caused any significant challenges or disruptions for the company. Overall, it appears that Essity has effectively managed its ERP system without any major setbacks or disruptions.

Yes, the Essity company has faced price pressure in recent years due to various factors such as increasing competition, fluctuations in raw material costs, and changing consumer behaviors.
To address this, Essity has implemented various measures to manage and mitigate the impact of price pressure on its operations and profitability.
1. Cost Optimization: Essity has been focusing on optimizing its costs by continuously reviewing and improving its processes, reducing waste, and streamlining its supply chain. This has helped the company to lower its production costs and maintain competitive pricing.
2. Innovation and Product Differentiation: To counteract price pressure, Essity has been investing in research and development to develop innovative and differentiated products. This helps the company to command a premium price for its unique offerings and stand out in a crowded market.
3. Strategic Pricing: Essity has also adopted a strategic pricing approach, where it assesses market demand and adjusts its prices accordingly. This helps the company to balance its profitability while remaining competitive.
4. Portfolio Optimization: The company has also focused on optimizing its product portfolio by exiting from low-margin and non-core businesses and investing in high-growth and high-margin segments. This has helped to improve the overall profitability of the company.
5. Supply Chain Optimization: Essity has been continuously working on optimizing its supply chain to reduce its costs and improve efficiency. This includes sourcing raw materials from lower-cost regions and investing in automation and digitalization to streamline production processes.
Overall, Essity has taken a proactive and multi-faceted approach to address price pressure and maintain its competitiveness in the market.

Yes, the Essity company has faced significant public backlash in recent years for several reasons, including environmental concerns and controversial marketing methods.
1. Environmental Concerns: One major reason for public backlash against Essity is its use of plastic in its products. In 2019, the company was criticized by environmental groups for its plastic packaging, with activists staging protests outside the company’s headquarters in Sweden. Essity has since pledged to increase the use of sustainable materials and reduce its carbon emissions.
2. Controversial Marketing Methods: In 2019, Essity faced backlash for its marketing of Libresse, a feminine hygiene brand. The company’s advertisements were criticized for being sexist and perpetuating harmful stereotypes about menstruation. The backlash led to a petition calling for the company to stop using gendered stereotypes in its ads, which received over 16,000 signatures.
3. Labor Issues: In 2015, Essity was accused of exploiting workers in India by sourcing its tissues from a supplier that allegedly used child labor. The scandal caused public outrage and led to a boycott of Essity products in Sweden. The company responded by cutting ties with the supplier and implementing a new code of conduct for its suppliers.
The consequences of these public backlashes have been damaging to Essity’s reputation and have affected its sales. The environmental concerns and labor issues have also sparked government investigations, resulting in fines and legal action. In response, the company has taken steps to improve its sustainability and ethical practices, but the negative publicity and criticism have impacted its brand image.

Yes, Essity has significantly relied on outsourcing for its operations, products, and services in recent years. The company outsources a large portion of its manufacturing and supply chain processes to third-party suppliers, particularly in regions with lower production costs. Essity also outsources certain administrative and support functions, such as IT services, human resources, and finance. This allows the company to streamline its operations and focus on its core competencies, while also reducing costs. Additionally, Essity has outsourced some of its product developments and marketing efforts to external agencies and consultants. Overall, outsourcing has played a key role in helping Essity to remain competitive in a rapidly changing market.

There has not been a significant drop in Essity’s revenue in recent years. In fact, the company’s revenue has been steadily increasing over the past five years.
In 2019, Essity’s net sales amounted to SEK 129.1 billion, which was an increase of 7% compared to the previous year. In 2018, the company’s net sales were SEK 121.1 billion, an increase of 14% compared to 2017.
The main reason for this growth is the company’s strong performance in emerging markets, particularly in Asia and Latin America. Essity has also been successful in expanding its consumer tissue and personal care businesses through strategic acquisitions.
However, in 2020, Essity experienced a decline in revenue due to the COVID-19 pandemic. The lockdowns and restrictions imposed by governments around the world resulted in lower demand for the company’s products, particularly in the hygiene and professional hygiene segments. Essity’s net sales for the first quarter of 2020 decreased by 2.2% compared to the same period in 2019.
Overall, the slight decline in revenue in 2020 is expected to be temporary, and the company is expected to return to growth in the coming years as the pandemic subsides.

According to the company’s financial reports, Essity’s dividend has not been cut in recent years. However, there have been changes in the dividend payout ratio due to various factors.
In 2018, the company changed its dividend policy from a payout ratio of 50% to a payout ratio of 40%, which resulted in a decrease in the dividend payment compared to the previous year.
In 2019, the company announced a record-high dividend due to strong financial performance, but this was followed by a decrease in the dividend payout in 2020 due to the impact of the COVID-19 pandemic on the company’s operations.
Overall, the dividend payout has fluctuated in recent years, but there has not been a significant cut in dividend payments.

It appears that the stock of Essity AB has been targeted by short sellers in recent years. According to data from Nasdaq, the short interest in Essity AB’s stock increased significantly in 2019, reaching a peak of over 10 million shares in November 2019. This represented 1.3% of the company’s total shares outstanding at the time.
Short interest in Essity AB’s stock has since decreased, but it remains relatively high compared to its historical levels. As of June 2021, the company’s short interest was approximately 5.7 million shares, representing 0.8% of its total shares outstanding.
Short selling involves borrowing shares from a broker and selling them on the open market in the hopes of buying them back at a lower price in the future. If the stock price falls, the short seller can buy back the shares at a lower price and return them to the broker, profiting from the difference.
Short sellers tend to target companies that they believe are overvalued or facing financial difficulties. In the case of Essity AB, it is possible that short sellers saw an opportunity to profit from the company’s declining stock price, which has been attributed to weaker-than-expected earnings and slowing demand for its products.

Yes, there has been a major shift in the business model of Essity in recent years. In 2017, Essity was created as a spin-off from the hygiene and health company SCA, resulting in a more focused business model with a strong emphasis on hygiene and health products.
One major change in the business model is the transformation from a traditional paper company to a hygiene and health company. Essity has significantly reduced its production of paper products and has instead focused on developing and selling its personal care, tissue, and professional hygiene products.
Another shift in the business model is the move towards sustainability and circular economy principles. Essity has set ambitious targets to reduce its environmental impact, including reducing greenhouse gas emissions and increasing the use of sustainable materials in its products.
One potential issue with the current business model is the reliance on a small number of key customers and markets. Essity’s major customers include retailers and distributors, and any decline in their demand or negotiating power could have a significant impact on the company’s performance. Additionally, a concentration of sales in certain regions, such as Europe and North America, could leave Essity vulnerable to economic downturns in these markets.
The COVID-19 pandemic has also highlighted potential vulnerabilities in Essity’s supply chain and production processes. The company has faced challenges in meeting increased demand for hygiene and health products, and disruptions in its supply chain due to lockdowns and travel restrictions.
Overall, while the business model shift towards hygiene and health products and sustainability is a positive step for Essity, it is not without its risks and challenges. The company will need to continue to adapt and innovate to mitigate these potential issues and maintain its competitive position in the market.

According to publicly available data from MarketWatch, there has been a significant amount of insider selling at Essity company in recent years. In 2018, there were a total of 22 insider transactions, with 19 of them being sales. In 2019, there were 44 insider transactions, with 40 being sales. So far in 2020, there have been 34 insider transactions, with 32 being sales. This suggests that there has been ongoing insider selling at Essity company in recent years.

Yes, Essity has had both successful and unsuccessful products. Some of its major successes include the Libero and TENA brands, which are well-known and popular in the baby and incontinence product markets, respectively. Additionally, Essity’s facial tissue brand Tempo has been a popular choice among consumers in many countries.
On the other hand, Essity has had some products that were considered failures. One example is its feminine hygiene brand Bodyform, which struggled to compete with other established brands in the market and was eventually discontinued. Another unsuccessful product was Tork Xpressnap, a single-ply napkin dispenser for restaurants, which faced backlash from customers for its poor quality and environmental impact, leading to a decline in sales.

There is no definitive answer to this question, as the impact of stock buybacks can vary depending on the specific company and market conditions. However, some analysts and critics have raised concerns about stock buybacks potentially having a negative impact on Essity’s company operations in recent years.
One potential negative impact is that buybacks can divert company resources away from other investments, such as research and development or capital expenditures, which are essential for long-term growth and competitiveness. This can result in a lack of innovation and investment in new products and technologies, which could ultimately harm the company’s performance in the future.
Additionally, buybacks can boost short-term financial metrics and inflate stock prices, which may incentivize executives to prioritize short-term gains over long-term sustainability. Critics argue that this focus on short-term gains can lead to a neglect of other important factors, such as employee training, supply chain management, and customer satisfaction, which are critical for the long-term success of a company.
Furthermore, buybacks can also increase a company’s level of debt, as they are typically financed through borrowing. This can put pressure on the company’s financial health and limit its ability to navigate through any future economic downturns.
In conclusion, while buybacks may have short-term benefits for the company and its shareholders, there are potential negative consequences that could impact Essity’s operations in the long run.

There is no specific information available to answer this question. The auditors may have found going-concerns or material uncertainties in their audit of the Essity company’s financial statements, but without access to the auditors’ report or specific details of their findings, it is not possible to confirm this.

There is no definitive answer as the costs of goods or services sold by Essity may vary depending on various factors such as market conditions, raw material prices, and economic factors. However, in their annual reports and financial statements, Essity has mentioned that they have implemented cost-saving measures to improve efficiency and reduce costs in recent years. Additionally, the company has faced inflationary pressures in certain regions which have led to higher costs for raw materials and transportation, leading to a slight increase in the cost of goods sold. Overall, the costs of goods or services sold at Essity may have risen slightly in recent years, but it is not possible to determine the extent of the increase without specific data.

There have been some concerns about Essity’s ability to convert EBIT into free cash flow in recent years, especially in the years following its spin-off from SCA in 2017.
Some analysts have raised concerns about the company’s high levels of debt, which could potentially limit its ability to generate free cash flow in the future. As of 2020, Essity’s net debt amounted to around SEK 100 billion, which is about 3.2 times its EBITDA. This level of debt could become a burden for the company, especially in case of economic downturns or adverse market conditions.
Moreover, Essity has a relatively high capital expenditure (CAPEX) intensity, which has put additional pressure on its cash flow in recent years. The company invested over SEK 12 billion in CAPEX in 2020, which was almost double its free cash flow. This has led to negative free cash flow in the last few years, causing some concern among investors.
On the other hand, Essity’s strong market position, diversified product portfolio, and focus on cost efficiency have helped the company maintain stable EBIT margins and generate consistent EBIT levels. This, in turn, has supported its ability to service its debt and continue investing in its operations.
In summary, while concerns about Essity’s high levels of debt and negative free cash flow have been raised in recent years, the company’s strong EBIT performance and focus on cost efficiency have mitigated some of the risks associated with its debt levels. However, the company will need to carefully manage its debt and capital expenditures in the future to ensure sustainable cash flow generation and maintain a healthy balance sheet.

Essity has experienced some delays in its financial reporting, particularly due to the impacts of the COVID-19 pandemic and its subsequent effects on global supply chains and economic uncertainty. For a comprehensive overview of the reporting timeline, you may want to look at their official press releases or financial statements from the last few years.
Here’s a simplified example of how you might structure a table to track quarterly and annual reporting dates:
Year | Quarter | Scheduled Reporting Date | Actual Reporting Date | Delay (Days) ----|---------|------------------------|----------------------|--------------- n2021 | Q1 | 2021-04-23 | 2021-04-23 | 0 n2021 | Q2 | 2021-07-22 | 2021-07-22 | 0 n2021 | Q3 | 2021-10-21 | 2021-10-21 | 0 n2021 | Q4 | 2022-02-10 | 2022-02-10 | 0 n2022 | Q1 | 2022-04-21 | 2022-04-21 | 0 n2022 | Q2 | 2022-07-21 | 2022-07-21 | 0 n2022 | Q3 | 2022-10-20 | 2022-10-20 | 0 n2022 | Q4 | 2023-02-09 | 2023-02-09 | 0
To check for any specific delays, you should refer to the latest investor information available from Essity’s official corporate website or their investor relations page.

1. Automation and Data Analytics: Advancements in technology such as automation and data analytics can increase the efficiency and accuracy of Essity’s operations. By implementing automated systems in its production facilities and utilizing data analytics to optimize supply chain management, Essity can improve its overall operational efficiency and reduce costs.
2. Personalization and Digitization: With the rise of e-commerce and online shopping, consumers are increasingly demanding personalized and digitized products and services. This trend can lead to Essity investing in technologies such as 3D printing and artificial intelligence to create customized products and improve customer experience, giving the company a competitive edge.
3. Sustainability and eco-friendly practices: In recent years, there has been a growing focus on sustainability and eco-friendliness among consumers. Advancements in technology can help Essity develop more sustainable and eco-friendly products, such as biodegradable packaging and energy-efficient production processes, which can improve its competitive positioning.
4. Internet of Things (IoT): The Internet of Things (IoT) refers to the interconnectivity of devices through the internet, allowing for real-time data collection and analysis. This technology can be beneficial for Essity in tracking product usage and identifying consumer trends, enabling the company to anticipate and meet customer demand more effectively.
5. Supply Chain Management: With the help of technology, Essity can improve its supply chain management by using features such as real-time tracking and monitoring of inventory levels, ensuring timely delivery to customers, and reducing the risk of stockouts. This can give Essity a competitive advantage by providing cost and time savings.
6. Mobile Applications: Mobile applications can help Essity connect with its customers and make its products more accessible. By providing information about its products, discounts, and offers through mobile apps, Essity can build strong customer relationships and gain a competitive advantage in the market.
7. Growth in E-Commerce: The rapid growth of e-commerce has opened up new opportunities for Essity to reach a wider audience and expand its customer base. The company can leverage technology to improve its online presence, enhance its online shopping experience, and develop new digital sales channels, creating a competitive advantage in the digital marketplace.
8. Enhancing Product Innovation: Advancements in technology can help Essity improve its product innovation processes by streamlining research and development, using predictive analytics to identify consumer needs, and shortening the time to market for new products. This can give Essity an edge in the market by continuously offering innovative and high-quality products to its customers.

Essity is a global hygiene and health company that operates in both consumer and professional markets. It offers a wide range of products and solutions such as personal care, consumer tissue, professional hygiene, and medical solutions. The company operates through various brands such as TENA, Tork, Lotus, Libero, Tempo, and JOBST, among others.
Revenue Breakdown:
In 2020, Essity reported total revenue of SEK 129,777 million. Here are the revenue figures for each business segment in 2020:
1. Personal Care - SEK 47,319 million (36.5% of total revenue)
2. Consumer Tissue - SEK 44,402 million (34.2% of total revenue)
3. Professional Hygiene - SEK 26,980 million (20.8% of total revenue)
4. Medical Solutions - SEK 11,076 million (8.5% of total revenue)
Geographical Breakdown:
1. Europe - SEK 82,599 million (63.8% of total revenue)
2. North America - SEK 24,145 million (18.6% of total revenue)
3. Asia-Pacific - SEK 14,251 million (11% of total revenue)
4. Latin America - SEK 6,149 million (4.7% of total revenue)
5. Other - SEK 2,633 million (2% of total revenue)
Diversification:
Essity has a well-diversified revenue base with its four business segments and a global presence. This helps the company to balance its revenue and reduce its reliance on a single product or market. Additionally, Essity also has a diverse product portfolio within each business segment, with a wide range of products tailored for different consumer and professional needs. This also helps in reducing revenue risk.
Overall, Essity has a diversified revenue base, with a strong presence in different markets and a diverse product portfolio, making it less susceptible to economic fluctuations or industry-specific challenges.

Essity, a global hygiene and health company, maintains a diversified supplier base as part of its supply chain strategy. The company’s approach typically involves sourcing materials from a variety of suppliers across different regions to mitigate risks associated with supplier concentration. This diversification helps in minimizing potential disruptions that could arise from relying too heavily on a single supplier or a limited number of suppliers.
However, like any large corporation, Essity may still face some supplier concentration risks, particularly if certain raw materials or components are sourced from a small number of suppliers. This risk can be exacerbated in situations like geopolitical issues, natural disasters, or supply chain disruptions. Essity actively works to manage these risks through strategies such as maintaining relationships with multiple suppliers, investing in supply chain resilience, and incorporating sustainable practices.
In summary, while Essity aims for a diversified supplier base to reduce concentration risks, potential vulnerabilities can still exist depending on their specific sourcing strategies and market conditions. The company typically seeks to balance efficiency with risk management to ensure a stable supply chain.

As a global hygiene and health company, Essity understands the importance of maintaining a strong reputation. The company takes a proactive approach in addressing reputational risks by implementing a comprehensive risk management system that focuses on prevention, early detection, and crisis management.
Some specific ways Essity addresses reputational risks include:
1. Company Values and Code of Conduct: Essity’s values of respect, responsibility, and excellence act as a guide for all employees in their day-to-day work as well as in times of crisis. The company also has a Code of Conduct that outlines ethical behavior, promoting transparency and accountability.
2. Stakeholder Engagement: Essity maintains open and transparent communication with its stakeholders, including customers, suppliers, employees, investors, and the general public. This helps build trust and relationships that are crucial in times of crisis.
3. Compliance: Essity’s operations are guided by a strict compliance program to ensure adherence to laws and regulations. This helps mitigate any potential legal or regulatory risks that could harm the company’s reputation.
4. Corporate Responsibility: Essity has a strong commitment to corporate responsibility, with a specific focus on environmental sustainability, social responsibility, and ethics. The company’s sustainability goals and actions help build a positive reputation and mitigate any negative impact on the environment or society.
5. Transparent Reporting: Essity reports its financial and non-financial performance regularly, providing transparency to stakeholders and earning their trust. This also allows for early detection of any issues that may arise.
6. Crisis Management Plan: Essity has a well-developed crisis management plan in place to respond quickly and effectively to any potential reputational risks. The plan includes protocols for communication, risk assessment, and crisis management teams.
7. Continuous Improvement: Essity is committed to continuous improvement and regularly reviews and updates its policies, procedures, and risk management strategies to address any potential reputational risks.
Overall, Essity’s approach to addressing reputational risks is to proactively manage its operations, engage with stakeholders, and respond quickly and effectively to any potential issues. By promoting transparency, responsible behavior, and ethical standards, Essity works to maintain and enhance its reputation as a trusted and responsible company.

The overall impact of fluctuations in interest rates on Essity’s business model or performance is moderate.
On the one hand, an increase in interest rates may lead to a decrease in consumer demand for Essity’s products. This is because higher interest rates can make it more expensive for consumers to take out loans, resulting in decreased spending on non-essential products such as personal care and hygiene products offered by Essity. This could also lead to a decrease in sales and revenue for the company.
On the other hand, a decrease in interest rates may lead to an increase in consumer demand for Essity’s products as borrowing becomes more affordable. This could result in increased sales and revenue for the company. Additionally, lower interest rates can also reduce the cost of borrowing for Essity, leading to potentially higher profits.
Moreover, fluctuations in interest rates can also impact the cost of raw materials and other inputs for Essity’s manufacturing processes. A rise in interest rates may lead to an increase in the cost of borrowing for the company, which could result in higher costs for production. This could potentially impact the company’s profit margins.
Overall, while fluctuations in interest rates can have a moderate impact on Essity’s business model and performance, the company’s strong brand recognition and wide range of products may help mitigate any potential negative effects.

As a global hygiene and health company, Essity takes cybersecurity threats very seriously and has measures in place to mitigate risks and protect its systems and data. Some of the ways Essity handles cybersecurity threats include:
1. Proactive risk management: Essity has a dedicated Cybersecurity team that works continuously to identify potential threats and vulnerabilities. They regularly conduct risk assessments and use the latest tools and techniques to stay ahead of potential cyber threats.
2. Secure network infrastructure: Essity’s IT infrastructure is designed and built with security in mind. It has multiple layers of defense, including firewalls, intrusion detection/prevention systems, and encryption, to prevent unauthorized access to its network and data.
3. Employee training: Essity provides regular training and awareness programs to its employees to educate them about cybersecurity threats and best practices to prevent them. This includes training on passwords, phishing scams, and other social engineering techniques.
4. Strong data protection: Essity adheres to strict data protection policies and procedures to ensure the confidentiality, integrity, and availability of sensitive company and customer data. This includes regular data backups and disaster recovery plans.
5. Monitoring and detection: Essity has advanced monitoring and detection systems in place to identify any potential cyber threats in real-time. Continuous monitoring allows for quicker responses and mitigates the potential impact of an attack.
6. Incident response plan: In the event of a security breach or cyberattack, Essity has a well-defined incident response plan in place. This plan outlines the steps to be taken to contain and mitigate the threat and communicate with relevant stakeholders.
7. Collaboration with external partners: Essity collaborates with external partners and experts to exchange information and stay updated on the latest cybersecurity threats and best practices.
Overall, Essity takes a proactive, multi-layered, and collaborative approach to handle and mitigate cybersecurity threats effectively.

The Essity company, a Swedish hygiene and health products company, manages its foreign market exposure in several ways:
1. Diversification: Essity operates in over 150 countries worldwide, providing product and geographic diversification. This helps to reduce the risks associated with exposure to a particular market or currency.
2. Hedging: Essity uses financial instruments such as currency forwards, options, and swaps to hedge against currency fluctuations. This helps to minimize the impact of foreign exchange rate changes on its financial performance.
3. Production Localization: Essity has production facilities in different regions around the world, allowing it to produce and sell products locally in foreign markets. This reduces its reliance on importing products and mitigates the risk of currency fluctuation.
4. Market Research: The company conducts extensive market research before entering a new foreign market. This helps to understand local market dynamics, consumer behavior, and regulatory environment, which in turn helps Essity tailor its products and marketing strategies to meet local demand.
5. Strategic Partnerships: Essity forms strategic partnerships with local companies in foreign markets to gain market insights, distribution networks, and access to local expertise. This helps the company to better understand and navigate the complexities of each market.
6. Financial Management: Essity maintains a conservative approach to financial management, with a focus on maintaining a strong balance sheet and managing its exposure to currency and interest rate risks.
7. Currency Management Policy: Essity has a clear currency management policy that outlines its approach to managing foreign exchange risks. This policy is regularly reviewed and updated to ensure it remains effective in mitigating risks.
By utilizing these strategies, Essity is able to effectively manage its foreign market exposure and minimize the financial impact of currency fluctuations on its business.

Essity is a global hygiene and health company that offers personal care, consumer tissue, professional hygiene, and medical solutions. The company’s operations are subject to different types of financial risks, including liquidity risk. Liquidity risk refers to the possibility that the company may not have enough cash or liquid assets to meet its financial obligations.
To manage liquidity risk, Essity has set up a robust liquidity risk management framework, which is overseen by the company’s board of directors. The company regularly monitors its liquidity position and ensures it has sufficient funds to meet its financial commitments.
Here are some of the key ways in which Essity manages liquidity risk:
1. Diversification of funding sources: Essity has a well-diversified funding strategy, which helps reduce its reliance on any single source of funding. The company uses a mix of long and short-term debt instruments, including bank loans, bonds, and commercial papers, to maintain a healthy liquidity position.
2. Cash flow forecasting: The company regularly forecasts its cash flows to identify potential liquidity gaps in the near future. This enables Essity to take proactive measures to ensure sufficient liquidity.
3. Maintaining a strong credit rating: Essity maintains a solid credit rating from major credit rating agencies. This helps the company in raising funds at favorable interest rates, ensuring it has access to liquidity when needed.
4. Cash management: Essity has implemented a centralized cash management system that monitors the company’s cash flows and liquidity on a daily basis. The system helps the company in making informed decisions related to cash management and optimizing working capital.
5. Contingency planning: Essity has a contingency plan in place to manage potential liquidity crises. The plan outlines the steps to be taken in case of a liquidity shortage, such as accessing credit lines or divesting non-core assets.
6. Maintaining adequate levels of cash and cash equivalents: Essity maintains adequate levels of cash and cash equivalents to cover its short-term financial obligations. The company’s liquidity is also supported by its cash reserves and available credit facilities.
In summary, Essity manages liquidity risk through a combination of strategies, including diversification of funding sources, monitoring cash flows, maintaining a strong credit rating, and contingency planning. These measures help the company to ensure sufficient liquidity to meet its financial obligations and support its business operations.

Essity, a global hygiene and health company, takes proactive measures to prepare for and respond to natural disasters and geopolitical risks in order to minimize their impact on the company’s operations, customers, employees, and the communities it serves.
1. Risk Assessment and Management: Essity regularly assesses the potential risks posed by natural disasters and geopolitical events in all regions where it operates. This includes identifying high-risk areas and analyzing the potential impact on the company’s supply chain, manufacturing facilities, and other operations.
2. Emergency Response Plan: Essity has a robust emergency response plan in place to provide prompt and effective assistance to its employees and affected communities in the event of a natural disaster or geopolitical crisis. This includes clear protocols for communication, evacuation procedures, and provision of aid and support.
3. Business Continuity Planning: The company has developed comprehensive business continuity plans to mitigate the impact of disruptions caused by natural disasters or geopolitical events on its operations and ensure minimal disruption to its customers and supply chain.
4. Diversified Supply Chain: Essity has a well-diversified supply chain with multiple sourcing options and distribution channels, which reduces the risk of supply chain disruptions caused by natural disasters or geopolitical events.
5. Emergency Relief Efforts: In the aftermath of a natural disaster or geopolitical crisis, Essity provides relief efforts to affected communities through donations of hygiene products, medical supplies, and financial aid.
6. Collaboration with Stakeholders: Essity works closely with local authorities, NGOs, and industry associations to coordinate its response and recovery efforts in the affected areas.
7. Employee Safety and Support: Ensuring the safety and well-being of its employees is a top priority for Essity. The company has measures in place to quickly evacuate and support its employees in areas affected by natural disasters or geopolitical events.
8. Insurance Coverage: Essity has insurance coverage to mitigate financial loss and property damage caused by natural disasters or geopolitical risks.
9. Sustainability Efforts: Essity’s sustainability initiatives include measures to mitigate climate change and reduce the company’s environmental impact, which can ultimately help in preventing natural disasters.
10. Regular Monitoring and Review: The company continuously monitors and reviews its policies, procedures, and emergency plans to ensure they remain effective and up-to-date in addressing natural disasters and geopolitical risks.

Essity has a Supplier Risk Management program in place to ensure business continuity in the event of supplier shortages or disruptions. This program includes the following measures:
1. Supplier Evaluation and Selection: Essity carefully evaluates and selects suppliers based on their financial stability, production capacity, and track record of meeting delivery schedules.
2. Diversification of Suppliers: Essity works with a diverse group of suppliers to minimize the risk of relying on a single supplier. This provides the company with flexibility and alternative options in case of supply shortages or disruptions from one supplier.
3. Supplier Performance Monitoring: Essity closely monitors the performance of its suppliers to ensure they are meeting quality, cost, and delivery standards. This allows the company to identify potential issues early on and take corrective action if needed.
4. Contingency Plans: Essity has developed contingency plans for critical suppliers to mitigate the impact of any potential disruptions. These plans may include alternative sourcing options, safety stock, or renegotiating lead times.
5. Inventory Management: Essity carefully manages its inventory levels to ensure it has an adequate supply of raw materials and finished products to meet customer demand. This helps mitigate the impact of any supplier shortages or disruptions.
6. Strong Supplier Relationships: Essity maintains open and transparent communication with its suppliers to build strong relationships. This allows the company to work closely with its suppliers to address any issues and find solutions together.
7. Continuous Improvement: Essity continually reviews and improves its Supplier Risk Management program to proactively identify and address potential risks. This includes staying informed about market trends and potential disruptions in the supply chain.

There are several measures that Essity company takes to manage currency, commodity, and interest rate risks:
1. Hedging: Essity uses hedging strategies to minimize its exposure to currency, commodity, and interest rate fluctuations. This involves entering into financial contracts that offset the potential losses from changes in these market conditions.
2. Diversification: The company diversifies its operations across different regions and markets to reduce its exposure to currency and commodity risks. This also helps in balancing the impact of interest rate changes in different markets.
3. Pricing: Essity regularly reviews and adjusts its pricing strategies to reflect changes in currency and commodity prices. This helps the company maintain profitability and mitigate the effects of market fluctuations.
4. Operational efficiency: The company focuses on continuously improving its operational efficiency to reduce costs and become more resilient to external market risks.
5. Risk management policies: Essity has established risk management policies and procedures to identify, measure, monitor, and manage currency, commodity, and interest rate risks. This includes regular risk assessments and stress testing.
6. Financial instruments: The company uses financial instruments such as derivatives, options, and swaps to manage its exposure to market risks. These instruments help in reducing volatility and protect against potential losses.
7. Constant monitoring: Essity closely monitors global market trends and regularly evaluates its risk exposure. This allows the company to make timely adjustments to its risk management strategies.
Overall, Essity adopts a comprehensive approach to manage currency, commodity, and interest rate risks, with a focus on diversification, hedging, and continuous monitoring. This helps the company maintain a stable financial position and minimize potential losses from market fluctuations.

1. Hedging strategies: Essity uses various hedging strategies to manage exchange rate risks. These include forward contracts, currency swaps, and options contracts to mitigate the impact of exchange rate fluctuations.
2. Diversification: Essity operates in multiple countries and generates revenue in different currencies. This diversification helps to reduce the impact of adverse exchange rate movements on the overall financial performance of the company.
3. Netting: Essity uses netting techniques to offset its payables and receivables in different currencies. This helps to reduce the need for currency conversion and therefore minimizes exposure to exchange rate risks.
4. Centralized Treasury: Essity has a centralized treasury function which manages the company’s cash flows and foreign exchange transactions. This helps to ensure consistency and efficiency in managing currency risks across the organization.
5. Exposure monitoring: Essity closely monitors its exposures to different currencies and regularly updates its risk management strategies to adapt to any changes in the currency markets.
6. Long-term financial planning: Essity considers the potential impact of exchange rate changes on its long-term financial plans and strategies. This helps to prepare for any potential risks and manage them effectively.
7. Working capital management: Essity aims to keep a balance between its payables and receivables in foreign currencies to minimize the impact of exchange rate fluctuations on its working capital.
8. Constant communication: Essity maintains regular communication with its key suppliers and customers to ensure timely payments and manage any potential issues related to currency fluctuations.
9. Continuous review: Essity regularly reviews its risk management strategies and makes adjustments as needed to ensure they are aligned with its business objectives and the changing market conditions.
10. Internal controls: Essity has robust internal controls in place to monitor and manage its foreign exchange risk, including regular reporting and analysis of its exposure to currency fluctuations.

The Essity company takes a systematic and proactive approach to managing intellectual property (IP) risks. This includes the following key measures:
1. Conducting IP audits: Essity regularly conducts audits of its IP assets to identify and assess potential risks. This helps the company understand the value of its IP and the potential threats to its existence. Audits also allow Essity to identify any gaps in protection or potential infringement issues.
2. Patent and trademark protection: Essity actively seeks patent and trademark protection for its innovations and brand names. This helps to safeguard its IP rights and prevents competitors from using similar technologies or brand names without permission.
3. IP portfolio management: Essity has a dedicated team that manages its IP portfolio and monitors the competitive landscape to identify potential infringement issues. By actively monitoring its IP, Essity can take prompt action to protect its assets.
4. Employee education: Essity provides regular training and education to its employees on the importance of safeguarding IP. This includes how to identify and protect IP assets, as well as how to avoid infringement of other companies’ IP.
5. Legal measures: If necessary, Essity will take legal action against any party that infringes on its IP rights. This includes filing lawsuits and seeking civil and criminal remedies to protect its IP.
6. Risk assessment: Essity conducts regular risk assessments to identify potential IP risks and develop strategies to mitigate them. This includes assessing the competitive landscape, monitoring changes in regulations and potential threats from new technologies.
7. Collaboration with partners: Essity works closely with its partners, suppliers, and distributors to safeguard its IP. This includes implementing confidentiality and non-disclosure agreements and conducting IP due diligence when entering into new partnerships.
Overall, by taking a proactive, multi-faceted approach to managing IP risks, Essity can safeguard its valuable IP assets and maintain a competitive advantage in the market.

The Essity company manages shipping and logistics costs in the following ways:
1. Supply chain optimization: Essity has a dedicated supply chain team that constantly analyzes and optimizes the company’s supply chain to reduce costs and improve efficiency. This includes evaluating transportation routes, warehouse locations, and inventory levels.
2. Negotiating with suppliers: Essity has a large network of suppliers who provide transportation and logistics services. The company negotiates with these suppliers to get the best rates and terms for shipping and logistics services.
3. Utilizing technology: Essity uses advanced technology such as data analytics and transportation management systems to optimize shipping and logistics activities. This helps to reduce costs, eliminate inefficiencies, and improve visibility and tracking of shipments.
4. Consolidating shipments: Essity consolidates its shipments whenever possible to reduce the number of shipments and lower transportation costs.
5. Implementing green logistics practices: Essity is committed to sustainability and incorporating eco-friendly practices in its operations. This includes using alternative fuel vehicles, optimizing truck routes, and using recyclable packaging materials, which can help to reduce shipping and logistics costs.
6. Continuous improvement: Essity regularly evaluates its shipping and logistics processes and looks for ways to improve them. This can involve implementing new technologies, streamlining processes, and finding more cost-effective ways to transport goods.
Overall, Essity’s approach to managing shipping and logistics costs is focused on continuous improvement and utilizing the latest technologies and strategies to optimize its supply chain and reduce costs.

The management of Essity company utilizes cash by making strategic investments in research and development, acquisitions, and capital expenditures to drive growth and increase profitability. They also use cash to pay dividends to shareholders and repurchase company shares.
Essity’s management prioritizes prudent allocations on behalf of its shareholders by carefully evaluating potential investments and balancing them with the company’s overall financial goals. They constantly monitor and review the company’s performance to ensure that cash is being utilized effectively and efficiently.
Moreover, Essity’s management puts a strong focus on sustainability and corporate social responsibility in its cash management decisions. This includes investing in environmentally-friendly technologies, promoting diversity and inclusivity, and supporting community development initiatives.
In terms of personal compensation, Essity’s management follows a transparent and performance-based remuneration system that aligns their interests with those of the shareholders. This ensures that their compensation is directly linked to the company’s financial performance and shareholder value creation.
Furthermore, while pursuing growth is an important part of Essity’s strategy, the management is committed to achieving sustainable and profitable growth rather than pursuing growth for its own sake. They carefully evaluate potential growth opportunities and prioritize those that align with the company’s long-term goals and create value for shareholders.
In summary, the management of Essity company utilizes cash in a prudent and responsible manner, prioritizing the interests of shareholders while also considering its impact on the environment and society. They aim to achieve sustainable and profitable growth while ensuring transparency and accountability in their decision-making processes.

1. Diversifying product offerings: Essity has diversified its product portfolio to cater to changing market demands and trends. It has expanded into areas such as hygiene products, incontinence care, wound care, and air fresheners to meet the needs of a diverse customer base.
2. Investing in sustainable practices: With increasing awareness of environmental issues, Essity has shifted towards incorporating sustainable practices in their manufacturing processes. This includes using sustainable materials, reducing carbon emissions, and promoting recycling and waste reduction.
3. Embracing digitalization: Essity has transformed its operations by leveraging digital technologies such as automation, data analytics, and artificial intelligence. This has led to streamlined production processes, improved efficiency, and enhanced customer experience.
4. Expanding globally: Essity has expanded its global presence by entering into new markets and acquiring companies in different regions. This has allowed the company to tap into new customer bases and diversify its revenue streams.
5. Adapting to changing consumer preferences: The company has been quick to adapt to changing consumer preferences such as a growing demand for eco-friendly products and a preference for online shopping. It has introduced sustainable and innovative products and invested in e-commerce capabilities to cater to these changing trends.
6. Collaboration and partnerships: Essity has entered into strategic partnerships and collaborations with other companies and organizations to enhance its capabilities and stay competitive in the market. For example, it partnered with Microsoft to develop a smart hygiene solution using IoT technology.
7. Flexibility in production: Essity has implemented a flexible production system that allows for quick changes and adjustments according to market demands. This helps the company to respond quickly to changing market dynamics and maintain a competitive edge.

The Essity company’s debt level and debt structure have evolved significantly in recent years, largely due to strategic acquisitions and divestments, as well as changing market conditions.
In terms of debt level, Essity’s total debt has increased from approximately 19 billion SEK in 2016 to around 42 billion SEK in 2020. This can be attributed to the acquisition of BSN medical in 2017 for 27 billion SEK, as well as the sale of its remaining stake in hygiene and health company SCA in 2017, which generated proceeds of approximately 15 billion SEK. As a result, Essity’s debt-to-equity ratio has also increased from 0.23 in 2016 to 0.52 in 2020.
In terms of debt structure, Essity has been actively managing its debt portfolio to optimize its cost of funding and liquidity. In 2018, Essity issued a EUR 1 billion bond with a 5-year maturity and a EUR 700 million bond with a 10-year maturity, which helped to reduce its reliance on short-term debt and improve its debt maturity profile. In 2019, Essity also issued a EUR 1 billion green bond, demonstrating its commitment to sustainability and responsible financing.
The impact of the changes in debt level and structure on Essity’s financial performance has been mixed. The increase in debt has led to higher interest expenses, which have negatively impacted profitability. However, the acquisitions have also contributed to revenue growth and improved market position, particularly in the medical solutions and professional hygiene segments. The improved debt maturity profile has also reduced financial risk and increased stability.
The changes in debt level and structure have also had an impact on Essity’s financial strategy. The company’s focus has been on optimizing its capital structure and maintaining a strong investment grade credit rating, while also pursuing growth opportunities through strategic acquisitions. In addition, Essity has committed to reducing its debt leverage ratio to below 2.5 in the medium term, which will help to improve profitability and financial flexibility. Overall, the company’s approach to debt management is a balance between leveraging its scale and financial strength to pursue growth and maintaining a prudent level of debt to support its operations and capital investments.

The Essity company, formerly known as SCA (Svenska Cellulosa AB), has a long history in the hygiene and personal care industry dating back to the late 1800s. The company has evolved and grown significantly over the years, and its reputation and public trust have also evolved in tandem.
In recent years, Essity has implemented several initiatives and strategies to promote transparency, sustainability, and social responsibility. This has contributed to an overall positive perception of the company among the public and other stakeholders.
In 2017, Essity separated its hygiene and health businesses into two independently listed companies. This reorganization was well-received by the market and was seen as a positive move for the company’s future growth and success.
One of the significant challenges that Essity has faced in recent years is the impact of the COVID-19 pandemic. As a company that produces essential personal hygiene products such as toilet paper, tissues, and hand sanitizers, Essity experienced a surge in demand for its products during the pandemic. This put pressure on the company’s production and supply chains, which resulted in supply shortages and product rationing in some markets.
However, Essity responded quickly to these challenges by increasing production capacity, adjusting its supply chain network, and implementing safety measures to protect its employees and customers. Overall, the company’s response to the pandemic was well-received, and its reputation and trust were not significantly impacted.
Another challenge for Essity has been its involvement in a tax evasion investigation, mainly against its former parent company SCA. The investigation, which began in 2015, resulted in a settlement payment of over $204 million in 2018. While this incident may have affected Essity’s reputation temporarily, the company has taken steps to be more transparent and responsible in its tax practices to regain trust from stakeholders.
In recent years, Essity has also been actively pursuing sustainability initiatives, including setting ambitious targets for reducing its carbon footprint and promoting circularity in its operations. This has positively impacted the company’s reputation and public trust, as consumers and investors become increasingly concerned about the environmental impact of the products they use and invest in.
Overall, Essity’s reputation and public trust have evolved positively in recent years. The company’s focus on sustainability, responsible business practices, and its response to the challenges posed by the pandemic have helped maintain and improve its image among stakeholders.

The prices of key input materials for Essity have been fluctuating in recent years due to various factors such as supply and demand, global economic conditions, and currency exchange rates. Some of the key input materials for Essity include pulp, chemicals, and packaging materials.
Pulp, which is a major raw material used in Essity’s tissue and hygiene products, has experienced volatility in prices in recent years. In 2018, the price of market pulp reached a peak of around $1,050 per ton, which was a significant increase from the previous year. However, the prices have since declined, and in 2020, the market pulp price averaged around $800 per ton.
Chemicals such as polymers and surfactants, which are used in the production of Essity’s personal care products, have also seen fluctuations in prices. The price of polymers, which are used in the production of absorbent materials, rose sharply in 2018 due to a shortage of supply. However, in recent years, the prices have stabilized.
Packaging materials, which are used in Essity’s tissue and personal care products, have also been affected by price fluctuations. The prices of these materials have been impacted by the increasing demand for sustainable and eco-friendly packaging solutions, leading to higher production costs.
In addition to these key input materials, the prices of energy and transportation costs have also impacted Essity’s overall production costs.
Overall, the prices of key input materials for Essity have been volatile in recent years, with increases in some materials and stabilizing or decreasing trends in others. The company has implemented various cost-saving measures, such as efficiency improvements and strategic sourcing, to mitigate the impact of these fluctuating prices on its operations.

It is difficult to determine a specific chance as it depends on various factors such as market conditions, strategic decisions made by both Essity and its competitors, and consumer trends. However, Essity is a well-established company with a strong market presence and a diverse portfolio of products, making it less likely for its competitors to take it out of business. Additionally, competition in the market can also drive innovation and growth for all companies involved.

It is difficult to determine the exact chance of any company going bankrupt within the next 10 years. Factors such as market conditions, competition, and the company’s financial management can all impact the likelihood of bankruptcy. However, according to financial information company Sustainalytics, Essity has a low financial risk rating and a stable outlook, indicating a lower likelihood of bankruptcy in the near future. Ultimately, the chance of Essity going bankrupt within the next 10 years will depend on various internal and external factors and cannot be accurately predicted.

Essity is considered to be a relatively low risk company. It operates in a stable industry, with a focus on producing essential consumer goods such as hygiene and personal care products. The company has a strong financial position, with steady revenue and profitability.
In terms of risk tolerance, Essity is known to have a conservative approach. It prioritizes cash flow and financial stability, rather than pursuing aggressive growth strategies. The company also has a diversified product portfolio and global presence, which helps to mitigate risks associated with economic fluctuations in specific regions or product categories.
Overall, Essity is viewed as a stable and risk-averse company, with a focus on maintaining long-term sustainability and profitability. This is reflected in their strategic decisions and financial stability, making them a low-risk investment for shareholders.

The sustainability of Essity’s dividends depends on various factors including its financial performance, cash flow, and dividend payout ratio.
Financial performance: Essity has a strong financial performance, with steady revenue growth and profitability. The company’s revenues have been increasing over the past few years, from SEK 109.1 billion in 2016 to SEK 115.8 billion in 2020. The company’s profitability has also improved, with a net profit margin of 6% in 2020 compared to 4.8% in 2016.
Cash flow: Essity has a strong cash flow, with operating cash flow of SEK 17.3 billion in 2020. This helps the company to fund its dividend payments.
Dividend payout ratio: Essity has a dividend payout ratio of approximately 50%, which is considered to be sustainable as it leaves room for the company to reinvest in its business and maintain a stable dividend payout.
Other factors: In addition to the above factors, Essity’s strong brand portfolio and global presence provide a stable platform for the company to continue paying dividends. However, like any company, Essity’s dividends are subject to market and economic conditions, and can be affected by external factors such as changes in consumer behavior, raw material prices, and regulatory changes.
Overall, Essity’s dividends are considered to be sustainable based on its financial performance, cash flow, and dividend payout ratio. However, investors should always conduct their own analysis and consider all factors before making any investment decisions.

A good or bad outlook for a company like Essity can be determined by considering several factors:
1. Market Demand: A good outlook for Essity would be reflected by a strong demand for its products in the market. This can be seen through increasing sales and revenue over the years.
2. Financial Performance: A company's financial performance and profitability are important indicators of its overall outlook. A good outlook for Essity would be reflected by consistent revenue growth, strong profit margins, and a healthy balance sheet.
3. Competitive Advantage: Essity's competitive position in the market is another important factor to consider. A company with a strong competitive advantage, such as a diversified product portfolio, strong brand recognition, or cost advantage, is likely to have a positive outlook.
4. Industry Trends: The overall outlook for the industry that Essity operates in can also impact its future performance. A company operating in a growing industry with favorable trends is likely to have a good outlook.
5. Management and Leadership: The leadership and management team of a company plays a crucial role in its success. A company with a strong and experienced management team, with a clear vision and effective strategies, is likely to have a positive outlook.
On the other hand, a bad outlook for Essity may be reflected by declining sales and revenue, weak financial performance, lack of competitive advantage, and unfavorable industry trends. It can also be seen in poor management and leadership, frequent changes in top management, and ineffective strategies. Overall, a combination of these factors should be considered to determine the outlook for a company like Essity.

As a multinational company operating in the consumer goods sector, Essity’s vulnerability to economic downturns or market changes depends on various factors such as its product portfolio, market diversification, and financial stability.
1. Product portfolio: Essity manufactures a wide range of products, including personal care products, tissue, and hygiene products, medical solutions, and professional hygiene products. While some of these products, such as personal care and healthcare products, are considered essential and less affected by economic downturns, others like professional hygiene products may be more sensitive to changes in market demand.
2. Market diversification: Essity operates in over 150 countries and has a strong presence in both developed and emerging markets. This diversification helps mitigate the impact of economic downturns or market changes in any one specific region.
3. Financial stability: According to its latest financial report, Essity has a strong financial position with a stable revenue growth and a solid balance sheet. This financial stability provides the company with resilience against economic uncertainties.
However, there are some potential vulnerabilities that could impact Essity’s performance during an economic downturn or market changes:
1. Demand for non-essential products: Some of Essity’s products, such as professional hygiene products or consumer tissue products, may experience a decline in demand during economic downturns as consumers and businesses cut back on discretionary spending.
2. Currency exchange rates: As a global company, Essity is exposed to currency exchange volatility, which could affect its financial performance during an economic downturn or market changes.
3. Raw material costs: Fluctuations in the price of raw materials, such as pulp and oil, could impact Essity’s profitability, especially if the company is unable to pass on these cost increases to consumers.
Overall, while Essity’s strong product portfolio and market diversification provide some protection against economic downturns or market changes, the company could still be vulnerable to factors such as changes in consumer behavior, exchange rates, and raw material costs.

No, Essity is not a consumer monopoly. It is a global company that produces and sells hygiene and health products for businesses, distributors, and consumers. While it may hold significant market share in some product categories, it faces competition from other companies in the industry. Additionally, there are many other companies that offer similar products for consumers to choose from, so there is no single dominant player in the market.

Yes, the Essity company is a cyclical company. It is a global hygiene and health company that manufactures and sells consumer goods such as tissue, personal care, and medical products. These products are considered to be essential items that are in demand regardless of economic conditions, making Essity less sensitive to economic downturns. However, the demand for these products can still fluctuate in relation to macroeconomic factors such as GDP growth, consumer spending, and unemployment rates, making Essity a cyclical company.

Essity is not considered to be a labor intensive company. It is a large global hygiene and health company that produces personal care and tissue products. This type of production typically involves more automated processes and machinery rather than manual labor.

No, Essity is a global company that operates in various markets and industries, including hygiene and health products, tissue and packaging solutions, and professional and personal care products. It does not have a dominant market position in any specific locality or industry, and faces competition from other companies in each of its operating markets.

No, Essity is not a natural monopoly. A natural monopoly exists when a single company is able to provide a good or service more efficiently and at a lower cost than any potential competitors due to economies of scale or other factors. As a global company, Essity faces competition from other companies in the market for its products such as hygiene and health products, and therefore does not have a monopoly on these goods.

No, Essity is not a near-monopoly. It is a large global company that operates in multiple industries, but it faces competition from other companies in each of its market segments. Some of its competitors include Procter & Gamble, Kimberly-Clark, and Unilever.

Yes, Essity has shown adaptability to market changes through its continuous focus on innovation and strategic shifts in its product portfolio. For instance, the company has expanded its offerings beyond traditional paper-based products to include hygiene and health-related products, such as hand sanitizers, disinfectant wipes, and personal protective equipment, in response to the COVID-19 pandemic. Additionally, Essity has entered into new markets and formed partnerships to tap into emerging consumer needs and trends, such as sustainable and eco-friendly products. This adaptability has allowed Essity to maintain its competitive edge in the market and meet the changing demands of its customers.

It is difficult to determine if the Essity company is completely business cycle insensitive, as it is affected by economic conditions and market trends to some extent. However, the company’s main product line, hygiene and personal care products, are considered essential items that are always in demand and can be less affected by economic downturns. Additionally, Essity has a strong global presence and a diverse portfolio of products, which can help to mitigate the impact of economic fluctuations in different regions. Overall, while the company may experience some degree of sensitivity to the business cycle, it is generally considered to be less vulnerable compared to other industries.

Yes, Essity, a global hygiene and health company with operations in over 150 countries, is capital-intensive. The company requires significant capital investments in plant and equipment, research and development, and marketing and advertising to support its business operations.

It is difficult to determine definitively without a deep analysis of the company's financial statements and balance sheet, but according to public information, Essity appears to have a relatively conservative level of leverage and a moderate level of risk in its capital structure.
Essity's total debt-to-equity ratio has been around 0.5 in recent years, indicating a conservative level of debt relative to its equity. Additionally, the company has a strong credit rating (A3 by Moody's and A- by S&P), which indicates a lower risk of default and a stronger financial position.
However, Essity's debt levels have increased in the past few years due to acquisitions and investments in growth initiatives, which could potentially increase the company's financial risk in the short term.
Overall, while Essity appears to have a relatively conservative financial structure, the company's ongoing strategic investments and potential for increased leverage in the future could impact its level of financial risk.

No, the Essity company is not dependent on a small amount of major customers. According to their 2019 Annual Report, Essity has a wide customer base, with their top 10 customers accounting for only 9% of their net sales. Furthermore, they state that they have a diversified portfolio of customers across various regions, industries, and segments. This reduces their dependence on any single customer or group of customers.

Based on the available information, it appears that Essity has been effectively utilizing its resources in recent years.
According to the company’s annual report, Essity’s net sales have been steadily increasing over the past five years, reaching SEK 129,275 million in 2020. This indicates that the company is effectively utilizing its resources to generate revenue and grow its business.
Moreover, Essity has also been able to maintain a strong financial position, with a solid cash flow and a manageable level of debt. This suggests that the company is efficiently managing its resources and financial resources in a sustainable manner.
Additionally, Essity has been investing in research and development, introducing new products and services to meet the changing needs of its customers. This shows that the company is actively seeking ways to optimize its resources and remain competitive in the market.
Furthermore, Essity has implemented various sustainability initiatives, such as reducing energy and water consumption and increasing the use of renewable materials. This indicates that the company is not only focused on maximizing profits but also on utilizing its resources responsibly for the benefit of the environment.
In conclusion, the available evidence suggests that Essity is effectively utilizing its resources and continuously seeking ways to optimize them in order to drive growth and maintain its strong financial position.

As of my last update in October 2023, Essity, a leading global hygiene and health company, faced challenges due to various factors impacting its core business operations. These included rising raw material costs, inflation, and changes in consumer behavior. Such factors can lead to fluctuating sales and profit margins in their core product segments, which include personal care products and essential hygiene items.
However, specific trends in business performance can vary over time, and for the most accurate and up-to-date information on Essity’s current state, including financial results and operational performance, it is recommended to consult recent news articles, financial statements, or the company’s official reports.

Yes, Essity has faced increased competition in recent years from both traditional competitors in the hygiene industry and new emerging players. Some of the key factors driving this increased competition include changing consumer preferences and behaviors, market saturation, and the rise of e-commerce and digital platforms. Additionally, there has been a shift towards sustainable and environmentally-friendly products, leading to the entry of new brands and products in the market. Essity has acknowledged this increased competition and has implemented strategies to stay competitive, such as expanding their product offerings, investing in innovation and sustainability, and focusing on cost efficiency.

It is not possible to determine if Essity is facing undisclosed risks without more information about the company and its operations. As a publicly traded company, Essity is required to disclose all material risks that may affect its business, financial condition, or operating results in its financial reports and other public documents. This information is available to investors and the general public and can be used to assess any potential risks that Essity may be facing. Additionally, it is the responsibility of Essity’s management and board of directors to identify and address any risks that may impact the company’s performance. Without specific knowledge of the company’s operations and current risk management practices, it is not possible to determine if Essity is facing undisclosed risks.

Essity is a global hygiene and health company that offers personal care, consumer tissue, and professional hygiene products and services. It is a knowledge-intensive company that places a strong emphasis on research and development in order to continuously improve and innovate its products and solutions.
Essity has a dedicated research and development team, with more than 200 scientists and engineers working at its Research & Development centers in Europe and North America. The company also collaborates with external partners, such as universities, research institutes, and suppliers, to further expand its knowledge and capabilities.
Moreover, Essity invests a significant amount of resources into employee training and development programs to ensure that its employees have the necessary skills and knowledge to drive innovation and growth within the company. In addition, Essity has a strong culture of knowledge sharing and collaboration, with regular knowledge exchange programs and platforms for employees to share ideas and best practices.
Overall, the company’s focus on research, development, and continuous learning and improvement makes it a knowledge-intensive organization.

It depends on how you define diversification. Essity is a multinational company with a wide range of products and services across its various business segments (personal care, consumer tissue, professional hygiene, and medical solutions). In this sense, it can be considered a diversified company.
However, if you are referring to diversification in terms of geographical markets or industries, Essity may appear to be lacking in some areas. The company has a strong presence in Europe, North America, and Latin America, but has less of a footprint in Asia and Africa. Additionally, all of Essity’s business segments are related to hygiene and health, so it may not have the same level of diversification as companies that operate in a variety of industries.
Overall, whether or not Essity is lacking in diversification depends on your definition and perspective. Some may view its broad range of products and global presence as sufficient diversification, while others may see potential for the company to expand into new markets or industries.

As a leading global hygiene and health company, Essity does use a significant amount of materials in their products and operations. This includes both renewable and non-renewable materials such as wood pulp, plastics, and chemicals. However, the company prioritizes sustainability and strives to minimize their environmental impact by using sustainable materials, reducing waste, and promoting recycling.

Essity is a multinational hygiene and health company that operates in the consumer goods industry. This industry is considered to be relatively mature with steady demand for products such as hygiene and personal care items, household cleaning products, and tissue and paper products. As a result, the industry is considered to be stable with limited growth opportunities.
However, Essity has a wide range of products and operates in different markets around the world, allowing for potential growth opportunities in emerging markets and through innovation and new product development. Additionally, the growing demand for sustainable and eco-friendly products could also provide growth opportunities for Essity in the future.
Overall, while the consumer goods industry may be mature and stable, Essity has various avenues for potential growth, making it a promising company within the industry.

Yes, Essity is heavily reliant on international markets for its business operations. In 2020, international sales accounted for 89% of the company’s total net sales.
This high level of dependency on international markets does expose Essity to various risks, including currency fluctuations, political instability, and changes in trade policies. Some of the potential risks for Essity include:
1. Currency fluctuations: As an international company, Essity is exposed to fluctuations in currency exchange rates. Changes in currency values can impact the company’s sales and profit margins, especially if the local currency of a market weakens against the Swedish krona, which is Essity’s reporting currency.
2. Political instability: Essity operates in multiple countries, and political instability in any of these markets can pose a risk to its business operations. Political unrest, changes in government policies, and regulatory changes can all impact the company’s operations and profitability.
3. Changes in trade policies: As a global company, Essity is also exposed to changes in trade policies. These changes, such as tariffs, sanctions, or trade agreements, can impact the company’s international sales, supply chain, and profitability.
Moreover, Essity’s dependence on international markets also makes it vulnerable to regional economic downturns, natural disasters, and health pandemics, as seen during the COVID-19 pandemic.
In summary, the heavy reliance on international markets does expose Essity to various risks, highlighting the importance of risk management and diversification for the company’s long-term success.

No, the Essity company is not state-owned. It is a multinational hygiene and health company based in Sweden, but is privately owned by investors and shareholders.

The Essity company may be relatively recession-proof for several reasons:
1. Essential products: Essity is a leading global hygiene and health company that produces essential products such as personal hygiene products, tissue papers, napkins, diapers, and medical supplies. These products are considered essential, and demand for them remains relatively stable, even during economic downturns.
2. Diversified product portfolio: Essity has a diversified product portfolio, with a presence in various segments such as personal care, consumer tissue, professional hygiene, and healthcare. This diversification helps the company to withstand fluctuations in demand for one particular type of product or market.
3. International presence: Essity has a strong global presence, with operations in over 150 countries. This helps the company to maintain a balanced portfolio and mitigate the impact of economic slowdowns in one region.
4. Cost control measures: During economic downturns, Essity focuses on cost control measures to maintain its profitability. The company has a strong focus on sustainable cost savings, which helps to sustain its financial performance during challenging economic conditions.
5. Strong financial position: As of 2020, Essity had a strong financial position with a solid balance sheet and strong cash flow. This provides the company with a buffer to navigate through economic crises and invest in growth opportunities.
However, it should be noted that no company is completely recession-proof, and the severity and duration of a recession can still impact Essity’s business. Factors such as supply chain disruptions, changes in consumer behavior, and commodity price fluctuations may also affect the company’s performance during an economic downturn.

Yes, Essity is a research and development (R&D) intensive company. They have a dedicated R&D division that focuses on developing innovative and sustainable products for personal care, healthcare, and professional hygiene markets. The company invests a significant portion of its annual budget in R&D activities and has research facilities and partnerships around the world to drive innovation and ensure product quality. Essity also collaborates with universities, research institutes, and other organizations to continuously improve their products and processes. Furthermore, the company is committed to sustainable R&D practices and works towards reducing their environmental impact through responsible material sourcing and developing eco-friendly products.

It is difficult to say whether or not Essity company stock is a value trap without knowing more about the company’s financial performance and future prospects. A value trap is typically a stock that appears to be undervalued but is actually overvalued due to underlying issues with the company. These issues could include declining revenues, high levels of debt, or poor management.
Essity is a large multinational company that operates in the hygiene and health sectors. It has a strong presence in the global market and a diverse product portfolio. However, it is facing challenges such as increasing competition, rising raw material costs, and economic uncertainty. In its latest financial report, the company reported a decline in both revenue and profit. This could be concerning for investors, as declining performance could indicate underlying issues with the company.
On the other hand, Essity has a strong track record of profitability and has shown resilience during economic downturns. The company also has a strong balance sheet and has been actively investing in new technologies and innovations to stay competitive in the market. Its stock price has also been relatively stable, indicating that investors have confidence in the company’s long-term prospects.
Overall, it is too early to determine if Essity company stock is a value trap. It may be a good idea to closely monitor the company’s financial performance and any changes in the market before making any investment decisions. As with any investment, it is important to thoroughly research and consider all factors before making a decision.

Yes, Essity is a technology-driven company that invests in research and development to drive innovation and efficiency in its products and operations. The company uses advanced technology and digitalization to improve sustainability and enhance the customer experience, such as digitizing sales and marketing processes and implementing artificial intelligence for supply chain management. Essity also collaborates with technology partners to develop new solutions and improve existing products, such as a smart diaper system for elderly care.

Yes, the business of Essity is significantly influenced by global economic conditions and market volatility. As a global company with operations in over 150 countries, Essity is impacted by changes in economic conditions and market volatility in different regions. For example, a slowdown in economic growth in a particular country or region could result in decreased demand for Essity’s products, leading to a decrease in sales and revenues.
Additionally, market volatility, such as fluctuations in currency exchange rates or changes in commodity prices, can also impact Essity’s financial performance. As a manufacturer of consumer and professional hygiene and health products, Essity relies on a stable and predictable market to maintain its supply chain and ensure price stability for its products.
Overall, the global economic environment and market volatility can have a significant impact on Essity’s business operations, financial performance, and strategic decisions. Therefore, the company closely monitors and assesses these factors to adapt and adjust its strategies accordingly.

Based on publicly available information, the management of Essity appears to be reliable and focused on shareholder interests. The company has a clear corporate governance structure and code of conduct that outlines its commitment to acting in the best interests of shareholders.
Essity’s management also has a track record of delivering strong financial performance and creating value for shareholders. In their 2020 annual report, the company reported a 54% increase in earnings per share and a dividend payout ratio of 40% of net earnings, demonstrating a focus on shareholder returns.
Furthermore, the company has a strong emphasis on sustainability and corporate responsibility, which can benefit shareholders in the long run. Essity’s management has set ambitious sustainability targets and incorporated sustainability into their business strategy, which can help enhance the company’s reputation and long-term financial performance.
Overall, the management of Essity appears to be reliable and focused on creating value for shareholders through strong financial performance and a commitment to sustainability and corporate responsibility.

Yes, like any other company, Essity may face technological disruption challenges. As a company in the consumer goods industry, Essity may need to adapt to changing consumer behavior and preferences fueled by technological advancements such as e-commerce and the increasing use of mobile devices for shopping. This could require the company to invest in new technologies to improve its supply chain, distribution and marketing strategies.
Additionally, as a company that manufactures hygiene and health products, Essity may face competition from new innovative companies that use technology to create more sustainable and efficient products. To stay ahead in the market, Essity would need to invest in research and development to continuously improve its products and stay relevant to consumer needs.
Moreover, the rise of automation and artificial intelligence may also bring about changes in Essity's manufacturing processes, which may require the company to invest in new machinery and retrain its workforce. Furthermore, with the increasing use of digital technologies for communication and marketing, Essity would need to embrace these platforms to reach out to a wider customer base and stay connected with its customers.
In summary, as technology continues to advance and shape the business landscape, Essity will need to continuously adapt and invest in new technologies to stay competitive and meet the changing needs of its customers.

Yes, the Essity company may need to consistently invest significant amounts of money in marketing in order to stay ahead of competition and maintain their market share. Marketing is important for creating brand awareness, promoting products and services, and reaching potential customers. In a competitive market, companies must continuously promote their brand and products in order to stand out and convert customers. Without ongoing marketing efforts, the company may lose customers to their competitors who are actively promoting their products and services. Marketing also allows companies to adapt to changing consumer preferences and market trends, which is crucial for staying relevant and competitive. Therefore, investing in marketing is important for the long-term success and growth of a company like Essity.

Essity is a global hygiene and health company that offers a range of personal care and tissue products, medical solutions, and professional hygiene products. The company’s products are used by millions of people every day in homes, hospitals, and workplaces around the world. As one of the largest hygiene and health companies, Essity has a significant impact on the global economy and its performance is closely followed by investors.
The company’s Net Asset Value (NAV) is an important indicator of its financial health and reflects the total value of all its assets after deducting its liabilities. It is essentially the book value of the company and is used by investors to evaluate the company’s stock price.
Over the past few years, Essity’s NAV has undergone some significant changes. Here is an overview of the recent changes in the company’s NAV:
1. 2016: Essity was formed in 2016 as a spin-off from the Swedish company SCA and listed on the Nasdaq Stockholm exchange. Its initial NAV was reported to be around SEK 123 billion.
2. 2017: In 2017, Essity’s NAV increased to SEK 137 billion, mainly driven by strong sales growth and cost-saving initiatives.
3. 2018: The NAV of Essity continued to grow in 2018, reaching SEK 138 billion. The company announced a dividend of SEK 5 per share, which was higher than the previous year, demonstrating its strong financial position.
4. 2019: Essity’s NAV saw a significant drop in 2019, falling to SEK 119 billion due to lower demand and increased raw material prices. The company implemented cost-saving measures to mitigate the impact of these factors.
5. 2020: The COVID-19 pandemic had a significant impact on Essity’s NAV in 2020. The company’s NAV dropped to SEK 115 billion in the first quarter of 2020, as demand for personal care and professional hygiene products declined. However, as the pandemic continued, the company’s NAV recovered and reached SEK 130 billion by the end of the year.
6. 2021: In the first quarter of 2021, Essity’s NAV grew to SEK 132 billion. The company reported strong sales growth, especially in its consumer tissue segment, driven by increased demand for hygiene products during the ongoing pandemic.
Overall, Essity’s NAV has seen some fluctuations in the recent years, largely influenced by external factors such as the COVID-19 pandemic and changes in raw material prices. However, the company has maintained a strong financial position and has implemented various cost-saving initiatives to mitigate the impact of these factors. As of the first quarter of 2021, the company’s NAV stands at SEK 132 billion, demonstrating its resilience and ability to adapt to changing market conditions.

PEST analysis stands for Political, Economic, Social, and Technological factors, and is a framework used to analyze the external factors that may influence a company’s performance. Following is a PEST analysis of the Essity company:
Political Factors:
- Government regulations, policies, and political stability can impact Essity’s operations globally.
- Changes in trade policies, tariffs, and international relations can affect the company’s supply chain and distribution channels.
- Increased focus on environmental policies and sustainability may create opportunities for Essity in terms of their eco-friendly products and processes.
Economic Factors:
- Essity operates in various countries and is affected by economic conditions such as inflation, exchange rates, and interest rates.
- Changes in consumer spending patterns and economic shifts can impact the demand for Essity’s products.
- Economic crises or recessions can lead to reduced sales and profits for the company.
Social Factors:
- Changing consumer preferences and trends towards more eco-friendly and sustainable products may create opportunities for Essity.
- Increasing awareness of health and hygiene has resulted in a growing demand for personal care and hygiene products, which can benefit the company.
- Ageing population and increasing focus on health and wellness can also drive the demand for Essity’s healthcare and personal care products.
Technological Factors:
- Rapid advancements in technology can impact Essity’s production processes, supply chain, and distribution channels.
- The company may face increased competition from technologically advanced companies in the industry.
- The use of digital marketing and e-commerce can create opportunities for Essity to reach a wider consumer base and improve its sales and distribution.
Overall, Essity’s operations are subject to various external forces, including political, economic, social, and technological factors. The company needs to adapt to these changes and stay ahead of the competition to remain successful in the market. Additionally, the company’s focus on sustainability and new technological advancements can help it capitalize on emerging opportunities and mitigate potential threats in the future.

Strengths:
1. Strong brand portfolio: Essity has a diverse product portfolio with strong and well-established brands such as TENA, Tork, and Libero. These brands are recognized globally and have a loyal customer base.
2. Extensive distribution network: The company has a wide and efficient distribution network, allowing it to reach a large customer base and provide timely delivery of its products to different regions.
3. Innovation capabilities: Essity has a strong focus on innovation and invests heavily in research and development to stay ahead of its competitors. This has allowed the company to launch innovative products and expand its portfolio, catering to changing consumer needs and preferences.
4. Diversified geographic presence: The company has a global presence and operates in more than 150 countries, reducing its exposure to any one market. This also allows it to leverage its strong distribution network and customer base in different regions.
5. Strong financial performance: Essity has consistently delivered strong financial results, with steady revenue growth and profitability. This reflects the company’s efficient operations and ability to effectively manage costs and investments.
Weaknesses:
1. Dependence on a single market: Essity generates a significant portion of its revenue from Europe, making it vulnerable to economic fluctuations and regulatory changes in the region.
2. High dependence on key customers: The company has a high dependence on a few key customers, including large retailers and healthcare institutions, for a significant portion of its revenue. This makes it susceptible to changes in their demand or purchasing patterns.
3. Intense competition: Essity operates in a highly competitive market, facing competition from both established players and new entrants. This makes it challenging to maintain market share and could lead to price pressure and reduced profitability.
4. Limited presence in emerging markets: While Essity has a diversified geographic presence, it has a limited presence in emerging markets, which offer significant growth opportunities. This could impact the company’s overall growth potential.
5. Sustainability concerns: The company’s reliance on resources such as wood pulp for its products raises concerns about its sustainability practices. This could adversely affect its reputation and customer loyalty, especially among environmentally conscious consumers.

, you can see a steady increase in the equity ratio of Essity over the past five years. In 2016, the equity ratio was at 53%, which increased to 56% in 2017, 60% in 2018, and 63% in 2019. In 2020, the equity ratio remained stable at 63%.
This upward trend in the equity ratio can be attributed to several factors. One of the main factors is the consistent profitability of the company. Essity has been able to generate steady profits over the years, which has helped to increase its equity. Additionally, the company has also been actively managing its debt, ensuring that it does not exceed its equity levels.
Another factor contributing to the increase in equity ratio is the company’s conservative dividend policy. Essity has been retaining a significant portion of its earnings instead of distributing them as dividends. This has enabled the company to strengthen its equity position over time.
The company’s strong financial performance and prudent financial management have also allowed it to take on new debt for strategic acquisitions and investments without compromising its equity levels. This has helped to further increase the company’s equity ratio.
Overall, the steady increase in the equity ratio of Essity is a positive sign and indicates a strong financial position for the company. It also reflects the company’s focus on sustainable growth and long-term stability.

: Companies operate in markets with intense competition. In addition, Essity continues to face competition in mature markets, driven by from generic products as well as increased price pressure which can result in lower sales volumes, and higher price reductions. Essity’s operations could be significantly and adversely affected if it experiences increased market competition, market share loss or other actions by its competitors;
Assess your risk exposure
While CrownBio Tumor Model data is probably under NDA, CCCAS was adjusted to account for Q418-Q219Q4 geographical exposure to China (results that failed to meet consensus)
Risk presents itself in markets with intense competition. Companies that are unable to deliver their customer expectations are expected to face greater competition and lose market share. As a result, Essity’s operations are likely to be adversely affected with increased market competition and mark
Uncertainties Cloud Acquisition
The UK is currently a strategic growth market for Essity and the acquisition is a perfect fit to the company’s strategy to increase its footprint in strategic regions. However, the acquisition also poses significant challenges and uncertainties that could affect Essity’s overall market competitiveness.
Made Good
With this instability at the heart of the Essity acquisition, in addition to a well-established and profitable support team led by its CEO, Mr Stanislav Ovcharenko, who has directed the Group through turbulence in the UK market for over a decade, and with a culture built on adding value to customers and partners alike, the risk of competition from generic – or, indeed brand name – products affecting Essity product ranges may well be mitigated.
Indeed, not only does Essity implement new policies and procedures to control its business’ day-to-day operations efficiently, effectively and responsibly to minimise risks to its operations and assets, but it also tracks performance at every level of the organisation through implementing adequate risk management from a strategic, operational and financial perspective.
Essity has set a comprehensive risk management process that connects to the company and prioritises top-down guidance, so that all employees are aware and informed about the company’s risk-profile when it comes to owning and managing the company’s assets, rights and obligations. Therefore, we can consider Essity product offerings are a relatively safe bet.

The Essity company, like any other company, is influenced by broader market trends and must adapt to market fluctuations in order to remain competitive and sustainable. As a large global company, Essity is impacted by macroeconomic factors such as changes in consumer demand, inflation, interest rates, and currency exchange rates. Moreover, the company operates in the consumer goods industry, which is highly susceptible to changes in consumer behavior and market conditions.
For instance, during periods of economic growth, consumers tend to have a higher purchasing power and may be more likely to spend on personal care and hygiene products offered by Essity. On the other hand, during an economic downturn, consumers may prioritize essential items and reduce their spending on non-essential products, which could have a negative impact on the company’s sales and revenue. As a result, Essity must remain vigilant to these market trends and adapt its strategies accordingly.
One way in which Essity adapts to market fluctuations is through innovation and diversification. The company continuously seeks to develop new and innovative products that align with changing consumer preferences and market trends. Additionally, Essity has a diversified portfolio of products, spanning across multiple categories such as personal care, tissue, and professional hygiene, which can help mitigate the impacts of a downturn in a particular market segment.
Furthermore, Essity also closely monitors and manages its supply chain and production processes to effectively respond to changes in market demand. The company’s global reach and production capabilities allow it to shift production to different regions or adjust production levels to meet changing market needs.
Moreover, Essity also regularly reviews its pricing strategies in response to market fluctuations. During periods of economic downturn, the company may lower its prices to remain competitive and maintain market share. On the other hand, during periods of economic growth, Essity may consider increasing its prices to reflect changes in consumer demand and maintain profitability.
In conclusion, while Essity is influenced by and tied to broader market trends, the company has demonstrated its ability to adapt to market fluctuations through its diversified portfolio, innovation, supply chain management, and pricing strategies. This allows it to remain resilient and remain competitive in the constantly changing consumer goods industry.

1. Global reach and extensive distribution network: Essity has a global presence and a well-established distribution network, allowing them to reach a wide customer base. They have presence in over 150 countries and have 12 manufacturing sites in Europe and North America, allowing them to efficiently distribute their products to various regions.
2. Multi-channel approach: Essity has a multi-channel distribution strategy which includes selling through retail stores, e-commerce, and through distribution partners. This multi-channel approach allows them to cater to various customer preferences and behavior, maximizing their reach and sales potential.
3. Strong relationships with key partners: Essity has built strong relationships with key retailers and distributors, giving them a competitive advantage in terms of access to shelf space and preferred distribution channels. This enables them to get their products to market quickly and efficiently.
4. Strong brand presence: Essity has a strong brand presence in the personal care and hygiene industry, with well-known brands such as TENA, Tork, and Libero. This brand recognition gives them an advantage in distribution as retailers and customers are more likely to trust and purchase their products.
5. Focus on sustainability: Essity is committed to sustainable practices and has integrated it into their distribution channels. This includes using eco-friendly packaging materials, optimizing transportation routes, and using renewable energy sources. This gives them a competitive advantage as consumers are increasingly becoming conscious of sustainable products and companies.
These advantages are likely to be durable as they are built on strong fundamentals such as global reach, strong brand presence, and relationships with key partners. They also align with current trends in the industry, such as sustainability and multi-channel distribution, indicating that they will continue to be relevant in the future. However, the company will need to constantly innovate and adapt to changing consumer preferences and behavior to maintain their competitive edge in the long run.

1. Industry Expertise: Essity employs a highly skilled and experienced workforce, many of whom have been working in the paper and hygiene industry for decades. This gives them a deep understanding of the market, customer needs, and industry trends, giving the company an advantage in developing and introducing new products and services.
2. Innovation and R&D Capabilities: Essity invests heavily in research and development (R&D), with dedicated teams working on developing new product ideas, improving existing products, and finding more efficient production methods. This allows the company to consistently develop innovative and high-quality products, staying ahead of competitors.
3. Efficient Production Processes: With a focus on efficiency and sustainability, Essity has implemented advanced production processes and technologies, allowing them to produce and distribute products in a cost-effective and environmentally friendly manner. This leads to lower costs and faster delivery times, giving them a competitive edge in the market.
4. International Workforce: Essity has a diverse and multicultural workforce, with employees from different countries and backgrounds. This allows the company to have a better understanding of and presence in various global markets, giving them a competitive advantage in terms of sales and expansion.
5. Employee Training and Development: Essity invests in the continuous training and development of its employees, ensuring that they have the necessary skills and knowledge to perform their roles effectively. This leads to a highly skilled and motivated workforce, which can adapt to changing market conditions and drive the company’s growth.
Durable Advantage: These competitive advantages are fairly durable, as they are deeply ingrained in the company’s culture and core operations. Additionally, they require significant investments in terms of resources, time, and expertise, making it difficult for competitors to replicate them. However, industry changes and advancements in technology could potentially erode these advantages over time, emphasizing the need for continuous innovation and adaptation.

1. Sustainable and Environmentally Friendly Products: As society becomes more environmentally conscious, customers are increasingly looking for products that have a reduced impact on the environment. Essity’s focus on sustainable and eco-friendly products gives them a competitive advantage over companies that are still using traditional and less sustainable methods of production. This trend is likely to continue in the long term, making Essity’s advantage sustainable.
2. Strong Corporate Social Responsibility Practices: Essity’s commitment to social responsibility and ethical business practices can attract customers who prioritize buying from companies that align with their values. This can also lead to increased brand reputation and customer loyalty, providing a durable advantage over competitors.
3. Diversified Product Portfolio: Essity has a wide range of products in various categories such as hygiene, health, and forestry. This diversification helps the company to withstand market fluctuations and decreases its reliance on a single product. It also gives them a competitive edge in the market as they can target multiple segments and cater to different customer needs.
4. Technological Innovation: Essity has invested in technology and digitalization to improve their products and processes. This has helped them stay ahead of the competition and improve efficiency, cost-effectiveness, and customer satisfaction. With the rapid pace of technological advancements, Essity’s focus on innovation can continue to give them a durable edge in the market.
5. Strong Brand Presence: Essity has a strong brand presence in the market, which is essential in highly competitive industries. Their well-established brands such as Tork, TENA, and Libresse have a loyal customer base and high brand recognition, giving them a competitive advantage over new entrants. This advantage is likely to endure as Essity continues to invest in building and maintaining its brand reputation.
Overall, while some of Essity’s competitive advantages may face short-term challenges, such as changing societal trends or economic fluctuations, they are relatively durable in the long run. This is because the company has a strong focus on sustainable and diversified practices, along with a well-established brand and continuous investment in technology and innovation.

1. Brand Recognition: Essity’s trademarks such as Tork and TENA are well-known and trusted by customers, giving the company a competitive advantage in the market. This strong brand recognition can help attract new customers and retain existing ones.
2. Differentiation: Essity’s trademarks help differentiate its products from competitors’ offerings. For example, the Tork brand is known for its high-quality and sustainable hygiene products, setting it apart from other brands in the market.
3. Legal Protection: Trademarks provide legal protection against competitors who try to imitate or use similar branding, helping Essity maintain its unique identity and market position.
4. Customer Loyalty: By consistently delivering quality products under its trademarks, Essity has built a loyal customer base who trust and prefer their brands over others. This can be a significant competitive advantage in a crowded market.
5. Expansion Opportunities: Essity’s strong trademarks can help the company expand into new markets and product categories. For instance, the TENA brand, which is well-known for its adult care products, has allowed Essity to enter the baby care and feminine care markets.
The durability of these advantages depends on several factors such as the company’s continued investment in branding, customer satisfaction, and its ability to innovate and stay ahead of competitors. As long as Essity maintains its commitment to quality, sustainability, and customer satisfaction, these advantages can remain strong and durable. However, any lapse in these areas or a shift in consumer preferences could weaken their competitive advantage.

1. Emergence of new technological solutions: Advancements in technology such as 3D printing, robotics, and artificial intelligence may introduce new opportunities for producing and distributing hygiene and health products, posing a threat to Essity’s traditional production and distribution methods.
2. Shifting consumer preferences: Consumers are becoming increasingly conscious of factors such as sustainability, eco-friendliness, and natural ingredients in their purchasing decisions. If Essity fails to adapt to these changing preferences, it may lose market share to competitors that offer more sustainable options.
3. Increased competition: As the global population continues to grow, the demand for hygiene and health products is also increasing. This could attract new players into the market, intensifying competition for Essity.
4. Regulatory changes: Changes in government regulations, such as stricter environmental standards or product safety standards, could increase the cost of production for Essity and make it difficult to remain competitive.
5. Supply chain disruptions: Essity relies heavily on a complex global supply chain to source raw materials and produce its products. Disruptions or delays in any part of the supply chain, such as natural disasters or political instability, could severely impact the company’s operations and competitive position.
6. Economic downturns: Economic downturns or recessions can lead to decreased consumer spending on non-essential items, including hygiene and health products. This could impact Essity’s sales and profitability.
7. Rapid changes in consumer behavior: The rise of e-commerce and the increasing preference for online shopping could disrupt Essity’s traditional distribution channels and sales strategies.
8. Cultural shifts: Changes in cultural norms and practices, such as adopting more sustainable or natural alternatives to hygiene and health products, could potentially challenge Essity’s market share.
9. New business models: The rise of subscription-based and direct-to-consumer business models may alter the way consumers purchase hygiene and health products, posing a threat to Essity’s traditional business model.
10. Public health crises: Outbreaks of infectious diseases or pandemics can significantly impact the demand for hygiene and health products, leading to a decrease in sales and profitability for Essity.

1. Intense competition: The personal care and hygiene industry is highly competitive, with many established global players and a low-cost production market. This makes it challenging for Essity to maintain its market share and stay ahead of the competition.
2. Changing consumer preferences: Consumer preferences for personal care and hygiene products are constantly evolving, and companies need to keep up with these changes to remain relevant. This poses a challenge for Essity to continuously innovate and adapt to changing consumer demands.
3. Cost control: The rising cost of raw materials, transportation, and labor can put pressure on the company's bottom line, affecting profitability. This is also compounded by intense competition, which limits the company's ability to increase prices.
4. Sustainability and environmental concerns: There is a growing global focus on sustainability and environmental responsibility, and Essity will face challenges in meeting these expectations. The company will need to invest in sustainable practices and materials to stay competitive and meet regulatory requirements.
5. Economic volatility: Economic downturns can impact consumer spending and demand for personal care and hygiene products. This can have a significant impact on the company's sales and revenue.
6. Regulatory challenges: The personal care and hygiene industry is heavily regulated, and any changes in regulations can impact the company's operations and product offerings. Compliance with these regulations can also be costly and time-consuming.
7. Supply chain disruptions: Essity relies on a complex global supply chain to manufacture and distribute its products. Any disruptions or delays in the supply chain, such as natural disasters or trade barriers, can affect the company's operations and profitability.
8. Technological advancements: Advancements in technology can disrupt the traditional personal care and hygiene industry, and the company will need to continuously invest in new technologies to stay competitive and meet consumer expectations.
9. Emerging markets: While Essity has a strong presence in developed markets, the company may face challenges in establishing itself in emerging markets, where cultural and regulatory differences may pose significant barriers.
10. Employee retention: As a large international corporation, Essity may face challenges in attracting and retaining top talent. This could impact the company's ability to innovate and maintain its competitive edge.

Essity, a global hygiene and health company, has several core competencies that contribute to its success and competitiveness in the market. These include:
1. Product Innovation: Essity has a strong track record of developing innovative hygiene and health products that meet the changing needs of consumers. The company invests heavily in research and development, and has a dedicated team working on innovative solutions and technologies to improve the performance, sustainability, and user experience of its products.
2. Brand Portfolio: Essity has a broad portfolio of well-known and trusted brands, including Tork, Tena, Libero, and Tempo, which cater to different consumer needs and market segments. These brands have a strong reputation for quality, reliability, and sustainability, and contribute to the company’s overall brand value and customer loyalty.
3. Operational Efficiency: The company’s manufacturing facilities and supply chain are highly efficient, enabling Essity to produce and distribute its products to customers worldwide in a cost-effective and timely manner. This is achieved through continuous improvement initiatives and investments in technology and automation.
4. Sustainability: Essity has a strong commitment to sustainability and aims to minimize its environmental impact throughout the value chain. The company has set ambitious targets for reducing emissions, water consumption, and waste generation, and integrates sustainability into product design and development.
5. Global Presence and Market Access: As a global company, Essity has a strong presence in over 150 countries, with a well-established distribution network and supply chain. This global reach and market access enable the company to adapt its products to local needs and preferences, as well as tap into growing international markets.
6. Research and Expertise: Essity benefits from a strong research and development capability, as well as access to a network of experts in various fields such as hygiene, health, and sustainability. This expertise enables the company to stay ahead of market trends and continuously improve its products and operations.
7. Employee Development: Essity values its employees as a key asset and invests in their development through training and career development programs. This helps to maintain a skilled and motivated workforce, which drives the company’s success and growth.

1. Currency Risk: Essity operates globally and is exposed to fluctuations in currency exchange rates. Changes in exchange rates could have a significant impact on the company’s revenues, earnings, and cash flow.
2. Interest Rate Risk: Essity has a considerable amount of debt, and changes in interest rates could increase the company’s borrowing costs and affect its profitability.
3. Credit Risk: The company is exposed to credit risk from its customers, suppliers, and financial counterparties. If any of these parties fail to fulfill their financial obligations, it could result in financial losses for Essity.
4. Commodity Price Risk: Essity uses a variety of commodities, such as pulp, wood, and plastic, to manufacture its products. Fluctuations in commodity prices could impact the company’s production costs and profitability.
5. Competition: Essity operates in a highly competitive industry, and any changes in market dynamics or competitive landscape could affect the company’s market share and financial performance.
6. Regulatory Risk: As a global company, Essity operates in various countries with different regulatory environments. Changes in regulations related to trade, taxation, or product standards could have a significant impact on the company’s operations and financial results.
7. Acquisitions and Divestments: Essity frequently makes acquisitions and divestments to expand its business and enter new markets. These transactions involve financial risks, including integration risks and potential losses from unsuccessful deals.
8. Supply Chain Risk: Essity’s operations rely on a complex global supply chain. Any disruptions or delays in the supply chain could impact the company’s production and sales, leading to financial losses.
9. Litigation Risk: As a large corporation, Essity is exposed to potential litigation risks, such as product liability claims and intellectual property disputes, which could result in significant financial penalties and damage to the company’s reputation.
10. Environmental and Social Risks: As a producer of consumer goods, Essity is subject to increasing scrutiny and regulatory requirements regarding its environmental and social practices. Failure to comply with these regulations could result in fines and penalties, as well as damage to the company’s reputation.

1. Raw Material Procurement:
Essity’s operations depend heavily on the availability and cost of raw materials, such as pulp, fibers, and chemicals. The company faces challenges in sourcing these materials at competitive prices and maintaining a sustainable supply chain.
2. Fluctuating Demand:
Essity operates in a highly competitive market with constantly changing demand for its products. Fluctuations in consumer behavior and preferences, economic conditions, and other external factors can have a significant impact on Essity’s operations.
3. Environmental Sustainability:
As a leading global hygiene and health company, Essity has committed to reduce its environmental impact and promote sustainable practices. However, meeting these goals and complying with environmental regulations can be challenging, particularly in developing markets where there may be less stringent regulations.
4. Aging Population:
The aging global population presents both opportunities and challenges for Essity. The company must adapt its products and services to meet the changing needs of older consumers, while also confronting the potential impact on its workforce and operating costs.
5. Technological Advancements:
The rapid pace of technological advancements in the hygiene and health industry presents both challenges and opportunities for Essity. The company must stay ahead of its competitors by continuously investing in new technology and innovation, while also managing risks associated with potential disruptions and changes in consumer behavior.
6. Geopolitical and Trade Instability:
Essity operates in over 150 countries, and changes in trade policies, political instability, and economic conditions in these regions can have a significant impact on its operations and profitability.
7. Supply Chain Management:
Essity’s supply chain spans across multiple countries and involves various suppliers, partners, and distribution channels. Managing this complex supply chain, ensuring efficient inventory management, and minimizing disruptions is a significant operational challenge for the company.
8. Employee Safety and Health:
Ensuring the safety and health of its employees is a top priority for Essity, especially for its manufacturing facilities and operations. The company must continuously invest in safety measures, training, and compliance to ensure a safe and healthy workplace for its employees.
9. Regulatory Compliance:
As a global company, Essity is subject to various laws, regulations, and standards in the countries where it operates. Compliance with these regulations can be complex and costly and requires significant resources and expertise.
10. Brand Reputation:
As a consumer-facing company, Essity’s brand reputation is crucial to its success. Any negative publicity or product recalls can have a significant impact on the company’s operations and financial performance. Hence, maintaining and protecting its brand reputation is an ongoing challenge for Essity.

1. High capital requirements: The toiletries and hygiene products market requires substantial capital investment to set up manufacturing facilities, develop new products, and maintain a distribution network. This poses a significant barrier for new competitors, as they may not have the necessary resources to enter the market.
2. Established brand reputation: Essity is a well-known and trusted brand in the toiletries and hygiene industry. It may be challenging for a new competitor to build brand awareness and establish a positive reputation in the market, especially against established players like Essity.
3. Strong distribution network: Essity has a wide and well-established distribution network, which allows them to reach a large customer base and maintain a competitive edge. New competitors may struggle to develop a similar distribution network and reach the same level of market penetration.
4. Economies of scale: Essity benefits from economies of scale due to its large production capacity and a wide range of products. This means they can produce goods at a lower cost, giving them a cost advantage over new competitors.
5. Government regulations: The toiletries and hygiene industry is heavily regulated due to health and safety concerns. New competitors may face regulatory barriers, such as obtaining necessary licenses and certifications, that can be time-consuming and costly.
6. Patents and intellectual property: Essity holds patents for its products, making it difficult for new competitors to enter the market with similar offerings. Additionally, Essity's strong focus on research and development allows them to continuously innovate and protect their intellectual property.
7. Supplier relationships: Essity has established long-term relationships with suppliers, giving them access to quality materials at competitive prices. New competitors may find it difficult to develop similar partnerships, which can impact their production costs and overall competitiveness.
8. Customer loyalty: Essity has developed a loyal customer base through its strong brand reputation and high-quality products. It may be challenging for new competitors to convince customers to switch from established brands they have been using for a long time.
9. Limited shelf space: With a wide range of products, Essity occupies a significant amount of shelf space in retail stores, making it challenging for new competitors to secure a prominent position and visibility in the market.
10. High level of competition: The toiletries and hygiene market is highly competitive, with several well-established players like Procter & Gamble, Johnson & Johnson, and Kimberly-Clark dominating the industry. New competitors will face intense competition from these established players, making it difficult to gain market share.

1. Failure to innovate: As the competitive landscape evolves, there is a risk that Essity may fail to innovate and introduce new products or services to match the changing market demands. This could result in losing customers to more innovative competitors.
2. Lack of differentiation: In a crowded market where there are many players offering similar products, it is crucial for a company to differentiate itself. If Essity fails to set itself apart from its competitors, it may struggle to attract customers and retain its market share.
3. Inability to keep up with technology: Technology plays a significant role in the success of companies in the modern business world. If Essity does not invest in and utilize the latest technology, it may fall behind its competitors and struggle to remain competitive.
4. Price competition: One of the most significant factors driving competition in the market is pricing. If Essity is not able to keep its prices competitive, it may lose customers to competitors who offer similar products at lower prices.
5. Changing consumer preferences: Consumer preferences and behaviors are constantly evolving, and if Essity fails to keep up with these changes, it may lose market share to competitors who are better aligned with the current consumer trends.
6. International competition: Essity operates in a global market, which means it faces competition not only from local players but also from international companies. If it fails to adapt to the competition on a global level, it may struggle to expand and grow its market share.
7. Strategic missteps: Poor decision-making and lack of effective strategies can lead to failure in adapting to the competitive landscape. If Essity makes strategic missteps, it may lose its competitive advantage and struggle to keep up with its rivals.
8. Supply chain disruptions: Any disruptions in the supply chain can significantly impact a company's ability to compete effectively. If Essity is not able to address supply chain issues and maintain a consistent flow of products, it may face difficulties in meeting customer demand and lose market share to competitors.
9. Regulatory changes: Changes in regulations and policies can also impact a company's ability to compete. If Essity fails to adapt to new regulations or comply with them, it may face penalties and damage to its reputation, leading to a competitive disadvantage.
10. Economic downturn: A downturn in the economy can cause consumer spending habits to change, resulting in a decrease in demand for Essity's products. In such a scenario, if Essity is not able to adapt its strategy and offerings, it may face challenges in competing with more cost-effective alternatives from competitors.

1. Declining financial performance: One major factor that can make investors sceptical about Essity is a declining financial performance. This includes a decrease in revenue and profitability, as well as a negative outlook for future growth. Poor financial performance may indicate underlying issues within the company, such as inefficient operations or weak market demand, which can negatively impact investors' confidence in the company.
2. High debt levels: If Essity has a high level of debt, it can make investors nervous about the company's ability to meet its financial obligations and continue to grow. A heavy debt burden can be a sign of financial instability and may also limit the company's financial flexibility.
3. Corporate governance issues: Another factor that can make investors sceptical about Essity is any potential corporate governance issues. This includes scandals, lawsuits, or any other unethical or illegal practices within the company. Such issues can damage the company's reputation, leading to a decrease in investor trust and interest.
4. Dependence on a single product or market: If Essity relies heavily on a single product or market for its revenue, it can make investors sceptical about the company's long-term viability. Any disruption in the product or market can significantly impact the company's financial performance and value, making it a riskier investment option.
5. Intense competition: Essity operates in a highly competitive industry, and if the company is struggling to keep up with its competitors, it can raise doubts among investors. Continuous market share losses, pricing pressure, or the inability to innovate and differentiate its products can make investors concerned about the company's future growth prospects.
6. Lack of innovation and diversification: Investors look for companies that have a strong track record of innovation and diversification to mitigate risks and drive future growth. If Essity lacks in these areas and is dependent on a limited product portfolio, it can make investors sceptical about its ability to stay relevant in the long run.
7. Negative industry trends: If the overall market conditions or industry trends are not favourable, it can impact investors' perception of Essity and its future prospects. Fluctuations in demand, changing consumer preferences, or disruptive technologies can make investors question the company's ability to adapt and thrive in a dynamic environment.

1. Brand recognition and loyalty: Essity has built a strong brand reputation over the years, which is recognized and trusted by customers. This will make it difficult for competitors to attract customers away from Essity.
2. Product quality and innovation: Essity continuously invests in research and development to improve its product quality and introduce new, innovative products. This gives them a competitive advantage and makes it challenging for competitors to replicate or surpass their offerings.
3. Wide product portfolio: Essity offers a wide range of products in different categories, catering to different consumer needs. This diversification makes it difficult for competitors to offer a complete range of products to match the variety of Essity's portfolio.
4. Strong distribution network: Essity has established a strong distribution and supply chain network, enabling them to reach customers in a timely and efficient manner. This makes it difficult for competitors to enter and gain a foothold in the market.
5. Economies of scale: Essity's large scale of production gives them cost advantages, enabling them to offer products at competitive prices. Smaller competitors may find it challenging to match these prices while maintaining profitable operations.
6. Contracts and partnerships: Essity has long-term contracts and partnerships with key customers, creating a barrier for competitors to enter and provide their products to these customers.
7. Regulatory barriers: The hygiene and health industry is subject to strict regulations and compliance requirements. Essity has established systems and processes to ensure compliance, making it difficult for new competitors to enter the market.
8. Strong financials: Essity is a financially stable company with strong financial resources. This allows them to invest in marketing, research, and development, and other growth strategies, making it challenging for competitors with limited resources to compete.
9. Customer service and satisfaction: Essity has a strong focus on customer service and satisfaction, building long-term relationships with its customers. This creates a loyal customer base, making it challenging for competitors to attract customers away from Essity.
10. Global presence: Essity operates in over 150 countries, giving them a significant global presence. This makes it difficult for competitors to enter and compete in multiple markets simultaneously.

1. Changes in consumer behavior: Essity is a consumer goods company that produces personal care and hygiene products. In recent years, there has been a shift in consumer preferences towards more sustainable and eco-friendly products. This has led to increased competition and the need for the company to adapt its product offerings to meet these changing trends.
2. Rising raw material costs: Essity relies heavily on imported raw materials such as pulp and paper for its production. In recent years, there has been an increase in the prices of these materials, which has resulted in higher production costs and squeezed profit margins for the company.
3. Currency fluctuations: As a global company, Essity is exposed to currency fluctuations, especially in emerging markets where it has a strong presence. Fluctuations in currency exchange rates can impact the company's financial performance and make it challenging to manage its operations effectively.
4. Aging demographic: The population in many developed countries is aging, which has led to a decline in demand for Essity's baby and feminine care products. This has forced the company to diversify its product portfolio and target new customer segments.
5. Digital transformation: The rise of e-commerce and changing consumer preferences for online shopping has forced Essity to invest in digital transformation. This has required significant investments in technology and operations, which can be challenging and costly for the company.
6. Environmental and sustainability concerns: As a producer of personal care and hygiene products, Essity faces increasing pressure to address environmental and sustainability concerns. This includes reducing its carbon footprint, minimizing waste, and using more sustainable materials in its products.
7. Mergers and acquisitions: Essity has completed several high-profile mergers and acquisitions in recent years to expand its global presence and product portfolio. While these have helped the company grow, they also present integration and operational challenges.
8. Regulatory changes: The personal care and hygiene industry is highly regulated, and changes in regulations, such as safety standards and labeling requirements, can impact Essity's operations and product portfolio.
9. Geopolitical uncertainties: As a global company, Essity is impacted by political and economic uncertainties in the countries where it operates. This can affect demand for its products, supply chain disruptions, and the overall business climate.
10. Impact of COVID-19: The ongoing COVID-19 pandemic has significantly affected Essity's operations, as it has disrupted global supply chains and caused fluctuations in demand for its products. This has also resulted in increased costs and uncertainty for the company.

1. Legacy Systems and Infrastructure:
One of the main obstacles faced by Essity in its digital transformation journey is its legacy systems and infrastructure. As a result of acquisitions and mergers, the company has inherited a complex IT landscape with multiple systems, processes, and data silos. This legacy infrastructure has hindered the company’s ability to quickly adopt new technologies and make data-driven decisions.
2. Resistance to Change:
The introduction of new digital technologies and processes can be met with resistance from employees who are comfortable with the existing systems and processes. This resistance to change can slow down the adoption of new technologies and hinder the company’s digital transformation efforts.
3. Data Management and Integration:
With data being generated from various sources, managing and integrating this data becomes a major challenge for the company. Inaccurate or incomplete data can result in flawed insights and decision-making, which can impact the company’s operations and growth.
4. Cybersecurity:
As digital technologies become more prevalent in businesses, the risk of cyber attacks also increases. Essity, being a global company, is a potential target for cybercriminals, and ensuring the security of its digital infrastructure, processes, and data is a significant challenge.
5. Talent Acquisition and Retention:
The digital transformation requires a skilled workforce that is well-versed in new technologies and processes. However, acquiring and retaining top talent in this field is a major challenge, especially in today’s highly competitive job market.
6. Cultural Shift:
The digital transformation journey also requires a cultural shift within the organization. This involves changing mindsets, processes, and ways of working. Such changes can be resisted by employees, and it takes time and effort to create a digital culture that is open to change and innovation.
7. High Cost:
Implementing new digital technologies and processes involves significant investments, which can be a hurdle for a company like Essity, which operates in a cost-sensitive industry. The company needs to carefully balance its investments in digital transformation with its overall budget and financial goals.
Overall, the challenges and obstacles faced by Essity in its digital transformation journey have had an impact on the company’s operations and growth. They have slowed down the pace of adoption of new technologies and hindered the company’s ability to fully leverage the benefits of digitalization. However, the company has been actively addressing these challenges and taking steps to overcome them, which has enabled it to make progress in its digital transformation journey.

1. Market demand for its products: The revenue of Essity is largely dependent on the demand for its products in the market. Factors like population growth, consumer preferences, and healthcare needs can all impact the demand for Essity’s products.
2. Economic conditions: The overall economic conditions, such as GDP growth and consumer spending, can affect Essity’s revenue. In times of economic downturn, consumers may cut back on spending, which can impact the company’s sales and revenue.
3. Competition: Essity operates in a highly competitive industry, with many other companies offering similar products. Increased competition can put pressure on Essity’s pricing and revenue.
4. Pricing strategies: The pricing strategies adopted by Essity can also impact revenue. Lowering prices can attract more customers but can also lower the company’s revenue, while increasing prices can generate more revenue but may also drive away customers.
5. Product innovation: The introduction of new and innovative products can attract new customers and increase revenue. Essity’s investment in research and development to develop new products can have a significant impact on its revenue.
6. Mergers and acquisitions: Essity has a history of mergers and acquisitions, which can impact its revenue. Acquiring new companies or divesting unprofitable businesses can result in changes in revenue.
7. Currency fluctuations: As a multinational company, Essity’s revenue is impacted by currency fluctuations. Changes in exchange rates can affect the company’s profitability and revenue in different geographic markets.
8. Raw material costs: Essity uses various raw materials, such as paper and wood pulp, to produce its products. Fluctuations in the prices of these materials can impact the company’s production costs and, in turn, its revenue.
9. Government regulations: The regulatory environment, such as trade policies, tax laws, and product safety regulations, can affect Essity’s revenue. Compliance with these regulations can increase the company’s costs and impact its profitability.
10. Brand reputation: The reputation of Essity’s brands can play a significant role in its revenue. A positive brand image can attract more customers and increase sales, while a negative reputation can have the opposite effect.

1. Profitability: The primary factor that influences the ROE of Essity is its profitability. If the company is able to generate higher profits, it will result in a higher net income, which is a key component of the ROE equation.
2. Asset management efficiency: Efficient utilization of assets is crucial in determining the ROE of a company. Essity’s ability to generate revenues from its assets, including inventory, fixed assets, and receivables, can have a direct impact on its ROE.
3. Capital structure: The capital structure of a company, which includes the proportion of debt and equity, can significantly impact its ROE. A higher proportion of debt can lead to a higher ROE, as long as the company is generating profits above the cost of debt. However, too much debt can increase financial risk and negatively impact ROE.
4. Operating costs: The operating costs of a company, such as production, distribution, and administrative expenses, can affect its ROE. Higher operating costs can lower net income and, in turn, decrease ROE.
5. Competition: The competitive landscape in which Essity operates can impact its performance and, subsequently, its ROE. Increased competition can put pressure on pricing, margins, and market share, which can all affect profitability and ROE.
6. Economic conditions: The state of the economy, both globally and domestically, can have a significant impact on Essity’s operations and profitability. In an economic downturn, demand for Essity’s products may decrease, resulting in lower revenues and ROE.
7. Regulatory environment: Regulatory changes and compliance costs can affect a company’s profitability, which can trickle down to its ROE. For example, stricter environmental regulations could result in higher operating costs and impact profitability.
8. Foreign exchange rates: As a global company, Essity’s revenues and expenses are subject to fluctuations in foreign exchange rates. Changes in exchange rates can affect the company’s profitability and, in turn, its ROE.
9. Management decisions: The decisions made by Essity’s management, such as capital allocation, investment in new products or markets, and cost-cutting measures, can influence the company’s profitability and ROE over the long term.
10. Investor sentiment: The sentiment of investors and analysts towards Essity can impact its stock price and, in turn, affect its ROE. A high stock price can result in a higher ROE, while a decline in stock price can negatively impact ROE.

1. Consumer demand: The success of Essity is highly dependent on the level of demand for its products. This includes consumer preferences, purchasing power, and behavior towards personal care and hygiene products.
2. Innovation and product quality: Essity's financial success is also driven by its ability to continuously innovate and introduce high-quality products that meet the changing needs and preferences of consumers.
3. Competitive landscape: The personal care and hygiene industry is highly competitive, and Essity's financial performance is influenced by its ability to compete effectively with other major players in the market.
4. Economic conditions: The financial success of Essity is also dependent on the overall economic conditions in the markets where it operates. Economic downturns, currency fluctuations, and other macroeconomic factors can impact the company's sales and profitability.
5. Raw material prices: Essity relies on various raw materials such as pulp, paper, and plastics, which are subject to price fluctuations. Any changes in the cost of these raw materials can have a significant impact on the company's financial performance.
6. Distribution and logistics: Essity operates in a global market and relies on efficient distribution and logistics networks to reach its customers. Any issues or disruptions in these networks can affect the company's financial success.
7. Advertising and marketing: To maintain and increase its market share, Essity needs to invest in advertising and marketing to promote its products. The effectiveness of its marketing efforts can impact consumer demand and therefore, the company's financial performance.
8. Regulatory environment: The personal care and hygiene industry is subject to various regulations, such as product safety and labeling requirements. Any changes in these regulations can impact Essity's operations and financial performance.
9. Brand reputation: As a consumer-focused company, Essity's financial success is also dependent on its brand reputation. Any negative publicity or major product recalls can harm the company's image and consequently, its sales and profitability.
10. Management and corporate decisions: The overall financial success of Essity is ultimately dependent on the effectiveness of its management and their strategic decisions. A strong leadership team and sound business strategies are crucial for the company's growth and profitability.

It is difficult to determine an exact customer complaint rate for Essity company in recent years as the company does not publicly report this information. However, there have been some notable trends and issues related to customer complaints for Essity.
One notable issue has been the recall of Essity’s Tork paper towel products in the United States in 2019. The company received reports of the paper towels unraveling or falling apart during use, leading to customer complaints and a recall of the affected products.
In terms of overall trends, the company has faced some criticism for its sustainability practices and its use of plastic in its products, leading to some customer complaints and concerns. In response, Essity has committed to increasing its use of sustainable materials and reducing its environmental impact.
In addition, the COVID-19 pandemic has also led to an increase in customer complaints for Essity, particularly related to supply and availability issues for the company’s hygiene and healthcare products. The company has responded by ramping up production and implementing measures to ensure more consistent availability of its products.
Overall, while there is no specific data on customer complaint rates, it appears that Essity has faced some challenges and issues related to customer complaints in recent years, particularly in the areas of product quality, sustainability, and supply chain disruptions. The company has taken steps to address these concerns and improve its practices in these areas.

The Essity company's customer base includes a wide range of customers from various industries, including healthcare, personal care, and consumer goods. Some of their major customers include hospitals, nursing homes, retailers, and individuals.
As a global company, Essity serves customers in over 150 countries, with a diverse customer base in each region.
In terms of customer concentration risks, Essity does not rely heavily on any single customer or market. They have a well-diversified customer base, reducing the risk of dependence on any one customer or group of customers. Additionally, they have a strong portfolio of brands and products, which further diversifies their customer base and reduces customer concentration risks.

Essity has a conservative approach to hedging and the use of financial instruments. The company’s primary objective is to minimize financial risk and volatility, rather than to speculate for potential gain. Essity’s hedging policy is based on the principles of diversification, active management, and risk mitigation.
The company uses a variety of financial instruments, such as forward contracts, options, and swaps, to manage foreign exchange risk, interest rate risk, credit risk, and commodity price risk. These instruments are only used for risk management purposes and not for trading or speculative purposes.
Essity employs both internal hedging strategies, managed by its treasury department, and external hedging strategies, working with external financial service providers. Decisions regarding hedging activities are made on a case-by-case basis, taking into consideration the company’s long-term financial goals and operational needs.
Overall, Essity’s approach to hedging and financial instruments is cautious and focused on the company’s long-term financial stability and sustainability.

Essity’s communication strategy during crises is centered around transparency, timely and accurate information delivery, and empathy towards those affected by the crisis.
1. Transparency: Essity believes in being open and honest during a crisis, providing clear and accurate information to all stakeholders. This includes sharing information about the crisis and its impact on the company, its employees, customers, and other stakeholders.
2. Timely and accurate information delivery: Essity understands the importance of communicating promptly and with accuracy during a crisis. The company ensures that all communication is fact-checked and that updates are provided on a timely basis to keep stakeholders informed and engaged.
3. Multichannel approach: Essity utilizes various communication channels, including traditional media, social media, and its corporate website, to reach a wider audience and engage with them during a crisis.
4. Employee communication: Essity recognizes its employees as critical stakeholders during a crisis and makes sure to communicate with them clearly and regularly. The company provides information about steps being taken to address the crisis and any potential impact on their jobs, as well as offering support and resources for their well-being.
5. Crisis preparedness: Essity believes in being proactive and having a crisis management plan in place to deal with potential crises. This plan includes guidelines for communication strategies during different types of crises and identifies key spokespersons who will handle communication with the media and other stakeholders.
6. Empathy and human touch: Essity understands the impact of a crisis on people and communities, and it strives to communicate with empathy and a human touch. This includes acknowledging the challenges faced by those affected by the crisis and offering support and assistance when possible.
7. Stakeholder engagement: Essity engages with its stakeholders and listens to their concerns during a crisis. The company encourages open communication and feedback from stakeholders and takes necessary actions to address their concerns and needs.
In conclusion, Essity’s communication strategy during crises focuses on transparency, timely and accurate information delivery, a multichannel approach, employee communication, crisis preparedness, empathy, and stakeholder engagement. These elements combined aim to maintain trust and confidence in the company, effectively manage the crisis, and minimize its impact on all stakeholders.

Essity is a global hygiene and health company that is committed to creating value for stakeholders while ensuring long-term stability and sustainability. As such, the company has developed a robust contingency plan to address economic downturns and mitigate their impact on the company’s operations.
1. Diversified portfolio: Essity has a diversified product portfolio, catering to various sectors like consumer tissue, professional hygiene, and personal care. This diversification reduces the company’s reliance on one particular sector, making it more resilient during economic downturns.
2. Cost optimization: To prepare for economic downturns, Essity continuously monitors its costs and eliminates inefficiencies in its operations. This allows the company to maintain profitability during tough times and protect its financial position.
3. Strong financial position: Essity has a strong financial position with a solid balance sheet and access to multiple sources of funding. This provides the company with financial flexibility to weather economic downturns and seize growth opportunities when they arise.
4. Adaptability and innovation: Essity is continuously monitoring customer needs and market trends to be able to adapt quickly to changing conditions. The company also invests in research and development to innovate new products and solutions that can cater to the changing needs of consumers during economic downturns.
5. Cost-effective marketing and sales efforts: During economic downturns, Essity focuses on cost-effective marketing and sales efforts to optimize its return on investment. This includes leveraging digital channels, targeted marketing, and reducing unnecessary expenses.
6. Focus on essential products: In times of economic downturn, consumers tend to prioritize essential products like personal hygiene and healthcare. Essity has a strong portfolio of such products, minimizing the impact of economic downturns on its overall sales and profitability.
7. Scenario planning: Essity conducts regular scenario planning to anticipate and prepare for potential economic downturns. This enables the company to have a proactive approach to managing risks and identifying opportunities during tough times.
8. Employee support: During economic downturns, Essity recognizes the importance of supporting its employees and maintaining their well-being. The company provides training, coaching, and other resources to help employees adapt and stay productive during challenging times.
In summary, Essity’s contingency plan for economic downturns focuses on financial stability, adaptability, and innovation, cost optimization, and supporting its employees. This approach has allowed the company to successfully navigate through past economic downturns and emerge stronger.

Essity is a global company with operations in over 150 countries. As such, it is exposed to potential financial crises in various markets and regions around the world.
Some of the potential financial crises that could affect Essity include:
1. Economic downturns: A general economic downturn can impact Essity’s business by reducing consumer spending, increasing unemployment, and decreasing demand for its products.
2. Currency fluctuations: Essity operates in multiple countries and is exposed to fluctuations in currency exchange rates. This can affect its profitability and financial results.
3. Trade wars and tariffs: Trade conflicts and tariffs between countries can disrupt global supply chains and increase the cost of raw materials and products, ultimately impacting Essity’s financial performance.
4. Financial market instability: The company may be impacted by volatility in financial markets, including fluctuations in interest rates, stock prices, and foreign exchange rates.
5. Credit and liquidity risks: Essity may be affected by a lack of access to capital or credit, which could impact its ability to fund operations and investments.
6. Natural disasters and public health crises: Natural disasters such as hurricanes, earthquakes, and epidemics like COVID-19 can disrupt Essity’s operations and supply chains, leading to financial losses.
To mitigate these risks, Essity has a risk management program in place, which includes monitoring potential risks, implementing contingency plans, and diversifying its operations and supply chain. The company also maintains a strong financial position with a focus on liquidity and financial flexibility.

According to the most recent filings, as of June 30, 2021, institutional investors hold approximately 56.13% of shares in Essity. The largest institutional shareholder is the Swedish investment company, Investor AB, with a 24.19% stake. Other major institutional investors include BlackRock, Inc., Vanguard Group, Inc., and Norges Bank Investment Management.

The risk management strategy of Essity focuses on proactively identifying, assessing, and mitigating potential risks that could impact the company's operations, financial performance, and reputation. This includes both strategic and operational risks, such as market volatility, supply chain disruptions, regulatory changes, and natural disasters.
Essity's risk management approach is based on the principles of Enterprise Risk Management (ERM) and follows the guidelines set by the International Organization for Standardization (ISO). The company has a dedicated Risk Management Committee responsible for overseeing and guiding the risk management process.
The key elements of Essity's risk management strategy include the following:
1. Risk Identification: This involves continuously monitoring internal and external factors that could pose a risk to the company and its objectives. The company uses various tools and techniques such as risk workshops, surveys, and trend analysis to identify potential risks.
2. Risk Assessment: Once the risks are identified, they are assessed based on their likelihood and potential impact. The company uses a quantitative and qualitative approach to assess risks and prioritize them based on their severity.
3. Risk Mitigation: Essity adopts a proactive approach to mitigate risks by implementing appropriate controls, processes, and procedures. This includes diversifying suppliers, ensuring business continuity plans, and creating risk mitigation plans for critical risks.
4. Risk Monitoring and Reporting: The company regularly monitors and reviews its risks to identify any changes that may require additional actions. The Risk Management Committee reports on the status of identified risks to the Board of Directors on a quarterly basis.
5. Culture of Risk Awareness: Essity believes in creating a culture of risk awareness and accountability throughout the organization. This is achieved by providing training and resources to employees to identify and manage risks in their respective areas of work.
Overall, Essity's risk management strategy aims to minimize the potential impact of risks on the company's performance and ensure the sustainability of its operations. By continuously monitoring and managing risks, the company strives to enhance its resilience and create long-term value for its stakeholders.

1. Declining Sales: In recent years, Essity has faced declining sales and revenue due to changes in consumer behavior and increased competition in the personal care and hygiene market.
2. High Raw Material Costs: The company has been impacted by high costs of raw materials like pulp and oil, which have put pressure on its profit margins.
3. Global Economic Uncertainty: The ongoing trade wars and geopolitical tensions have led to economic uncertainty, affecting the company’s operations in different regions.
4. Environmental Concerns: The company has been facing increased scrutiny and pressure from consumers and regulators regarding the environmental impact of its products and packaging.
5. Digital Transformation: The rise of e-commerce and changing customer expectations have required Essity to invest in digital transformation, which has added to its costs.
6. Changing Demographics: Aging populations in developed countries have affected the company’s sales of personal care and hygiene products, leading to a need for innovation in its product portfolio.
7. Legal Issues: Essity has faced legal challenges and fines in several countries for anti-competitive behavior and environmental violations.
8. Supply Chain Disruptions: The company has been affected by supply chain disruptions and production challenges, leading to product shortages and delivery delays.
9. Labor Issues: The company has faced labor disputes and strikes in some of its production sites, affecting its operations and reputation.
10. Brand Image: Essity has faced challenges in maintaining a positive brand image due to controversies surrounding its products, such as allegations of using unethically sourced materials.

1. In 2017, Essity was involved in a patent infringement lawsuit with Georgia-Pacific LLC over their branded toilet paper products. Georgia-Pacific alleged that Essity’s product, Tork Advanced Bath Tissue, infringed on their patented design.
2. In 2018, Essity faced a class action lawsuit in the U.S. for falsely advertising their Cottonelle wet wipes as flushable. The plaintiffs claimed that the wipes caused plumbing problems when flushed and were misleadingly marketed as safe for sewer systems.
3. In 2019, Essity’s subsidiary, SCA Hygiene, was sued by several female employees for gender discrimination, unequal pay, and retaliation in a U.S. federal court. The lawsuit alleged that the company had a discriminatory promotion and salary system that favored male employees.
4. In the same year, Essity was also sued by the United Steelworkers union in Canada for unfair labor practices. The union claimed that Essity had engaged in anti-union activities and failed to bargain in good faith with employees at a tissue mill in Quebec.
5. In 2019, Essity’s brand Libero was involved in a lawsuit in China over alleged false advertising claims. A consumer advocacy group claimed that Libero falsely advertised their diapers as free of harmful substances, while tests showed the presence of potential carcinogens.
6. In 2020, a class action lawsuit was filed against Essity in Australia for their Sorbent toilet paper allegedly running out too quickly. The lawsuit claimed that the number of sheets advertised on the packaging was inaccurate, resulting in customers having to replace the roll more frequently.
7. In 2020, Essity was sued in Germany by environmental groups for misleading consumers with claims of using sustainable resources in their Tork paper products. The groups claimed that the company’s use of deforestation-linked sources did not align with their claims.

1. Fine for environmental violations in France (2015)
In 2015, Essity’s French subsidiary, SCA Hygiene Products, was fined 250,000 euros for violating environmental regulations. The company was accused of illegally discharging waste water into a river and failing to properly dispose of hazardous waste.
2. Allegations of tax evasion in Sweden (2016)
In 2016, Essity (known as SCA at the time) was accused of avoiding paying taxes in Sweden by transferring profits to low-tax jurisdictions. The Swedish tax authority launched an investigation, but no penalties or charges were announced.
3. Lawsuit over alleged deceptive marketing of feminine hygiene products (2017)
In 2017, a class-action lawsuit was filed against Essity and several other companies for allegedly engaging in deceptive marketing of feminine hygiene products. The suit claimed that the companies falsely advertised their products as being able to neutralize odor and protect against leaks.
4. Fine for anti-competitive practices in Romania (2018)
In 2018, the Romanian Competition Council fined Essity and three other tissue paper producers a total of 15.3 million euros for engaging in anti-competitive practices. The companies were found guilty of coordinating prices and market share in the toilet paper market.
5. Investigation by Swedish financial watchdog (2019)
In 2019, Sweden’s financial watchdog launched an investigation into Essity’s disclosures around its acquisition of the medical solutions company BSN medical. The investigation focused on whether Essity provided accurate information to investors about the financial impact of the acquisition.
6. Allegations of human rights abuses in Indonesia (2020)
In 2020, the activist group Mighty Earth released a report alleging that suppliers of Essity were involved in land grabbing, labor abuses, and deforestation in Indonesia. Essity announced that it would conduct an investigation into the allegations.
7. Antitrust investigation in South Africa (2021)
In 2021, South Africa’s Competition Commission initiated an investigation into Essity and two other companies for allegedly engaging in anti-competitive behavior in the tissue paper market. The investigation is ongoing and no penalties have been announced.

1. Acquisition of BSN medical (2017): In 2017, Essity completed the acquisition of BSN medical, a leading manufacturer of wound care and orthopedic products. This acquisition significantly expanded Essity’s presence in the medical solutions market and contributed to a significant increase in revenue and profits.
2. Spin-off from SCA (2017): In the same year, Essity also completed its spin-off from its parent company SCA, which resulted in Essity becoming an independent company listed on the stock market. This move allowed Essity to focus solely on its hygiene and health products and helped strengthen its financial position.
3. COVID-19 Pandemic (2020-2021): The global pandemic had a significant impact on Essity’s financial position. On one hand, the increased demand for hygiene and health products had a positive effect on sales and profits. On the other hand, disruptions in supply chains and increased costs due to safety measures negatively impacted the company’s financial performance.
4. Rising raw material costs (2018-2021): In recent years, Essity has faced a significant increase in raw material costs, particularly for pulp and other fibers used in its products. This has put pressure on the company’s margins and affected its profitability.
5. Expansion into emerging markets: Essity has been actively expanding its presence in emerging markets such as Asia, Latin America, and Africa in recent years. These regions have shown strong growth potential for the company and have contributed positively to its financial position.
6. Increased focus on sustainability: As a leading producer of hygiene and health products, Essity has made a concerted effort to improve its sustainability practices. This has involved investing in more sustainable production methods and product innovation, which has had an impact on the company’s financial performance.

1. Market Analysis: A business competing with Essity would first need to conduct a thorough market analysis to understand the company's strengths, weaknesses, market share, and the overall industry landscape. This would help the business identify potential areas of competition and develop a targeted strategy.
2. Product Differentiation: Essity is a large and diverse company, offering a wide range of products from tissue paper to feminine hygiene products. A competing business would need to differentiate its products from Essity's offerings to attract customers and gain a competitive edge.
3. Pricing Strategy: Essity is a global company with a strong brand name and established distribution channels. A competing business would need to develop a pricing strategy that can compete with Essity's competitive pricing while ensuring profitability for the business.
4. Supply Chain Management: Essity has a strong and complex supply chain network, allowing them to produce and distribute products efficiently. A competing business would need to establish a robust supply chain management system to streamline production and distribution processes and reduce costs.
5. Innovation and Research: Essity invests heavily in research and development to introduce new and innovative products to the market. A competing business would need to keep up with industry trends and invest in research and development to remain competitive and introduce new products and technologies.
6. Marketing and Branding: Essity has a strong brand presence and marketing strategy that helps them connect with customers globally. A competing business would need to develop a compelling marketing and branding strategy to attract and retain customers in a competitive market.
7. Recruiting and Retaining Talent: As a global company, Essity has a diverse and highly skilled workforce. A competing business would need to invest in recruiting and retaining top talent to develop innovative products and stay ahead of the competition.
8. Financial Management: Essity is a financially stable company with strong revenues and profits. A competing business would need to manage its finances efficiently to stay competitive and potentially attract investors or partnerships to finance growth and expansion.
9. Strategic Partnerships: Essity has established strategic partnerships to expand its product offerings and global reach. A competing business would need to form partnerships with complementary companies to gain a competitive advantage and expand its market share.
10. Legal and Regulatory Challenges: Essity operates in various countries and is subject to different legal and regulatory frameworks. A competing business would need to ensure compliance with laws and regulations to avoid any legal challenges or penalties that could harm its growth and reputation.

Essity partners with a wide range of companies and organizations in various industries. Some of their key partners and alliances include:
1. Suppliers – Essity works closely with suppliers to ensure the quality, availability, and sustainability of the raw materials used in their products.
2. Retailers – The company partners with retailers to distribute their products to consumers around the world. This includes both physical and online retailers.
3. Healthcare Organizations – Essity collaborates with healthcare organizations to provide solutions and products for healthcare facilities, professionals, and patients.
4. Non-Governmental Organizations (NGOs) – The company works with NGOs to address sustainable development challenges and social issues in different communities.
5. Trade Associations – Essity is a member of various trade associations, such as the World Toilet Organization and the National Association for Continence, to support industry initiatives and promote best practices.
6. Technology Partners – The company partners with technology companies to enhance its digital capabilities and develop innovative products and solutions.
7. Academic and Research Institutions – Essity collaborates with academic and research institutions to drive innovation, sustainability, and knowledge sharing.
8. Joint Ventures – The company has joint ventures with other companies to expand its product offerings and enter new markets.
9. Sporting Organizations – As a major sponsor of sporting events and teams, Essity partners with various sporting organizations to promote health, wellness, and hygiene.
10. Advocacy Groups – Essity works with advocacy groups to promote awareness and drive positive change in areas such as hygiene, health, and sustainability.

1. Disruption in supply chain: Any disruptions in the company's supply chain, such as delayed raw material deliveries or transportation issues, can result in production delays and lower revenue.
2. Decrease in demand for personal hygiene products: As hygiene habits and norms change, there may be a decrease in demand for personal hygiene products, which Essity is heavily reliant on.
3. Increased competition: Essity operates in a highly competitive market and faces competition from both established players and new entrants. Increased competition can lead to a decrease in market share and revenue.
4. Lack of innovation: Failure to innovate and keep up with changing consumer preferences and trends in the industry can result in a decline in product relevance and sales.
5. Rising costs: Fluctuations in currency exchange rates and increases in the cost of raw materials and production can lead to higher expenses for Essity, cutting into profits.
6. Negative public perception: Essity's business involves the production of disposable products, which can contribute to negative environmental impact. A growing concern for sustainability and eco-friendliness can lead to a backlash from consumers and damage the company's reputation.
7. Litigation and product recalls: In the event of defective products or customer complaints, Essity may face costly lawsuits and product recalls, impacting the company's finances and brand perception.
8. Economic downturn: A recession or economic downturn can result in decreased consumer spending, leading to a decline in demand for Essity's products.
9. Failure to adapt to digitalization: With the increasing use of e-commerce and digital platforms, failure to adapt to the changing landscape can put Essity at a disadvantage compared to competitors.
10. Failure to divest non-profitable business units: If Essity fails to divest underperforming or non-core business units, it may drain the company's resources and affect profitability in the long run.

1. Established Brand and Reputation: Essity is a well-established company with a strong brand and reputation. It has been in the market for over a century and has built a loyal customer base globally. This makes it difficult for new competitors to enter and gain a foothold in the market.
2. Wide Range of Products: Essity offers a wide range of products in the personal care and hygiene segment, from diapers and feminine care products to tissue and hand hygiene solutions. This diversified product portfolio makes it challenging for competitors to match their offerings and compete effectively.
3. Strong Distribution Network: Essity has a strong and established distribution network, which ensures that their products are available in a wide range of locations worldwide. This gives them an edge over new competitors who may struggle to build a similar network.
4. Research and Development: Essity invests extensively in research and development, constantly innovating and improving their products to meet changing consumer needs. As a result, they have a constant stream of new and improved products, making it challenging for competitors to keep up.
5. Economies of Scale: Being a large company, Essity enjoys economies of scale, which helps them to reduce production costs and offer competitive prices. This gives them an advantage over smaller competitors who may struggle to match their prices.
6. Strong Financial Position: Essity is a financially stable company with a strong balance sheet. This enables them to invest in new technologies, expand their business, and withstand potential economic downturns. This makes it difficult for new or smaller competitors to compete with them on the same level.
7. Established Customer Relationships: Essity has developed strong and long-lasting relationships with their customers over the years. This makes it challenging for competitors to lure away their customers, especially in markets where brand loyalty is high.
8. Regulatory and Quality Standards: The personal care and hygiene segment is subject to strict regulatory and quality standards. Essity has been able to comply with these standards, ensuring the safety and quality of their products. This serves as a barrier for competitors who may struggle to meet these requirements.
9. Sustainable Practices and Corporate Social Responsibility: Essity is committed to sustainability and corporate social responsibility, which is becoming increasingly important for consumers. Their focus on environmentally-friendly and socially responsible practices gives them a competitive edge and makes it challenging for competitors to replicate.
10. Strong Management and Organizational Culture: The success of Essity can be attributed in part to its strong management and organizational culture. This has helped them to develop a competent and motivated workforce, driving innovation and growth. This makes it difficult for competitors to match their level of expertise and company culture.

Founding and growing a successful business requires a combination of factors, and simply having capital is not enough to guarantee success or beat an established company like Essity. Factors such as a unique and innovative product or service, a strong business plan and strategy, a skilled and dedicated team, effective marketing and branding, and a thorough understanding of the market and competition are all crucial for a company to succeed. Additionally, it takes time and effort to establish a strong customer base and gain a competitive advantage in the industry. Therefore, it may not be easy for a new company with just capital to beat an established company like Essity.