Essity's Thriving Performance: A Closer Look at Q3 2025 Results

Essity's Q3 2025 Performance Review

STOCKHOLM – In the latest interim report for the third quarter of 2025, Essity has showcased a proactive approach in navigating a challenging market. The report highlights organic growth, improved margins, and strong cash flow, reflecting the company’s commitment to profitability and innovation.

Financial Highlights

• Net sales for the quarter amounted to SEK 34,638 million, reflecting a decrease of 4.5% compared to SEK 36,274 million. Excluding currency effects, net sales showed a slight increase of SEK 322 million.
• Organic sales growth was registered at 0.9%, with a contribution from volume of 0.2% and price/mix at 0.7%.
• EBITA experienced a modest increase to SEK 5,152 million from SEK 5,130 million, while EBITA excluding items affecting comparability (IAC) experienced a 1% decrease to SEK 5,056 million.
• The EBITA margin exclusive of IAC saw an uplift of 0.5 percentage points to 14.6%.
• Return on capital employed (ROCE) stood at 17.9%, marking a slight improvement from the previous year's figure of 17.8%.
• Profits for the period increased to SEK 3,358 million, with earnings per share rising to SEK 4.86, up from SEK 4.73.

CEO's Insights on Strategic Directions

The CEO expressed satisfaction with the company’s performance amid unfavorable conditions, noting that the third quarter unfolded positively. The introduction of new measures aimed at enhancing profitability includes organizational changes and cost-saving initiatives.

Positive Growth Indicators

The reported organic growth is attributed mainly to rising prices, while product volumes and mixes added to the positive picture. Key business segments such as Incontinence Products Retail, Feminine Care, and Medical Solutions demonstrated strong growth, despite a decline in the Consumer Tissue sector due to reduced volumes in Europe.

Enhancing Profit Margins

Essity enjoyed improved gross margins due to a combination of higher volumes, price adjustments, and significant cost reduction strategies. The company's margin strength of 14.6% stems from reduced spending in sales and administrative sectors when compared to the previous quarter.

Innovative Product Launches

Innovation plays a pivotal role in Essity’s growth trajectory. The company recently launched the TENA ProSkin Stretch Day & Night, an innovative incontinence product designed to simplify care for both patients and healthcare practitioners. This product aims to lower continence care costs, a necessity in the current climate of stringent healthcare budgets.

Strategic Measures for Growth

To bolster growth, Essity has initiated several key measures:

• An organizational restructuring to decentralize decision-making will enhance responsiveness and accountability across product categories, thus improving operational efficiency.
• A cost savings initiative is projected to generate substantial savings, anticipated to reach SEK 1 billion annually by the end of 2026, focusing primarily on sales and administration costs, while still ensuring effective investment in profitable growth.

These strategies are anticipated to position Essity favorably for future growth by tapping into new market opportunities and maximizing the potential of its diversified product portfolio.

Leadership and Upcoming Engagements

Ulrika Kolsrud, President and CEO, is committed to guiding Essity through its transformative phase, emphasizing the importance of reaching broader customer demographics with its comprehensive range of hygiene and health solutions.

The upcoming presentation of the interim results will be led by Ulrika Kolsrud and CFO Fredrik Rystedt, with a live webcast scheduled for the start of the conference, fostering an open dialogue with stakeholders.

Contact Information

For queries related to the presentation or further details, participants can reach out:

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

Please ensure to call in advance and indicate that you are contacting regarding Essity.

Frequently Asked Questions

What were the main financial highlights from Essity's Q3 2025 report?

Essity's Q3 2025 report noted a net sales decrease of 4.5%, with EBITA increasing to SEK 5,152 million and solid earnings growth.

What strategies is Essity implementing to improve profitability?

Essity is introducing organizational changes and a cost-saving program aimed at enhancing agility and efficiency in reaching its financial goals.

How did organic sales growth perform in Q3 2025?

Organic sales growth was up by 0.9% for the quarter, driven largely by pricing strategies.

What innovations has Essity recently launched?

Essity launched the TENA ProSkin Stretch Day & Night, designed to improve incontinence care while reducing associated costs.

Who are the key individuals presenting the interim report?

The interim report will be presented by Ulrika Kolsrud, President and CEO, alongside Fredrik Rystedt, Executive Vice President and CFO.

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