Essity’s Post

Essity - Chelonia Select Essity is one of our Top 10 holdings and remain a capital allocation opportunity. Following recent restructuring and repositioning, including exiting Vinda in March 2024, Essity has an improved product mix with less consumer tissue, halved exposure to volatile pulp markets and a much-strengthened capital structure. In June 2024, Essity also outlined new financial targets and the company now aims for an organic sales growth of more than 3% and an EBITA margin excl IAC of more than 15%. Also, importantly, the company announced it will start buying back own shares for the first time as a recurring part of capital allocation. In our view, higher and more stable margins are still to be fully recognised in the market’s perception, and the valuation discount compared with its closest peer Kimberly-Clark should close. Essity will host a Capital Markets Day (CMD) on 3 December. We see potential for a more ambitious margin target, but do not anticipate any revisions. Likely focus will be on management's commentary on how organic growth in excess of 3% can be achieved and sustained, how margins have reached a structurally higher level with less volatility and how capital allocation may develop in light of a decline in M&A appetite. Free cash flows significantly exceed dividends. Combined with Essity’s strong balance sheet, this raise the question of how Essity plans to allocate excess cash flows. We believe there will be a continuation and expansion of the buyback program at the 2025 AGM. Essity total return (close 26 Nov 2024): Ytd 2024: +24% Chelonia Select Equity L/S October: +2% Ytd 2024: +22% 12M: +28% Net Exposure Equities: 28% Gross Exposure Equities: 104% Disclaimer This is marketing communication. Information provided by Archipelago Investments shall not be considered as investment advice or recommendations. Past performance is no guarantee of future returns. The value of the capital invested in Chelonia Select may increase or decrease and investors in Chelonia Select cannot be certain of recovering all their invested capital. #equities #nordicequities #hedgenordic #essity

𝗛𝗲𝗮𝗹𝘁𝗵 𝗮𝗻𝗱 𝗛𝘆𝗴𝗶𝗲𝗻𝗲 𝗣𝗮𝗰𝗸𝗮𝗴𝗶𝗻𝗴 𝗠𝗮𝗿𝗸𝗲𝘁 𝟮𝟬𝟮𝟰-𝟮𝟬𝟯𝟬 𝗥𝗲𝘀𝗲𝗮𝗿𝗰𝗵 𝗥𝗲𝗽𝗼𝗿𝘁 This comprehensive report offers a detailed analysis of the global health and hygiene packaging market. It includes both quantitative and qualitative analyses, examining manufacturers, regions, countries, types, and applications. In light of the market's dynamic nature, the report explores competition, supply and demand trends, and key factors driving changing demands across various markets. Additionally, it features company profiles and product examples of selected competitors, alongside market share estimates for key industry leaders in 2024. 𝗧𝗼 𝗸𝗻𝗼𝘄 𝗛𝗲𝗮𝗹𝘁𝗵 𝗮𝗻𝗱 𝗛𝘆𝗴𝗶𝗲𝗻𝗲 𝗣𝗮𝗰𝗸𝗮𝗴𝗶𝗻𝗴 𝗠𝗮𝗿𝗸𝗲𝘁 𝟮𝟬𝟮𝟰 𝘁𝗼 𝟮𝟬𝟯𝟬 ,𝗥𝗲𝗾𝘂𝗲𝘀𝘁 𝗳𝗼𝗿 𝗦𝗮𝗺𝗽𝗹𝗲 𝗣𝗗𝗙:https://lnkd.in/gVEGVfXw *𝗕𝘆 𝗧𝘆𝗽𝗲:  Porous, Non Porous *𝗕𝘆 𝗔𝗽𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻: Medical Instruments, Drug *𝗕𝘆 𝗥𝗲𝗴𝗶𝗼𝗻: North America, Europe, Asia-Pacific, South America, Middle East & Africa *𝗕𝘆 𝗞𝗲𝘆 𝗣𝗹𝗮𝘆𝗲𝗿𝘀: Becton, Dickinson and Company, Owens & Minor, Inc., AptarGroup, Inc., Sealed Air Corporation, 3M Company, Catalent, Inc., Essentra plc, Huhtamaki Oyj, WestRock Company, Amcor plc, RPC Group Plc, Danaher Corporation, Flair Flexible Packaging Corporation, Mondi Group. #healthpackaging #hygienepackaging #packagingindustry #healthcare #hygiene #sustainability #healthandhygiene #packagingdesign #biodegradable #ecofriendly #healthyliving #productpackaging #safepackaging #healthcareindustry #cleanliness #environmentallyfriendly #healthylifestyle #hygieneproducts #packaginginnovation #recyclable #wellness #medicalpackaging #hygienic #greenpackaging #protectivepackaging #packagingtrends #healthcarepackaging #personalcare #packagingmaterials #healthandwellness

Have you secured your free spot for next week’s Marken webinar? Don’t miss your chance to hear from Chiara Venuti, Vice President of Global Drug Distribution, Marken, and Manu Jacobs Director of Specialty Products, United Cargo, on September 24 at 2:00-3:00pm (EST) as they discuss the unique challenges and opportunities presented at each stage of the supply chain, and the strategies that drive operational excellence and business growth in the dynamic landscape of clinical to commercial supply chain management. We look forward to seeing you there – Register for our complimentary webinar today to gain a better understanding of the critical factors influencing supply chain efficiency and effectiveness: https://lnkd.in/eppNq5Wp #Marken #SupplyChain #Challenges #TemperatureSenstive #Healthcare #MedicalProduct

I am excited to join DHL's annual Life Sciences & Healthcare event in Austria in the upcoming days. I am eager to engage in discussions surrounding the latest supply chain insights, strategies, and practical solutions that will enhance resilience in the Pharma & Healthcare supply chains. #DHL #Controlant #LifeSciences #Healthcare #SupplyChain

What marketing lesson is here for you? Continuous improvement and adaptation: Johnson & Johnson has evolved and adapted over time to meet changing healthcare needs and market dynamics. Brands should embrace a culture of continuous improvement, innovation, and adaptability to stay relevant and competitive in their respective industries. Some of them I have mentioned below. #JNJ #JohnsonAndJohnson #HealthcareUAE #MedicalResearch #UAEHealthcare #MarketResearchUAE #HealthcareIndustry #UAEPharma #ConsumerInsights #UAEHealthTrends

The first step to outperform in #ConsumerHealth is to finely understand the unique characteristics of each category and its key metrics across: > value at stake (size, growth, profitability) and > right to win (complexity, geographic & market share fragmentation, channel landscape & dynamics, premium for scale, barriers-to-entry, incumbents strengths & weaknesses, category success drivers & required capabilities Without a des-averaged strategy (where-to-play/ how-to-win choices & tailored enablers) across category/ segment & sometimes market landscape archetype, it is almost impossible to achieve outperformance on such a complex vertical as CHC To know more about our view on how to drive outperformance on CHC, see our last publication: FMCG CEOs: Breaking The Code Of Outperformance On Consumer Health Care (CHC), Key Winners & Losers And Seven Predictions Over 2024-2030 https://lnkd.in/eeCZYWmt To get all our insights, follow us & subscribe to our FMCG CEO Insights newsletter: https://lnkd.in/ea4gy65y #fmcg #cpg #consumerhealth #healthcare #strategy Frederic Fernandez & Associates Kenvue Bayer Haleon

Learn why consumer health brands rely on Catalent to scale up quickly and bring new products to market. Helping brands develop and accelerate chewable portfolio options to delight their consumers. Industry leading and experienced #Manufacturing, that is reliability supplied. It's definitely something to chew on. chew on. #NutritionalSupplements https://ow.ly/a11c50SU7kS

Scrubbing Up: Insights into the Soap Market Trends and Innovations Dive into the Sudsy World of Soap: Our latest report provides comprehensive insights into the soap market, uncovering trends, innovations, and strategic opportunities. Join us as we explore the dynamic landscape of soap production and consumption. For more information read the full report: bit.ly/49A7xw5 Some of the key players in the market are Procter & Gamble, Unilever, Henkel, Church & Dwight Co., Inc. Colgate-Palmolive, Reckitt, Ecolab, ITC Limited, Johnson & Johnson and many more. #marketresearchreports #news #latinamerica #marketoutlook #informesdeexpertos #ide #soapmarket #consumergoods #soap #health #growth

Learn why consumer health brands rely on Catalent to scale up quickly and bring new products to market. Helping brands develop and accelerate chewable portfolio options to delight their consumers. Industry leading and experienced #Manufacturing, that is reliability supplied. It's definitely something to chew on. chew on. #NutritionalSupplements https://ow.ly/a11c50SU7kS

M&A on #CHC: The lost decade? Given the current dynamics within CHC involving various key players, we anticipate an acceleration in M&A activity. To fully realize the potential of M&A in CHC, it’s time to improve in the following areas: i) Integrating all available M&A insights from the FMCG/CHC industry over the last 15 years ii) Thoroughly understanding their strategic framework (ownable strengths to leverage) iii) Formulating detailed M&A hypotheses (where-to-play/how-to-win choices) considering the necessary success drivers for each segment/market they aim to target iv) Identifying the right assets and conducting thorough due diligence v) Developing optimal value creation cases and corresponding integration models Exciting times ahead for M&A in CHC. More on these points in our latest publication: FMCG CEOs Breaking The Code Of Outperformance On Consumer Health Care CHC Key Winners Losers And Seven Predictions Over 2024-30: https://lnkd.in/eeCZYWmt To get the corresponding deck, please leave your name in the comments & allow us a few days. For all our insights follow us subscribe to our FMCG CEO Insights newsletter: https://lnkd.in/ea4gy65y #fmcg #cpg #healthcare #strategy #mergersandacquisitions Frederic Fernandez & Associates