Essity Aktiebolag Publ Stock Earnings Reports

Essity delivered positive organic sales growth in Q2 2026, driven primarily by volume growth across the group (notably Health & Medical, Personal Care and Professional Hygiene), while Consumer Tissue saw lower volumes and pricing. Margins remained resilient despite cost inflation from pulp, oil-based materials and energy; management is implementing price increases (with typical lags) and expects to continue doing so selectively to protect margins and market share. Cost-savings programs in SG&A and COGS are starting to show results (c. SEK 100m benefit in Q2) and management remains confident of achieving a SEK 1bn+ run-rate saving by year-end. The Edgewell feminine business acquisition in North America is performing in line on sales/volume but has caused a near-term margin drag due to integration/service costs; management expects to restore margins as integration progresses. Cash flow was solid (operating cash flow SEK 2.8bn), net debt/EBITDA remains strong at ~1.1, and share buybacks of ~SEK 550m were executed in Q2. Guidance: expect higher COGS (oil-based materials, energy) and somewhat higher SG&A in Q3 vs Q3 2025 (Q3 energy hedge ~65%). A strategic review of the Consumer Tissue business is ongoing (expected 6–12 months). Management highlighted continued investment in innovation, marketing and selective price actions, and increasing adoption of AI across the value chain.