Essity’s assets in Russia have been devalued by about $147 million, company head Magnus Groth said.
STOCKHOLM, April 22. /TASS/. Personal care products manufacturer Essity is withdrawing from Russia. The company announced this in a press release Friday.
“Essity’s conditions for doing business in Russia have deteriorated,” company head Magnus Groth stated in a commentary on its first quarter 2022 report. – As a result, the company’s assets in Russia were impaired by about SEK 1.4 billion ($147 million). In addition, work has begun to withdraw from the Russian market.
Essity’s sales in Russia last year were about SEK 2.8 billion (about $29.5 million), which is about 2% of its total volume in 2021.
Groth also warns of product price increases. “We have implemented significant price increases, and there will be further increases in the coming quarters. In addition, we have negotiated price increases with customers in Europe to offset steep increases in energy costs,” the press release said.
Essity makes toilet paper, paper towels and handkerchiefs, boxed wipes, wet and table cloths, face masks, as well as soaps, lotions, and antiseptic hand gels. The company started working in Russia in 1994, and today the Russian division has about 1,300 employees. The Russian market offers a range of hygiene products under the Zewa, Tork, Libero, Libresse and TENA brands. There are three Essity factories operating in the Russian Federation.