Essity Reports Strong Profitability in 2025; Announces Acquisition, Cost Savings Program and Share Buybacks

Stockholm, Sweden – March 2026: Global hygiene and health company Essity reported stable growth and improved profitability in its 2025 Annual Report, supported by innovation, strategic acquisitions, and operational efficiency initiatives. The company also announced a cost savings program, a new organizational structure, and continued shareholder returns through dividends and share buybacks.

Financial Performance

For fiscal year 2025, Essity reported net sales of SEK 138.5 billion, while EBITA excluding items affecting comparability reached SEK 19.6 billion, resulting in an EBITA margin of 14.1%, the highest level in five years.

Organic sales grew 0.9%, with positive growth across all business areas despite weak macroeconomic conditions in several markets.

Other key financial highlights include:

• Operating cash flow: SEK 14.998 billion

• Return on capital employed (ROCE): 17.2%

• Earnings per share: SEK 18.37

• Employees: approximately 36,000 globally

• Market capitalization: SEK 184 billion (as of December 31, 2025)

The Board of Directors has proposed a dividend of SEK 8.75 per share, representing a 6% increase compared with 2024.

Strategic Acquisition

Essity entered into an agreement to acquire Edgewell’s feminine care business, including the Carefree, Stayfree and o.b. brands in North America and Playtex globally. The acquisition was completed on February 2, 2026 and is expected to strengthen Essity’s position in the feminine care segment in North America.

The transaction supports Essity’s strategy of expanding in high-margin product categories and attractive geographic markets.

Organizational Restructuring

Beginning January 1, 2026, Essity implemented a new organizational structure consisting of four business areas:

• Health & Medical

• Personal Care

• Consumer Tissue

• Professional Hygiene

The new structure gives each business area full responsibility for the value chain and aims to accelerate decision-making and improve operational efficiency.

Cost Savings Program

Essity launched a cost savings program targeting approximately SEK 1 billion in annual savings, primarily within sales and administrative functions.

The program is expected to deliver its full financial impact by the end of 2026, with savings planned to be reinvested into initiatives that drive profitable volume growth.

Capital Allocation and Shareholder Returns

Essity initiated a SEK 3 billion share buyback program for Class B shares in April 2025, which will run until the 2026 Annual General Meeting. Repurchased shares are expected to be canceled as part of the company’s capital allocation strategy.

The company continues to target long-term stable and growing dividends supported by strong cash flow generation.

Leadership Update

In 2025, Ulrika Kolsrud was appointed President and CEO, succeeding Magnus Groth. She officially assumed the role on June 1, 2025, after previously serving as President of the Health & Medical business area.

Innovation and Product Launches

Essity continued to expand its product portfolio through innovation across hygiene and healthcare categories. Key launches included:

• TENA ProSkin Stretch Day & Night incontinence product

• Actimove Manus Air wrist fracture treatment solution

• Nosotras Invisible Day Pad with enhanced protection

• Tork Matic Sensor Dispenser with battery life of up to six years

These innovations aim to improve patient outcomes, increase efficiency for healthcare providers, and strengthen Essity’s competitive positioning.

Market Outlook and Growth Strategy

Essity operates in a global hygiene and health market valued at approximately SEK 720 billion, driven by long-term trends including:

• Aging populations

• Rising healthcare demand

• Increased awareness of hygiene and health

• Growth in emerging markets

The company targets organic sales growth above 3% and an EBITA margin above 15% over time, while pursuing innovation, sustainability initiatives, and selective acquisitions to drive long-term shareholder value.

Sustainability Commitments

Sustainability remains central to Essity’s strategy. The company aims to achieve net-zero emissions by 2050 and continues to receive global recognition, including the EcoVadis Platinum medal, CDP’s global A list, and inclusion in the Dow Jones Sustainability Index.