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 Related Quotes
 Sea Ltd American Depositary Shares E  66.66   2.68  4.19%
 Enter Symbols: 
Essity's Interim Report, Quarter 1, 2024

STOCKHOLM, April 25, 2024 /PRNewswire/ --

Quarter 1, 2024 - High profitability and strong cash flow

  • Net sales decreased 4.1% to SEK 34,850m (36,352)
  • Organic growth amounted to -4.0%, of which volume accounted for -1.8% and price/mix -2.2%. Excluding restructuring and exited contracts, volumes increased 0.6%
  • EBITA increased 4% to SEK 4,523m (4,368)
  • EBITA excl. IAC increased 14% to SEK 4,880m (4,281) and the EBITA margin excl. IAC increased 2.2 percentage points to 14.0% (11.8)
  • ROCE increased to 15.9% (15.5) and ROCE excl. IAC increased 2.0 percentage points to 17.2% (15.2).
  • Operating cash flow increased 48% to SEK 4,253m (2,870)
  • Essity completed the divestment of all shares in the subsidiary Vinda. The sales proceeds amounted to approximately SEK 19bn and the profit from divestment to approximately SEK 9bn. Vinda is reported as discontinued operations.
  • Profit for the period, total operations amounted to SEK 11,493m (2,703)
  • Earnings per share, continuing operations amounted to SEK 3.51 (3.75)
  • Earnings per share, total operations increased to SEK 16.21 (3.79)

CEO'S COMMENTS

Innovation-driven growth

"Volume growth was positive for the quarter, except for the impact of restructuring measures implemented in Professional Hygiene and contracts exited in Incontinence Products Health Care. In Consumer Goods, Feminine Care gained market shares and Incontinence Products Retail continued to grow strongly.

Essity is in better shape than ever. The pace of innovation is high, which provides us with a good foundation for growth moving forward and to gain market shares.

By increasing investments in sales and marketing in our segments with the highest margins, the product mix remained positive. The mix this quarter was mainly driven by Professional Hygiene and Health & Medical. The pace of innovation is high, which provides us with a good foundation for growth moving forward and to gain market shares."

Higher margins

"Margins were higher for all business areas. We have had a good price discipline despite lower costs for raw materials and energy compared with one year ago. The gap between our sales prices and costs has thus increased. In addition, we achieved good cost savings for the quarter through continuous efficiency improvements, primarily in sourcing and material rationalizations."

Strong cash flow and a good financial position

"During the quarter, we received proceeds of approximately SEK 19bn from the sale of shares in Vinda. The transaction entailed a profit from divestment of approximately SEK 9bn. We also continued to generate strong cash flow in operations, providing us with a good financial position. Essity is in better shape than ever."

Magnus Groth, President and CEO

INVITATION TO PRESENTATION

President and CEO Magnus Groth and Executive Vice President and CFO Fredrik Rystedt will present the interim report at a live webcast and teleconference at 09:00 CET on April 25, 2024.

Link to the live presentation, which can also be viewed afterwards: https://essity.videosync.fi/2024-04-25

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".

The presentation will also be broadcast live on LinkedIn.

For additional information, please contact:
Fredrik Rystedt, CFO and Executive Vice President 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 interim report has not been reviewed by the company's auditors. This information is such 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, Media Relations Director, at 07:00 CET on April 25, 2024

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/essity/r/interim-report--quarter-1--2024,c3967445

The following files are available for download:

Cision src=https://c212.net/c/img/favicon.png?sn=IO97375&sd=2024-04-25 View original content:https://www.prnewswire.com/news-releases/essitys-interim-report-quarter-1-2024-302127002.html

SOURCE Essity

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