“France, the toughest market for big brands”

Magnus Groth, CEO of Essity Essity

INTERVIEW – The boss of Essity explains why manufacturers of consumer products cannot lower prices.

According to the boss of the Swedish hygiene products giant (Lotus, Okay, Nana, Tena, Demak’Up), the uncertainties are too high to consider price reductions.

LE FIGARO. – Energy and commodity prices are falling. Will manufacturers be able to p it on in their prices?

Magnus Groth. – You have to put things in perspective. Last year, the rise in the costs of energy, raw materials and transport was the strongest we have ever seen. At Essity, this represented 2.6 billion euros in additional costs, an amount greater than our profits the previous year (1.2 billion). We had to compensate to avoid losses. Admittedly, these costs have been falling since April, but only in comparison with the first quarter, when they were at their highest.

Read alsoWho are the real inflation losers in France?

Our energy and raw material costs remain at unprecedented levels, much higher than a year ago. In addition, gas and electricity prices on the spot markets…

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