Tissue World Magazine | MarketIssues
PROFITABLE GROWTH IN THE CONSUMER TISSUE VALUE CHAIN – WHERE TO LOOK? Tissue producers are in a solid position, but the example of retailers expanding their private label offering shows genuine interest to incorporate margins currently generated in the upstream business. By AFRY Management Consulting’s Hampus Mörner, Manager, Christoph Euringer, Principal, and Tino Mäkelä, Analyst.
A
sk any Chief Executive or salesperson about their competitive advantage and you will hear very different accounts on why their company is the best, the superior, or at least the one with the best outlook going forward. Citing most value-add products, most efficient p oduction, best service level best
assets, etc. And within their individual sector, they might even be the leading company. But at the end of the day, there is a limited amount of money available in any value chain – and finally only the distribution of profits should be the litmus test of who is performing best.
ROCE in % (weighted average 2010-2022) 12.9
9.6 8.1
5.1
Machinery suppliers
Market pulp producers
Tissue manufacturers
Retailers
Figure 1: ROCE 2010-2022, weighted average (by turnover) per company group. European focus. AFRY analysis based on Orbis Bureau van Dijk data, 34 companies
4 | Jan/Feb
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12/01/2024 20:17
