Essity AB (publ)
STO:ESSITY B
Essity AB (publ)
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.
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.
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.
