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Essity Lifts Profitability and Dividend Despite Lower 2025 Sales

Story Highlights
  • Essity improved profitability and margins in 2025 despite declining reported sales and modest organic growth.
  • Stronger returns, higher earnings per share and a proposed 6% dividend increase signal confidence in Essity’s financial position.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Essity Lifts Profitability and Dividend Despite Lower 2025 Sales

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An update from Essity AB ( ($SE:ESSITY.B) ) is now available.

Essity ended 2025 with higher margins and profitability despite lower reported sales, as currency effects weighed on the top line but underlying demand and pricing remained resilient. In the fourth quarter, net sales fell 8.2% to SEK 34.7bn and organic sales declined 1.1%, yet EBITA excluding items affecting comparability rose 3% and the margin improved to 14.7%, driving an 11% increase in profit for the period. For the full year, net sales decreased 4.8% to SEK 138.5bn, although net sales excluding currency translation effects increased and organic sales grew 0.9%, while EBITA was broadly flat and margins edged higher. Return on capital employed strengthened and earnings per share from continuing operations increased, and the board proposed a 6% dividend hike, signalling confidence in cash generation and balance sheet strength despite a sharp year-on-year decline in profit for total operations due to non-recurring effects in the prior year.

The most recent analyst rating on ($SE:ESSITY.B) stock is a Hold with a SEK274.00 price target. To see the full list of analyst forecasts on Essity AB stock, see the SE:ESSITY.B Stock Forecast page.

More about Essity AB

Essity AB is a global hygiene and health company that develops, produces and sells tissue, personal care and professional hygiene products. Its portfolio includes consumer tissue, incontinence products, baby and feminine care, and solutions for professional and medical hygiene, with operations focused on large international retail and institutional markets.

Average Trading Volume: 1,254,885

Technical Sentiment Signal: Strong Buy

Current Market Cap: SEK187.4B

Learn more about ESSITY.B stock on TipRanks’ Stock Analysis page.

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