DIVERSEY ANNOUNCES GLOBAL ENERGY SURCHARGE
Diversey Holdings, Ltd. (NASDAQ: DSEY) announced an energy surcharge effective April 15, 2022, ranging from 8% to 15% to offset rising energy, gas, and oil prices. The increase is necessary due to inflated costs resulting from high energy prices affecting raw materials and manufacturing processes. Diversey is implementing measures such as energy reduction in operations and inventory optimization to mitigate these effects. The company aims to support its customers with cost management strategies, ensuring smooth operations and adherence to its mission in hygiene and infection prevention.
- Diversey is implementing measures to mitigate rising costs, including energy reduction and supply chain optimization.
- The surcharge aligns with industry standards, indicating that the company is taking necessary steps to remain competitive.
- The implementation of an energy surcharge may lead to decreased customer demand due to higher service costs.
- The ongoing inflation and energy price surge could negatively impact profit margins in the near term.
FORT MILL, S.C., March 23, 2022 /PRNewswire/ -- Diversey Holdings, Ltd. (NASDAQ: DSEY) a leading provider of hygiene, infection prevention and cleaning solutions, announces its plan to apply an additional price supplement in the form of an energy surcharge that will be effective for all deliveries from Friday 15th April 2022.
The percentage supplement, which has become necessary in order to partially offset incremental inflation and the significant rise in energy, gas and oil prices, ranges from
A significant proportion of the raw materials and manufacturing for Diversey's portfolio are by-products of energy intensive processes. The impact of high energy costs and reduced output in these industries has resulted in significantly inflated costs for many businesses including Diversey.
In light of this, Diversey has taken several measures to mitigate the adverse effects, including reducing the use of energy in daily operations, optimizing supply chain, holding higher inventory, and refining the portfolio.
Similarly, Diversey has also taken steps to help its customers manage their energy costs for example through low temperature washing, management information systems, concentrated products and dispensing systems, which offer insights into the usage of energy, in order to identify real savings.
Given the scale of the cost increases, Diversey now needs to implement this surcharge to counter the net effect of the energy surge and the mitigation actions, consistent with others in the industry.
As a critical partner in hygiene, Diversey remains committed to ensuring that its business operations and those of its customers continue to run smoothly without disruption, consistent with its organizational mission.
About Diversey
Diversey's mission is to protect and care for people through leading hygiene, infection prevention, and cleaning solutions. We develop and deliver innovative products, services, and technologies that save lives and protect our environment. Over the course of 95 years, the Diversey brand has become synonymous with product quality, service, and innovation.
For more information, visit www.diversey.com or follow us on LinkedIn, Facebook, or Twitter @diversey.
View original content:https://www.prnewswire.com/news-releases/diversey-announces-global-energy-surcharge-301508857.html
SOURCE Diversey
FAQ
Why is Diversey implementing an energy surcharge?
When will the energy surcharge take effect for Diversey?
What percentage range will the energy surcharge be for Diversey?
How is Diversey addressing rising energy costs?
What is the stock symbol for Diversey?
