STOCKHOLM, Oct. 23, 2025 /PRNewswire/ -- Organic growth, higher margin and strong cash flow
Quarter 3, 2025
- Net sales decreased 4.5% to SEK 34,638m (36,274). Excl. currency translation effects, net sales increased SEK 322m.
- Organic sales growth amounted to 0.9%, of which volume accounted for 0.2% and price/mix 0.7%
- EBITA increased to SEK 5,152m (5,130)
- EBITA excl. IAC decreased 1% to SEK 5,056m (5,097). Excl. currency translation effects, EBITA excl. IAC increased 5%, corresponding to SEK 278m.
- EBITA margin excl. IAC increased 0.5 percentage points to 14.6% (14.1)
- ROCE amounted to 17.9% (17.8) and ROCE excl. IAC to 17.6% (17.7)
- Profit for the period, total operations, increased to SEK 3,358m (3,329).
- Earnings per share, total operations, increased to SEK 4.86 (4.73).
- On October 23, 2025, it was announced that an organizational change and a cost savings program are launched to create better conditions for profitable growth.
CEO'S COMMENTS
Our efforts to drive growth and reduce costs have yielded results and the third quarter developed favourably in continued challenging market conditions. In parallel, we are today launching measures aimed at creating better conditions for profitable growth - an organizational change and a cost savings program.
Positive organic sales growth
Organic growth was positive compared with the third quarter of the previous year, mainly driven by higher prices. Volumes and product mix also contributed positively. All business areas reported positive organic growth. Growth remained strong in Incontinence Products Retail, Feminine Care and Medical Solutions. However, Consumer Tissue noted negative growth, driven by lower volumes in Europe. In Professional Hygiene, Baby Care and Incontinence Health Care, we reported a positive volume development compared with the first half-year, although markets remained challenging.
Strengthened margins
The company's gross margin improved as a result of higher volumes and prices, in addition to lower costs of goods sold, including cost savings. We have reduced sales and administration costs compared with the second quarter of this year, and are delivering a strengthened margin of 14.6%, profit of more than SEK 5bn and strong cash flow.
Market-tailored innovation
Innovation is the main driver of growth for the company and our launches are tailored to the situation of our customers and consumers. One example is the launch of TENA ProSkin Stretch Day & Night, a new unique incontinence product that is easy to put on and take off, making it easier for both the patient and healthcare professionals. The product helps reduce the cost of continence care, which is especially relevant in the light of tight healthcare budgets.
"Today, I am launching measures that create better conditions for Essity to increase its growth rate going forward."
Measures to increase growth rate
With the aim of increasing our growth rate, and considering the current economic climate, we are launching a number of measures today to faster achieve the company's financial targets:
- We are making an organizational change that will decentralize decision-making and strengthen end-to-end accountability for each product category. A simplified structure with a more well-defined allocation of responsibilities enhances the company's customer and consumer focus, while increasing our speed, agility and operational efficiency. The change also facilitates increased strategic focus on the categories with the greatest potential for profitable growth.
- In parallel, a cost savings program is launched, mainly encompassing sales and administration costs excluding marketing costs. The program is expected to generate annual cost savings of approximately SEK 1bn, with full effect by the end of 2026. The organizational change will contribute to reducing costs. The savings will mainly be invested in profitable volume growth. This program is in addition to our annual savings in costs of goods sold of SEK 0.5-1bn.
These measures will contribute to our goal of reaching more people with our leading hygiene and health products, capturing market shares and maximizing the potential of our product portfolio.
Ulrika Kolsrud, President and CEO
Invitation to presentation
President and CEO Ulrika Kolsrud and Executive Vice President and CFO Fredrik Rystedt will present the interim report at a live webcast and teleconference at 09:00 CET on October 23, 2025.
Link to the live presentation, which can also be viewed afterwards:
https://essity.videosync.fi/2025-10-23
Contact information for conference call with the possibility to ask questions:
UK: +44 (0) 33 0551 02 00
USA: +1 786 697 35 01
SWE: +46 (0) 8 505 204 24
Please call in well in advance of the start of the presentation. Indicate: "Essity".
For additional information:
Fredrik Rystedt, Executive Vice President and CFO, tel: +46 (0) 8 788 51 31
Sandra Åberg, Vice President Investor Relations, tel: +46 (0) 70 564 96 89
Per Lorentz, Vice President Corporate Communications, tel: +46 (0) 73 313 30 55
NB: This information is such information that Essity Aktiebolag (publ) is obligated to make public pursuant to the EU Market Abuse Regulation. This report has been prepared in both Swedish and English versions. In case of variations in the content between the two versions, the Swedish version shall govern. The information was submitted for publication, through the agency of Karl Stoltz, Public Relations Director at 07:00 a.m. CET on October 23, 2025.
This report has not been reviewed by the company's auditors.
This information was brought to you by Cision http://news.cision.com
https://news.cision.com/essity/r/interim-report-quarter-3--2025,c4254954
The following files are available for download:
Essity Report ENG |
View original content:https://www.prnewswire.co.uk/news-releases/essity-interim-report-quarter-3-2025-302592465.html
Voltar noticias em Inglês