Essity has exited the Russian market

The hygiene and health company Essity has completed the divestment of its operations in Russia for a purchase price of approximately SEK 1.2 billion on a cash and debt-free basis. Essity has thus exited Russia.

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 corresponded to about 2% of its total consolidated net sales.

The buyer is the company New Technologies LLC, with the principal owner Igor Shilov. The earnings impact, including accumulated currency translation differences, amounts to approximately SEK -0.5 billion and will be reported as an item affecting comparability in the third quarter of 2023.