contentSlug

type

ContentSlug_ContentQuery

slug

ContentPageContentQuery

content

trendingContent

query ContentSlug_ContentQuery(
  $contentSlug: String!
  $type: [ContentType!]
) {
  ...ContentPageContentQuery_13QmVO
}

fragment CompanyDetails_Content on Content {
  __isContent: __typename
  companies {
    name
    description
    pageUrl
    id
  }
}

fragment ContentBasicInfo on Content {
  __isContent: __typename
  id
  type
  title
  lang
  companies {
    viewerIsFollowing
    id
    name
    pageUrl
  }
  tags {
    viewerIsFollowing
    id
    name
    pageUrl
  }
  ...PublishingDetails
  ...Reactions
}

fragment ContentMetadata on Content {
  __isContent: __typename
  type
  title
  lang
  pageUrl
  alternatePageUrls: translations {
    __typename
    pageUrl
    lang
  }
  imgUrl
  description
  createdAt
  changedAt
  isPremium
  authors {
    __typename
    name
    pageUrl
    id
  }
  companies {
    name
    id
  }
  tags {
    name
    id
  }
  ... on Video {
    liveTime
    videoUrl
  }
  ... on Webcast {
    liveTime
    videoUrl
  }
}

fragment ContentPageContentQuery_13QmVO on Query {
  content(slug: $contentSlug, type: $type) {
    __typename
    id
    type
    title
    isPremium
    lang
    htmlBody
    summary
    companies {
      forum {
        latestPosts {
          ...ForumPosts
        }
      }
      name
      id
      viewerIsFollowing
      pageUrl
      defaultInstrument {
        isin
        id
        marketOpen
        marketClose
        marketplace {
          region
        }
        returns {
          total
        }
      }
    }
    tags {
      viewerIsFollowing
      id
      name
      pageUrl
    }
    createdAt
    ... on Video {
      liveTime
    }
    ... on Webcast {
      liveTime
    }
    slug
    ... on CompanyReport {
      reportUrl
      researchContentUrl
    }
    ... on ThirdPartyCompanyReport {
      reportUrl
    }
    ... on StockExchangeRelease {
      reportUrl
    }
    ...ContentBasicInfo
    ...ContentMetadata
    ...PriceAndRecommendation_Content
    ...CompanyDetails_Content
    ...ReportLink_Content
    ...KeyFigures_Content
  }
  ...TrendingContent_1jQ2Cn
}

fragment ForumPosts on ForumPost {
  text
  likesCount
  url
  author
  postedAt
  authorImgUrl
}

fragment KeyFigures_Content on Content {
  __isContent: __typename
  companies {
    defaultInstrument {
      estimateData {
        modelType
        reportingCurrency
      }
      snapshot {
        transaction {
          date
          actualized {
            year
            quarter
            revenue
            revenueGrowth
            ebitAdjusted
            ebitReported
            ebitda
            enterpriseValue
            epsAdjusted
            dividend
            dividendYield
            sharePrice
            nav
            navPerShare
            opexOfNav
            quarterlySharePrice
          }
          estimates {
            year
            quarter
            revenue
            revenueGrowth
            ebitAdjusted
            ebitReported
            ebitda
            enterpriseValue
            epsAdjusted
            dividend
            dividendYield
            sharePrice
            nav
            navPerShare
            opexOfNav
            quarterlySharePrice
          }
        }
      }
      id
    }
    id
  }
}

fragment PriceAndRecommendation_Content on Content {
  __isContent: __typename
  createdAt
  companies {
    name
    pageUrl
    defaultInstrument {
      priceData {
        tradeCurrency
      }
      snapshot {
        priceData {
          date
          lastPrice
          tradeCurrency
        }
        transaction {
          date
          recommendation
          targetPrice
        }
        prevTransaction {
          recommendation
        }
      }
      id
    }
    id
  }
}

fragment PublishingDetails on Content {
  __isContent: __typename
  createdAt
  publishers {
    name
    imgUrl
  }
  authors {
    __typename
    id
    name
    slug
    imgUrl
    jobTitle
  }
  ... on Video {
    liveTime
  }
  ... on Webcast {
    liveTime
  }
}

fragment Reactions on Content {
  __isContent: __typename
  id
  reactionGroups {
    reactionType
    reactionsCount
    viewerReacted
  }
}

fragment ReportLink_Content on Content {
  __isContent: __typename
  type
  isPremium
  ... on CompanyReport {
    reportUrl
  }
  ... on ThirdPartyCompanyReport {
    reportUrl
  }
  ... on StockExchangeRelease {
    reportUrl
  }
}

fragment TrendingContent_1jQ2Cn on Query {
  trendingContent(type: ARTICLE) {
    __typename
    id
    title
    lang
    pageUrl
    createdAt
    type
    imgUrl
    companies {
      squareLogoUrl
      name
      id
    }
    authors {
      __typename
      imgUrl
      id
    }
    publishers {
      imgUrl
    }
  }
}


essity-acquires-modibodi-a-leading-leakproof-apparel-company

__typename

title

isPremium

lang

htmlBody

summary

companies

createdAt

publishers

authors

reactionGroups

pageUrl

translations

imgUrl

description

changedAt

Essity operates in the hygiene and health industry and focuses on the development, manufacturing and distribution of products within personal care, incontinence and medical care. The company's products are aimed at private individuals and healthcare institutions. The operations are global with a main presence in Europe, North America and Asia. Essity was founded in 2017 and is headquartered in Stockholm, Sweden.

Let’s continue the almost dead discussion about a quality company. Essity has continued its steady progress. The dividend is growing again and the balance sheet keeps improving. The company is starting to have the strength to either buy back more of its own shares or embark on complementary acquisitions. I would definitely consider it among the best Nordic companies. A deadly boring and profitable company. The strategy to grow from traditional bulk products to higher value-added products has worked. For example, the Health & Medical segment achieved an 18% EBITA margin, which I would consider excellent.

Essity is a quality company that is boring in a good way, so its news/releases aren’t really followed in real-time. On March 4, it was announced that authorities have approved the sale of the Vinda stake to the bidder. Essity will receive the previously announced 19bn SEK from the sale.                   essity.com              Regulatory approvals granted for the public offer in Essity's subsidiary Vinda    Today, Isola Castle Ltd, together with Vinda International Holdings Limited (Vinda), announced that the required regulatory approvals for the public offer for the shares in Vinda have been obtained. Link to the press release: http[...]                             And the dividend (7.75 SEK) goes ex-dividend on Friday, March 22.

Essity has very high-quality businesses. The company went public at a valuation that was a bit too high, but the valuation has now settled at reasonable levels. If growth continues, the company’s value should catch up at some point. I would consider it a company with a similar growth profile to Huhtamäki. No major dividend yield as a starting point, but a fairly significant growth option that has been well-realized historically. Personally, I like companies where the product portfolio remains relatively similar from year to year. It’s nice to build a compounding effect on something that doesn’t need to be reinvented every year. In Essity’s case, we saw how the consumer ultimately pays for inflation and that strong companies have pricing power.

Much has happened since the last post. Over the past three years, Essity has diversified by making numerous acquisitions: 2021  -Full acquisition of ABIGO Medical and Asaleo Care (previously partial ownership).  -Ownership stake in Productos Familia S.A. was increased to 95.8%.  -Acquired sports tape brands Coach, Elastikon, and Zonas from Johnson & Johnson.  -Acquisition of AquaCast Liner, a manufacturer of waterproof cast liners.  -Acquisition of wound care company Hydrofera. 2022  -Acquisition of Legacy Converting, Inc., a wiping products company.  -Acquisition of Modibodi, a leakproof apparel company.  -Acquisition of Knix Wear Inc., a leakproof apparel company. There have also been divestments. Essity sold its Russian operations in 2023. I wonder if peers KMB and PG have done so yet? The most recent divestment is the sale of the Hong Kong-listed subsidiary Vinda. Essity has owned approximately 50% of Vinda. As I understand it, the tender offer is still awaiting final approval, but if completed, it will bring 19bn SEK into the company’s coffers. The image of Essity is still easily associated with Lotus, Tena, or Libero. The company’s strategy has been to reduce the share of the toilet paper and diaper business and increase higher-margin new products, mainly through acquisitions. If you consider Kimberly-Clark or P&G too expensive at the moment, Essity is starting to be a noteworthy “hold” stock with significantly more attractive valuation multiples and a reasonable debt profile. ROCE according to the 2023 financial statements was 14.4%. The dividend was increased and is 7.75 SEK. 2023  • Net sales increased 12.1% to SEK 147,147m (131,320). Sales growth, including organic sales growth and  acquisitions, amounted to 6.7%, of which volume accounted for -3.7%, price/mix for 9.5% and acquisitions  for 0.9%.  • Operating profit before amortization of acquisition-related intangible assets (EBITA) increased 68% to SEK 16,607m (9,876)  • Adjusted EBITA increased 57% to SEK 18,898m (12,047) and the adjusted EBITA margin increased 3.6 percentage points to 12.8% (9.2)  • Profit for the period continuing operations increased 84% to SEK 9,517m (5,165)  • Earnings per share continuing operations increased to SEK 13.44 (7.28) and adjusted earnings per share continuing operations increased 51% to SEK 17.56 (11.60)  • Operating cash flow increased 130% to SEK 17,685m (7,680)  • Return on capital employed increased to 14.4% (8.9) and the adjusted return on capital employed increased 5.5 percentage points to 16.4% (10.9)                   essity.com              About our brands | Essity    Essity sells under the leading global brands TENA and Tork, and other strong brands, such as Jobst, Leukoplast, Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa.                                        masdpstatic.azureedge.net              Essity_Year-endReport2023_ENG.pdf    1296.66 KB                                              essity.com              Acquisitions and Divestments

Essity will have a couple of rough quartals ahead of them. That is given, due to lockdowns and costs concerns driven by mass price increases. But that said, Essity is doing everything right, and if I want to be in this space I prefer Essity over KMB, which is heavily in debt (as it uses the American way to boost it share price by spending way to much money on share buy backs). I am bullish on the long-term view of Essity. But owning Essity as you indicated requires patience, which is hard to find among investors these days. edit: I do like that Essity pursues (‘small’) bolt-on acquisitions, rather than big, as these usually do not have a favorable outcome (especially) for the buyer.

Any thoughts about the Q1 report and acquisitions? For me the company seems interesting and boring at the same time  Kind of worrying that sales are way lower than Q1 2019. 2020 is naturally a tough comparison.

Essity is by its nature a ‘boring’ company. But for me its one of the best quality companies in the Nordics (I am a value, long-term investor.) If you have a long-term time horizon and have the patience to wait owning this share it will eventually prove to be successful. The short term catalyst: the end of the worldwide corona lockdowns, which will increase the use of Essity products (in airports, in hotels, restaurants, schools etc). Corona will create more awareness of hygiene products. Here the strong Essity brands will prosper. The long-term catalyst is the fact that people in the western (rich) socities are living longer and will drive the demand of Essity related products.

Essity

Leakproof apparel has an expected annual growth rate of more than 20% for the next five years*. Essity is already active in the leakproof apparel market within Feminine Care with brands such...

Leakproof apparel has an expected annual growth rate of more than 20% for the next five years*. Essity is already active in the leakproof apparel market within Feminine Care with brands such as Libresse, Bodyform, Saba and TOM Organic, and within Incontinence Products with the TENA brand."The acquisition of Modibodi strengthens Essity's position in leakproof apparel and enables faster growth within better-for-you, better-for-the-planet solutions. Modibodi has the qualities we are looking for with leading market positions, strong brand and sustainability credentials as well as excellent digital marketing and e-commerce capabilities", says Magnus Groth, President and CEO of Essity.Modibodi, founded in 2013, provides leakproof apparel for periods and incontinence including underwear, swimwear, activewear and maternity wear. The company operates an online, direct-to-consumer business model, with growing sales in retail and through e-tailers.In 2021, the company reported net sales of AUD 56.7m (approximately SEK 365m) and a sales growth of 18%. The EBITDA amounted to AUD 5.7m (approximately SEK 36m) and EBITA to AUD 5.6m (approximately SEK 36m). Gross margin was high and EBITA margin amounted to 9.8%. Modibodi has 45 employees and headquarter in Sydney, Australia."I am proud of all we have created at Modibodi over the past nine years and pleased that Modibodi is joining Essity. As a global leader in hygiene and health, Essity can provide the expertise and capital to take the brand forward during its next phase of growth, and achieve even greater impact", says Kristy Chong, founder and CEO of Modibodi. &nbsp;The transaction is expected to be finalized in the second half of 2022.*Market data has been compiled by Essity based on data taken from external market sources and excludes Asia.