Essity Reports Q1 2026 Results

Essity delivered a solid start to 2026, marked by volume growth, improved margins, and strategic expansion, despite a challenging macroeconomic environment.

📊 Financial Highlights (Q1 2026)

• Net Sales: SEK 33.2bn (↓5.1% YoY)

• Organic Sales Growth: +0.4% (Volume +1.1%, Price/Mix -0.7%)

• EBITA: SEK 4.45bn (↓6%)

• EBITA Margin (excl. IAC): 13.9% (↑40 bps)

• Profit for the Period: SEK 2.9bn (↓6%)

• EPS: SEK 4.23

• Operating Cash Flow: SEK 4.35bn (↑16%)

• Net Debt/EBITDA: 0.96x

👉 Margin improvement driven by higher volumes, lower raw material costs, and cost discipline.

📈 Business Performance Overview

✅ Growth Drivers

• Strong volume growth across Personal Care & Professional Hygiene

• Market share gains in key categories

• Continued premium product mix improvement

⚠️ Weak Areas

• Consumer Tissue declined due to lower prices and private label softness

• Negative currency impact (-6.6%) impacted reported sales

🧴 Segment Highlights

Personal Care

• Organic growth: +4.1%

• Strong performance in Incontinence & Feminine Care

• Acquisition boosted sales (+4.9%)

Health & Medical

• Organic growth: +0.5%

• Strong demand in wound care & medical solutions

Professional Hygiene

• Organic growth: +1.9%

• Growth driven by North America & premium products

Consumer Tissue

• Organic growth: -3.5%

• Pressure from pricing and volumes decline

🤝 M&A and Strategic Developments

✅ Major Acquisition Completed

• Acquired Edgewell Personal Care’s Feminine Care business

• Deal Value: USD 339m (~SEK 2.99bn)

• Brands include: Carefree, Stayfree, o.b., Playtex

• Adds ~500 employees and strengthens North America presence

➡️ Acquisition contributed +1.1% to group sales and nearly doubles regional footprint.

💰 Capital Allocation & Shareholder Returns

• New Share Buyback Program: SEK 3bn (starting May 2026)

• Previous SEK 3bn buyback completed in March 2026

• Dividend Approved: SEK 8.75/share

🏗️ Investments & Capex

• Capex: ~SEK 1.25bn in Q1

• Focus areas:

  • Innovation & product development

  • Manufacturing efficiency

• Secured EUR 400m loan from European Investment Bank (EIB) to fund R&D and innovation

🚀 Innovation & Product Launches

• New Libero premium diapers

• Upgraded TENA incontinence products

• Launch of coreless paper towels (Zewa) in Germany

• Expansion in “period pants” category for teenagers

🔄 Restructuring / Cost Actions

• Ongoing cost savings program (impact included in IAC)

• Savings in cost of goods sold (~SEK 130m)

• Continued organizational restructuring into 4 business segments

🌍 Operational & Market Outlook

• Facing geopolitical volatility and commodity price risks

• Strong resilience due to:

  • Essential product portfolio

  • Regional supply chains

  • Pricing flexibility

📉 Cash Flow & Balance Sheet

• Strong operating cash flow growth (+16%)

• Acquisition impacted net cash flow (-SEK 3bn)

• Net debt reduced to SEK 24.5bn

• Strong balance sheet supports continued buybacks

🧭 Future Strategy & Outlook

• Focus on:

  • High-growth categories (Feminine Care, Incontinence)

  • Premiumization & innovation

  • Margin expansion

• Capital Markets Day scheduled for May 7, 2026

• Continued commitment to shareholder returns and disciplined M&A

⚖️ Other Key Updates

• Lawsuit related to bond loans discontinued

• New Chief Digital & Information Officer appointed

• Sustainability progress:

  • Emissions reduced 28% vs 2016 baseline

  • 81% of innovations sustainable

🗣️ Management Commentary

CEO Ulrika Kolsrud stated:

Essity entered 2026 with strong momentum, delivering volume growth, increased market shares, and improved margins, while continuing to invest in innovation and strategic expansion.

✅ Conclusion

Essity’s Q1 2026 performance reflects a resilient and strategically focused business, balancing:

• Growth investments

• Margin improvement

• Shareholder returns

Despite external challenges, the company is well-positioned for long-term profitable growth, driven by innovation, acquisitions, and operational efficiency.