Essity AB

ESSITY A

Equity

ISIN SE0009922156 / Valor 36846754

NASDAQ Nordic Exchange Stockholm, Equities (2026-10-02)

SEK 257.50+0.39%

Essity AB
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About company

Essity AB is a leading global hygiene and health company operating through three main segments: Professional Hygiene, Health & Medical, and Consumer Goods. In the Professional Hygiene division, Essity delivers sustainable hygiene management solutions, including dispensing systems for tissues, soaps, and sanitizers, alongside wiping and cleaning products tailored for businesses and public spaces. The Health & Medical segment provides essential products and services such as incontinence care, wound care, compression therapy, and orthopedics, supporting patients, caregivers, and healthcare professionals throughout the continuum of care. Additionally, the Consumer Goods division offers personal and home hygiene products, including baby care, feminine care, incontinence care, and consumer tissue products, addressing the needs of consumers at all life stages. This diversified portfolio enables Essity to maintain a significant presence in both professional and consumer markets, promoting clean and healthy environments worldwide.

Summarized from source with an LLMView SourceSector: Healthcare

Top-line and organic growth

Net sales Q2 2026: SEK 35,061m (+2.6% vs Q2 2025). Organic sales growth: +0.3% (volume +1.4%, price/mix -1.1%). Acquisition of the North American feminine care business added ~1.7 percentage points to sales in the quarter.

Profitability (EBITA)

EBITA Q2 2026: SEK 4,105m (including IAC) and EBITA excl. IAC: SEK 4,685m (flat vs prior year). EBITA margin excl. IAC fell to 13.4% from 13.7% in Q2 2025. Items affecting comparability (IAC) were SEK -580m (mainly cost‑savings program).

Net income and EPS

Profit for the period: SEK 2,693m (Q2 2025: SEK 3,053m, -12%). Earnings per share: SEK 3.94 (Q2 2025: 4.39, -10%). EPS excl. IAC and amortization: SEK 4.82 (up vs 4.71).

Cash flow and balance sheet

Operating cash flow Q2: SEK 2,790m (Q2 2025: 1,540m). Net debt at June 30, 2026: SEK 28,462m (increase vs Dec 31, 2025), net debt/EBITDA excl. IAC: 1.11. Working capital rose to SEK 15,764m (11% of net sales).

Returns and capital efficiency

Return on capital employed (ROCE) Q2 2026: 14.0% (16.7% prior year); ROCE excl. IAC: 16.0% (16.9%).

Capital allocation — share buyback

Board authorized a SEK 3bn buyback program (announced Apr 22); program commenced May 12, 2026. Between May 12 and June 30 Essity repurchased 2,117,242 Class B shares for SEK 554m; holdings at June 30 equaled 3,357,365 shares (~0.5% of outstanding).

Business‑area performance (high level)

Health & Medical, Personal Care and Professional Hygiene reported positive organic growth (notably Incontinence, Feminine Care, Medical Solutions and premium Professional Hygiene). Consumer Tissue declined: organic -5.3% in Q2, with lower volumes and prior price reductions; strategic review of Consumer Tissue global operations was initiated.

Cost, pricing and actions

Gross profit margin fell modestly (gross margin excl. IAC 32.6% vs 33.4 prior year); cost‑of‑goods sold pressure (distribution, energy) partly offset by ~SEK 160m in COGS savings and ~SEK 100–130m in sales & admin savings. Management cites ongoing price actions, efficiency programs and innovation to restore margins.

Other strategic items

Completed acquisition (North American feminine care) contributed to sales; Essity held a Capital Markets Day (May 7) outlining strategy to accelerate growth and execution; announced appointment of new Chief Legal Officer effective Jan 1, 2027.

Summarized from source with an LLMView Source

Key figures

4.25%1Y

9.81%3Y

-4.98%5Y

Performance

19.2%1Y

19.4%3Y

22.2%5Y

Volatility