Strong Cash Flow and Balance Sheet
Essity reported a strong cash flow and a solid balance sheet. The company has continued to reduce its net debt, which is now close to SEK27 billion, with a net debt to EBITDA ratio of roughly about 1.
New Share Buyback Program
Essity announced a new SEK3 billion share buyback program to allocate its strong operating cash flow. The program begins immediately and extends until the next AGM.
Product Superiority
Essity reported that 71% of its branded sales are perceived to be superior in terms of price, mix, and product attributes and features, which drives customer preference and purchase intent.
Limited Impact from Tariffs
Essity indicated that the impact from tariffs is limited due to its global business model, where products are typically produced and raw materials sourced where they are sold.