Essity AB (publ)
STO:ESSITY B

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Essity AB (publ) Logo
Essity AB (publ)
STO:ESSITY B
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Price: 261.4 SEK 0.42% Market Closed
Market Cap: 181.2B SEK

Essity AB (publ)
Investor Relations

Essity AB (publ), a global hygiene and health company headquartered in Stockholm, Sweden, has carved out a pivotal role in improving well-being for millions. Born out of the restructuring of the industrial giant SCA Group in 2017, Essity has grown to become one of the leading players in hygiene and health products. The company focuses its operations in three core areas: personal care, consumer tissue, and professional hygiene. This diversity in product offerings allows Essity to cater to a wide audience, from individual consumers to businesses and healthcare institutions.

Essity’s robust revenue model is built on its brand portfolio, featuring well-known names like TENA and Tork, which command significant market share and customer loyalty. Through a well-established network, the company delivers products that range from incontinence aids and baby diapers to tissue paper and professional cleaning solutions. With a strategic emphasis on sustainability and circular economy principles, Essity not only fulfills everyday needs but also aligns with global trends for environmentally responsible business practices. By leveraging advanced research and development, Essity ensures it stays at the forefront of innovation, enhancing both its profitability and its impact on public well-being.

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ESSITY B
OMX Stockholm 30
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Last Earnings Call
Fiscal Period
Q1 2025
Call Date
Apr 24, 2025
AI Summary
Q1 2025

Solid Start: Essity delivered a stable Q1 2025 with higher sales, strong cash flow, and positive organic growth across all business areas.

Margins & COGS: Margins were pressured by higher raw material costs, particularly pulp, though price increases helped offset most of this headwind. Management expects COGS to remain stable sequentially in Q2.

Share Buyback: Announced a new SEK 3 billion share buyback program, intended as a recurring capital allocation tool.

Limited Tariff Impact: Current tariffs are expected to have limited impact on the business due to local production and sourcing.

Volume Trends: Volumes were flat overall with growth in high-margin categories like medical, feminine, and retail incontinence, but softness in baby care and Professional Hygiene North America.

Cost Focus: SG&A increased mainly due to salary inflation and IT spend; cost savings are expected to accelerate through the year.

Guidance Maintained: Cost savings and higher A&P spending targets for the year remain unchanged.

Key Financials
Health & Medical Organic Growth
1.7%
Consumer Goods Organic Growth
almost 3%
Professional Hygiene Organic Growth
0.7%
Professional Hygiene Volume
-3.6%
Professional Hygiene Price/Mix
4.3%
Consumer Tissue Growth
2.7%
Baby Care Sales Decline
-6.5%
Group Pricing
2.1%
Total Growth (including FX)
0.4%
Consumer Goods Margin Sequential Change
up 170 bps
Consumer Goods Margin YoY Change
down 50 bps
Professional Hygiene Margin YoY Change
up 80 bps
Net Debt
close to SEK 27 billion
Net Debt to EBITDA
about 1
Shares Repurchased in Q1
SEK 775 million
New Share Buyback Program
SEK 3 billion
COGS Increase in Q1
SEK 610 million
Raw Material Cost Increase
about SEK 600 million
Cost Savings in Q1
SEK 82 million
A&P Spending (YoY Change)
down 30 bps YoY
SG&A as % of Sales (YoY Change)
up 50 bps
Product Superiority in Branded Sales
71%
Other Earnings Calls

Management

Mr. Magnus Groth MBA, ME, MSc Econ
President, CEO & Director
No Bio Available
Mr. Carl Fredrik Stenson Rystedt B.Sc., MSc Econ.
CFO, Executive VP & Head of Group Function Finance
No Bio Available
Mr. Carl-Magnus Månsson
Chief Digital & Information Officer
No Bio Available
Ms. Sandra Åberg
VP & Head of Investor Relations
No Bio Available
Mr. Mikael Schmidt
SVP of Group Function Legal Affairs & Compliance, General Counsel and Secretary of the Board
No Bio Available
Ms. Jessica Alm
Chief Communication Officer
No Bio Available
Ms. Anna Savinger-Åslund B.Sc.
Chief Human Resource Officer
No Bio Available
Mr. Volker Zoller B.A., B.Sc.
President of Consumer Goods EMEA
No Bio Available
Mr. Pablo Fuentes M.B.A., M.Sc.
President of Professional Hygiene
No Bio Available
Mr. Donato Giorgio M.Sc.
President of Global Supply Chain
No Bio Available

Contacts

Address
STOCKHOLM
Stockholm
Klarabergsviadukten 63
Contacts
+468788514646.0
www.essity.com