Essity reported a solid start to 2025 with strong cash flow and growth in high-margin categories. However, increased COGS pressure, challenges in Professional Hygiene volumes, and a decline in Baby Care posed significant challenges.
Company Guidance
In the first quarter of 2025, Essity reported a solid performance with higher sales and strong cash flow across all business areas. The company experienced growth in its high-margin categories, despite facing challenges such as higher costs of goods sold (COGS) and selling, general, and administrative (SG&A) expenses. Essity announced a SEK3 billion share buyback program, demonstrating its effective capital allocation strategy. In terms of product innovation, the company highlighted successful launches, including Tena ProSkin slip and Libero Touch, which contributed to their product superiority rating exceeding 70%. While tariffs were noted, their impact on Essity's business was deemed limited, thanks to the company's global production footprint. Looking forward, Essity aims to accelerate profitable growth with a focus on volume, maintaining stable volumes overall, and addressing specific areas such as North American Professional Hygiene and Baby Care where growth was softer. Overall, Essity remains committed to achieving its long-term growth targets amid a dynamic market environment.
Strong Cash Flow and Balance Sheet
Essity reported a strong cash flow and a solid balance sheet with net debt to EBITDA of roughly about 1. They announced a new SEK3 billion share buyback program to allocate their strong operating cash flow.
Growth in High-Margin Categories
The company saw strong growth in high-margin categories such as Medical and Feminine Care. Health & Medical grew by 1.7% organically, driven by volume, price, and mix.
Product Superiority and Innovation
Product superiority reached a new level, with 71% of branded sales perceived as superior. There were notable product launches in Consumer Tissue and Incontinence Care.
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Essity AB (SE:ESSITY.B) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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SE:ESSITY.B Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Apr 24, 2025
kr284.40
kr270.70
-4.82%
Jan 23, 2025
kr290.39
kr270.86
-6.72%
Oct 24, 2024
kr299.43
kr297.09
-0.78%
Jul 18, 2024
kr274.56
kr287.48
+4.71%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Essity AB (SE:ESSITY.B) report earnings?
Essity AB (SE:ESSITY.B) is schdueled to report earning on Jul 17, 2025, TBA Not Confirmed.
What is Essity AB (SE:ESSITY.B) earnings time?
Essity AB (SE:ESSITY.B) earnings time is at Jul 17, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.