Essity AB

ESSITY B

Equity

ISIN SE0009922164 / Valor 36851944

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

SEK 257.40+0.35%

Essity AB
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About company

Essity AB is a global hygiene and health company headquartered in Sweden, known for its comprehensive range of products and solutions across various sectors. The company operates in three main business areas: Professional Hygiene, Health & Medical, and Consumer Goods. In Professional Hygiene, Essity provides sustainable hygiene management solutions, including dispensing systems for tissues, soaps, and sanitizers, as well as wiping and cleaning products tailored for commercial and public environments. The Health & Medical segment focuses on supporting patients, caregivers, and healthcare professionals with products and services in incontinence care, wound care, compression therapy, and orthopedics. In the Consumer Goods sector, Essity offers a wide array of personal and home hygiene products, such as baby care, feminine care, incontinence care, and consumer tissue products, catering to various life stages. Essity's commitment to innovation and sustainability is reflected in its diverse product offerings designed to enhance well-being and quality of life.

Summarized from source with an LLMView SourceSector: Healthcare

Key financials (Q2 2026)

Net sales: SEK 35,061m (+2.6%). Organic sales growth: +0.3% (volume +1.4%, price/mix -1.1%). EBITA: SEK 4,105m; EBITA excl. IAC: SEK 4,685m. EBITA margin excl. IAC: 13.4% (13.7% in Q2 2025). Profit for the period: SEK 2,693m. EPS: SEK 3.94. EPS excl. IAC & amortization: SEK 4.82 (up 2% y/y).

Profitability & margins

Gross profit margin fell to 32.6% (‑0.7 ppt). IAC (items affecting comparability) amounted to SEK -580m (primarily related to the cost savings program). ROCE was 14.0% (ROCE excl. IAC 16.0%). Tax rate ~24.7% for the quarter.

Cash flow and balance sheet

Operating cash flow improved to SEK 2,790m (Q2 2025: SEK 1,540m). Net cash flow for the quarter was negative (driven by dividend and buybacks) and net debt increased to SEK 28,462m. Net debt/EBITDA excl. IAC was 1.11. Interest-bearing gross debt was SEK 38,547m and average maturity ~2.8 years.

Capital allocation — buybacks & dividend

Board approved a SEK 3bn Class B share buyback program (announced 22 Apr 2026). Between 12 May and 30 Jun 2026 Essity repurchased shares for SEK 554m (2,117,242 Class B shares). Repurchased shares expected to be canceled; buybacks financed from cash flow after ordinary dividend.

Business-area highlights (Q2 2026)

Health & Medical: Net sales SEK 6,918m, organic +3.1%; EBITA excl. IAC SEK 1,310m (+13%). Personal Care: Net sales SEK 8,815m (+14% reported; organic +3.8%), EBITA excl. IAC SEK 1,131m (slight increase). Consumer Tissue: Net sales SEK 10,202m (reported -4%; organic -5.3%), EBITA excl. IAC SEK 988m (-21%) — lower volumes and previous price reductions impacted results. Professional Hygiene: Net sales SEK 9,127m (+1%; organic +2.1%), EBITA excl. IAC SEK 1,573m (+3%). The North American feminine care acquisition added ~1.7% to Group sales.

CEO commentary & strategic actions

Management highlighted higher volumes and resilient profitability despite volatile cost inflation. Actions: efficiency improvements, increased investments in growth and innovation (including AI in product development), and a strategic review of the Consumer Tissue business to improve conditions for profitable growth.

What moved results vs. Q2 2025

Main drivers: volume growth in most business areas offset by negative price/mix effects (notably Consumer Tissue). Cost inflation (distribution, energy) pressured gross margin although some savings in COGS (~SEK 160m) and S&A (~SEK 100m) were realized. Currency translation had mixed, generally small impacts across areas.

Summarized from source with an LLMView Source

Key figures

3.75%1Y

9.39%3Y

-4.74%5Y

Performance

19.6%1Y

18.6%3Y

20.9%5Y

Volatility