Essity AB (SE:ESSITY.B)
:ESSITY.B
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Earnings Data
Report Date
Jul 16, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
4.43Last Year’s EPS
4.39Same Quarter Last Year
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a constructive operational and financial picture: underlying constant‑currency sales growth, broad-based volume improvement, margin expansion, strong cash generation, balance sheet strength and strategic progress on M&A and sustainability. However, near‑term risks were highlighted — notably a reported sales decline from FX, Consumer Tissue softness in Europe, acquisition-related margin drag and expected input cost inflation with lagged P&L effects. Management emphasized pricing agility, ongoing integration and a continued cost‑savings and innovation agenda to protect margins. Overall, positives (organic/volume momentum, margin expansion, cash flow, completed strategic acquisition and share buyback) moderately outweigh the risks tied to commodity cost inflation, integration transition costs and some regional category weaknesses.Company Guidance
Reported vs Constant Currency Sales
Reported sales declined 5.1% (driven by a stronger SEK / currency translation) while sales increased ~1.5% in constant currency (roughly SEK 0.5 billion). The acquisition of the North American Feminine Care business contributed ~1.1% of the CC increase and organic sales growth contributed ~0.4%.
Volume Growth and Category Momentum
Group volume growth of 1.1% in Q1. Personal Care volumes up 3.5% (strong incontinence and feminine care performance), Professional Hygiene volumes up ~1.9% (including >10% growth in Tork PeakServe and +5% Tork Skincare), while Consumer Tissue volumes were slightly down (~-0.5%).
Margin Improvement
Group margin increased by ~40 basis points in the quarter; gross profit improvement accounted for ~60 basis points (benefitting from lower COGS, positive FX effects and ~SEK 130 million of savings realized in Q1). All business areas except Consumer Tissue strengthened margins.
Strong Cash Flow and Balance Sheet
Seasonally strong operating cash flow of SEK 4.4 billion in Q1 and cash flow after finance and taxes of SEK 3.0 billion. Net debt at SEK 24.5 billion with net debt/EBITDA ~0.96–1.0, supported by a >SEK 3 billion reduction in pension liabilities in the quarter.
Completed Acquisition and Strategic M&A
Completed acquisition of Edgewell's Feminine Care assets in North America (OB, Playtex, Carefree, Stayfree) effective 2 Feb, more than doubling Essity's Personal Care sales in the U.S.; acquisition is strategic priority and integration work (business continuity, customer engagement, supply chain and brand/innovation synergies) is underway.
Capital Allocation — Share Buyback
Board announced a new share buyback program of SEK 3.0 billion starting 11 May 2026 through AGM 2027; SEK 600 million of buybacks were executed in the quarter, indicating continued shareholder return focus.
Innovation and Portfolio Highlights
Product launches and upgrades include leakproof apparel (new teen range and Smart Protect technology reapplication), upgraded Libero (softer Libero Touch) supporting Baby branded growth and market share gains, and Zewa Wisch&Weg Smart (coreless technology applied to household towels). Branded Consumer Tissue continued to gain market share and grow volumes.
Sustainability & Operational Investments
Inaugurated a new biomass boiler at the Kunheim factory (France) covering ~70% of steam needs at the plant, reducing natural gas dependency by >50% and cutting paper-machine carbon footprint by >40% — demonstrating tangible execution on net-zero ambition and improved long-term cost resilience.
Reputation & Specialty Wins
Continued strength in Medical Solutions (consecutive growth in Wound Care) and highlighted brand credibility via JOBST compression garments being used by NASA (Artemis II), reinforcing product performance under demanding conditions.
SE:ESSITY.B Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
SE:ESSITY.B Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 23, 2026 | kr244.90 | kr249.30 | +1.80% |
Jan 22, 2026 | kr261.90 | kr242.50 | -7.41% |
Oct 23, 2025 | kr254.66 | kr258.52 | +1.52% |
Jul 17, 2025 | kr250.13 | kr238.84 | -4.51% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Essity AB (SE:ESSITY.B) report earnings?
Essity AB (SE:ESSITY.B) is schdueled to report earning on Jul 16, 2026, Before Open (Confirmed).
What is Essity AB (SE:ESSITY.B) earnings time?
Essity AB (SE:ESSITY.B) earnings time is at Jul 16, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is the P/E ratio of Essity AB stock?
The P/E ratio of Essity AB is N/A.
What is SE:ESSITY.B EPS forecast?
SE:ESSITY.B EPS forecast for the fiscal quarter 2026 (Q2) is 4.43.