Essity Interim Report Quarter 3, 2026

• Net sales increased 4.1 percent to SEK 36,060m (34,638)
• Organic sales growth amounted to -0.3 percent, of which volume accounted for -0.1 percent and price/mix -0.2 percent.
• EBITA amounted to SEK 3,636m (5,152)
• EBITA excl. IAC amounted to SEK 4,725m (5,056)
• The EBITA margin excl. IAC amounted to 13.1 percent (14.6)
• ROCE amounted to 11.9 percent (17.9) and ROCE excl. IAC was 15.5 percent (17.6)
• Profit for the period was SEK 2,346m (3,358)
• Earnings per share was SEK 3.47 (4.86)
• Operating cash flow amounted to SEK 5,783m (5,324)
• Essity has entered into an agreement to acquire Kenvue’s feminine care business in Brazil. The completion of the transaction is expected to close during the second quarter of 2027.

Ulrika Kolsrud, President and CEO comments:

Essity’s development in the third quarter was characterized by stability and resilience in a challenging market. Profitability remained good despite intensifying cost headwinds, and cash flow was strong. Volumes were stable, and we strengthened our market positions in several strategic segments, demonstrating the competitiveness of our business. At the same time, the Group’s sales development was not at the level we are aiming for, and we continue our efforts to accelerate profitable growth and offset higher costs through price increases and efficiency improvements. Cost savings were delivered according to plan, investments in marketing and customer offerings are yielding results, and sales prices were higher than in the second quarter of this year.

Demonstrated strength across several categories

Health & Medical delivered organic growth and good profitability during the quarter. Incontinence Products continued to grow, and the sales development in Medical Solutions was positive, with good growth in wound care. Sales in Personal Care also performed well, supported by continued high growth and increased market shares in Incontinence Products and Feminine Care. Consumer Tissue had lower sales due to lower volumes, primarily driven by optimization of the production footprint in Latin America, and price reductions in previous quarters. In Professional Hygiene, profitability remained solid, although volume development was not satisfactory. The decline was concentrated to the base assortment and smaller distributors which were more affected by the weaker market. However, we continued to grow in strategic products and increased sales to our larger distributors and customers.

Product launches and price increases

During the quarter, we launched new and improved products across several categories to further strengthen our offering. For example, we expanded our range of compression garments with JOBST® Elvarex® Soft ready-to-wear, allowing us to reach patients more quickly.

We continued to actively work on price increases to offset higher costs, and all business areas reported higher sales prices compared with the second quarter.

“Our focus is on translating strong market positions into profitable growth”

Another acquisition in feminine care

During the quarter, we took another step forward in our strategy to grow in attractive, value-creating categories by entering into an agreement to acquire Kenvue’s feminine care business in Brazil. The acquisition includes the market-leading brands Carefree, Sempre Livre and o.b., and strengthens Essity’s position in feminine care in Latin America. Brazil represents a significant growth opportunity in hygiene and health, where we already hold a leading position in incontinence products with TENA. This acquisition follows our previous feminine care acquisition in North America and represents another concrete step in the expansion of our feminine care business, where we have a proven track record of success and see good potential for profitable growth. The transaction is subject to regulatory approval and is expected to close in the second quarter of 2027.

Strategic review of Consumer Tissue

The strategic review of Consumer Tissue is proceeding according to plan. We have assessed the conditions for a separation and are now ready to move forward with evaluating the value creation potential of the different strategic alternatives – a separation or Consumer Tissue remaining part of Essity. The ambition is to identify the alternative that provides the best opportunity for both Consumer Tissue and Essity to reach their full potential and maximize long-term value creation.

Focus on higher growth

Our focus is on translating strong market positions into profitable growth. We continue to prioritize investments where we see the greatest opportunities to grow and create value, while improving efficiency and addressing increasing cost headwinds through pricing and cost measures. In parallel, we continue to develop our portfolio. We have clear priorities and will now ensure that our initiatives have a greater impact on the Group’s growth and profitability.

Ulrika Kolsrud, President and CEO

The full report can be viewed by visiting: Essity Report ENG

Source: Essity