Essity's Market Gains and Profitability in 2025
Essity has concluded 2025 with notable achievements in market share and profitability, demonstrating its resilience in a challenging economic landscape.
Quarter 4 Performance Highlights
In the fourth quarter of 2025, Essity recorded a net sales figure of SEK 34.7 billion, reflecting an 8.2% decrease from the previous year. This decline was primarily influenced by currency translation effects and a slight organic sales growth of -1.1%. Notably, EBITA rose by 9% to SEK 5.0 billion, with a margin of 14.7%, showcasing operational efficiency. The company also experienced a substantial increase in its return on capital employed (ROCE), reaching 17.6%.
Key Fourth Quarter Metrics
- Net Sales: SEK 34.7 billion
- EBITA: SEK 5.0 billion
- EBITA Margin: 14.7%
- Profit for the Period: SEK 3.2 billion
- Earnings Per Share: SEK 4.69
Full-Year 2025 Overview
For the entirety of 2025, Essity generated net sales of SEK 138.5 billion, a decrease of 4.8% year-on-year, with EBITA remaining strong at SEK 19.5 billion. The earnings per share saw a significant dip to SEK 18.37 from the previous SEK 29.83, largely due to prior year's exceptional performance. Nevertheless, the board has proposed a dividend increase of 6%, indicating confidence in the company's continued success.
Annual Financial Highlights
- Net Sales: SEK 138.5 billion
- EBITA: SEK 19.5 billion
- EBITA Margin: 14.1%
- Dividend Proposal: SEK 8.75 per share
CEO Insights on 2025 Success
Ulrika Kolsrud, the President and CEO, noted that despite the market challenges, the company’s strategic initiatives, including product innovation and an acquisition in the feminine care sector, have contributed substantially to its growth. The focus remains on enhancing customer offerings and accelerating growth through the newly implemented decentralized decision-making structure.
Strategic Acquisitions and Innovations
Essity’s recent acquisition of Edgewell's feminine care division, which includes well-known brands such as Carefree and Stayfree, aims to strengthen its presence in the North American market. This aligns with the company's goal to target categories with high growth potential, ensuring long-term profitability.
Future Growth Initiatives
Looking ahead, Essity is committed to fostering a faster growth rate by implementing a range of innovative measures and launching marketing strategies designed to enhance operational flexibility and consumer satisfaction.
Invitation to Investor Presentation
The leadership team, comprising Ulrika Kolsrud and CFO Fredrik Rystedt, will hold a live presentation to discuss the findings, allowing investors to engage and ask questions directly.
Frequently Asked Questions
What were Essity's net sales for 2025?
Essity reported net sales of SEK 138.5 billion for the year 2025.
How did Essity's EBITA change in the fourth quarter?
EBITA increased by 9% to SEK 5.0 billion in the fourth quarter of 2025.
What is the proposed dividend per share for 2025?
The Board of Directors proposed a dividend increase of 6%, bringing it to SEK 8.75 per share.
What strategic acquisition did Essity make in 2025?
Essity acquired Edgewell's feminine care business, including several renowned brands, to strengthen its market position in North America.
Who is the President and CEO of Essity?
Ulrika Kolsrud serves as the President and CEO of Essity.
