Interim Report Quarter 1, 2025: Essity

USA - English

• USA - English

Solid performance with higher sales and strong cash flow

STOCKHOLM, April 24, 2025 /PRNewswire/ -- 

Quarter 1, 2025

• Net sales increased 0.4% to SEK 34,976m (34,850)
• Organic sales growth amounted to 2.1%, of which volume accounted for 0.0% and price/mix 2.1%.
• EBITA increased 4% to SEK 4,718m (4,523)
• EBITA excl. IAC decreased 4% to SEK 4,706m (4,880). Excluding currency translation effects, EBITA excl. IAC decreased by 2%.
• EBITA margin excl. IAC decreased 0.5 percentage points to 13.5% (14.0)
• ROCE amounted to 16.7% (15.9) and ROCE excl. IAC to 16.7% (17.2)
• Profit for the period, total operations, amounted to SEK 3,083m (11,493)
• Earnings per share, continuing operations, increased to SEK 4.43 (3.51). Earnings per share, total operations, decreased to SEK 4.43 (16.21).
• After the end of the first quarter, it was announced that Essity's Board of Directors had resolved on a new share buyback program for SEK 3bn beginning on April 24, 2025.

CEO'S COMMENTS

Essity began the year with positive organic sales growth in all business areas, stable profitability and continued strong cash flow. In these turbulent times, Essity's strength becomes clear – with production close to our customers and consumers, we deliver leading hygiene and health solutions that are needed every day.

Higher sales and a strong product portfolio

All business areas reported positive organic sales growth for the first quarter of 2025 compared to the same period in 2024. Growth was primarily driven by higher prices. In Health & Medical and Consumer Goods, volumes were higher, while volumes were lower in Professional Hygiene, mainly due to lower demand in North America.

During the quarter, we achieved product superiority of above 70%, meaning that customers and consumers rate Essity's products as the best in the market for more than 70% of the company's offerings. This is the highest percentage to date and the increase is the result of our latest product launches.

Stable profitability and strong cash flow

Earnings (EBITA excl. IAC) were slightly lower, mainly due to the higher cost of goods sold while higher sales prices increased earnings. EBITA margin excl. IAC was lower compared with the first quarter of 2024 but higher compared with the fourth quarter. Cash flow continued to develop strongly, mainly due to the robust earnings, and the company's financial position is good.

New share buyback program

The share buyback program that began in June 2024 was completed during the quarter, resulting in approximately 10 million shares being repurchased for SEK 3bn. The Annual General Meeting in March 2025 resolved to cancel own shares, which also took place after the end of the first quarter. The aim is to continue buying back shares as a recurring part of Essity's capital allocation, and on April 23 the Board of Directors resolved on a new SEK 3bn program, beginning on April 24, 2025.

Limited impact from trade tariffs

Essity has sales in approximately 150 countries, but we expect that the changed trade tariffs will only have a limited impact on the company. Our production is close to our customers and consumers, with approximately 70 production facilities worldwide. For the parts of our operations that are nonetheless affected, we are reviewing our flows and actively striving to optimize our production and supply chain.

Looking ahead

We remain committed to our ambition to accelerate the company's profitable growth during the year. We will achieve this through value-creating innovation, strong brands, efficiency improvements and by continuing our successful sustainability work.

Magnus Groth, President and CEO

Invitation to presentation

President and CEO Magnus Groth and Executive Vice President and CFO Fredrik Rystedt will present the interim report at a live webcast and teleconference at 09:00 CET on April 24, 2025.

Link to the live presentation, which can also be viewed afterwards: https://essity.videosync.fi/2025-04-24-q1

Contact information for conference call with the possibility to ask questions:

UK: +44 (0) 33 0551 02 00
USA: +1 786 697 35 01
SWE: +46 (0) 8 505 204 24

Please call in well in advance of the start of the presentation. Indicate: "Essity".

For additional information, please contact:

Fredrik Rystedt, Executive Vice President and CFO, tel: +46 (0) 8 788 51 31
Sandra Åberg, Vice President Investor Relations, tel: +46 (0) 70 564 96 89
Per Lorentz, Vice President Corporate Communications, tel: +46 (0) 73 313 30 55

NB: This information is such information that Essity Aktiebolag (publ) is obligated to make public pursuant to the EU Market Abuse Regulation. This report has been prepared in both Swedish and English versions. In case of variations in the content between the two versions, the Swedish version shall govern. The information was submitted for publication, through the agency of Karl Stoltz, Public Relations Director, at 07:00 CET on April 24, 2025.

This report has not been reviewed by the company's auditors.

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