Essity to Sell Its Operations in Russia

In 2022, Essity's net sales in Russia amounted to approximately 2% of the Group's total net sales.

June 12, 2023 - Essity announced that it has entered into an agreement for the sale of its operations in Russia.

Essity said that it has signed an agreement with a buyer and the transaction has now been approved by the Russian authorities. The transaction is expected to be finalized during the second quarter of 2023.

Essity began work in April 2022 to exit the Russian market and in 2022 an impairment was carried out of the company's assets in Russia of approximately SEK 1.7 billion.

In 2022, Essity's net sales in Russia amounted to approximately 2% of the Group's total net sales.

The total earnings impact will be reported when the transaction is finalized, but is not expected to have a material financial impact.

According to a report published in 2022 by Interfax, Essity has three factories in Russia. It acquired a factory to produce sanitary and hygienic products in Svetogorsk in the Leningrad region in 1998. Today the factory produces an assortment of paper products for the brands Zewa and Tork.

In addition, two factories were opened in the Tula region in 2010, one in Sovetsk where paper products for the brands Zewa and Tork are produced and the other in Venyov where personal hygiene products are produced, including diapers for children for the brand Libero, adult diapers for the brand Tena, and Libresse sanitary pads.

Headquartered in Stockholm, Sweden, Essity is a global producer of consumer tissue, professional and personal hygiene and health products.

SOURCE: Essity