Essity AB (publ)
F:ESW
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Essity AB (publ)
F:ESW
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SE |
Essity AB (publ)
Essity AB is a Swedish hygiene and health company that makes everyday products people use and replace often. Its main products include toilet paper, tissues, paper towels, diapers, adult incontinence products, menstrual care products, wound care items, and hygiene supplies for workplaces and public buildings. It sells well-known brands such as TENA, Tork, and Libero. The company serves two main customer groups: consumers who buy through grocery and drug stores, and businesses such as hospitals, nursing homes, offices, restaurants, and factories that need hygiene products in bulk or through dispenser systems. Essity makes money by selling these branded products through retailers, distributors, e-commerce, and direct business sales. What makes Essity different is that it sits in a stable part of the consumer and healthcare supply chain. Many of its products are used every day and bought repeatedly, which creates steady demand. It also combines household brands with professional hygiene systems, giving it a role in both the consumer aisle and the institutional market.
Essity AB is a Swedish hygiene and health company that makes everyday products people use and replace often. Its main products include toilet paper, tissues, paper towels, diapers, adult incontinence products, menstrual care products, wound care items, and hygiene supplies for workplaces and public buildings. It sells well-known brands such as TENA, Tork, and Libero.
The company serves two main customer groups: consumers who buy through grocery and drug stores, and businesses such as hospitals, nursing homes, offices, restaurants, and factories that need hygiene products in bulk or through dispenser systems. Essity makes money by selling these branded products through retailers, distributors, e-commerce, and direct business sales.
What makes Essity different is that it sits in a stable part of the consumer and healthcare supply chain. Many of its products are used every day and bought repeatedly, which creates steady demand. It also combines household brands with professional hygiene systems, giving it a role in both the consumer aisle and the institutional market.
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.
