Essity completes divestment of its shares in Vinda

"Essity is now in better shape than ever. Following the divestment of Vinda the categories with the highest margins and lowest capital intensity account for a larger part of the company. The company's pulp consumption has halved, and we have a more attractive portfolio with higher profitability and lower volatility. The transaction reduced Consumer Tissue's share of net sales in 2023 from 41% to 33%. We look forward to continuing to grow a portfolio of more value-generating categories," says Magnus Groth, President and CEO for Essity. Essity's ownership of 51.59% in Vinda had been consolidated to 100% by Essity since 2014. As of the fourth quarter of 2023, Essity has classified Vinda's financial reporting as discontinued operations. Vinda is listed on the Hong Kong Stock Exchange and had a market capitalization of approximately HKD 25bn (SEK 33bn) at the end of trading on December 14, 2023. 83% of Vinda's net sales were related to tissue and 17% to personal care products.

"Essity is now in better shape than ever. Following the divestment of Vinda the categories with the highest margins and lowest capital intensity account for a larger part of the company. The company's pulp consumption has halved, and we have a more attractive portfolio with higher profitability and lower volatility. The transaction reduced Consumer Tissue's share of net sales in 2023 from 41% to 33%. We look forward to continuing to grow a portfolio of more value-generating categories," says Magnus Groth, President and CEO for Essity.
 
Essity's ownership of 51.59% in Vinda had been consolidated to 100% by Essity since 2014. As of the fourth quarter of 2023, Essity has classified Vinda's financial reporting as discontinued operations. Vinda is listed on the Hong Kong Stock Exchange and had a market capitalization of approximately HKD 25bn (SEK 33bn) at the end of trading on December 14, 2023. 83% of Vinda's net sales were related to tissue and 17% to personal care products.

Essity has several legal opinions confirming that the divestment of the shares in Vinda does not constitute a 'cessation of business' under Essity's EMTN program. These opinions considered several qualitative and quantitative factors, such as the continued business with Vinda under licenses, etc. However, already the fact that Essity only owns 51.59% of the shares and sales account for 8.5% of Essity's total sales, means that the divestment of the shares does not qualify as 'cessation of business'.

CONTACT:

For further information, please contact:
Per Lorentz, Vice President Corporate Communications, +46 73 313 30 55, per.lorentz@essity.com
Sandra Åberg, Vice President Investor Relations, +46 70 564 96 89, sandra.aberg@essity.com

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