#Sweden #Stockholm #Essity #financial report #Market Share

Overview of Essity's Performance in 2025

Essity, a leading global hygiene and health company, has released its financial report for the fourth quarter and the full year of 2025. The company witnessed strong profitability alongside increased market shares, although it faced a decline in net sales during the last quarter of the year. Despite this challenging scenario, Essity remains focused on enhancing its growth strategies in its key business segments.

Financial Highlights

In the fourth quarter of 2025, Essity reported a net sales reduction of 8.2%, amounting to SEK 34,695 million, compared to SEK 37,805 million from the previous year. This decline translates into an organic sales growth of -1.1%, driven primarily by a 0.9% drop in pricing and product mix adjustments, despite volume remaining relatively steady. However, the company's EBITA surged by 9%, reaching SEK 5,005 million, reflecting its strategic investments in marketing and product innovation, enhancing its profitability.

For the entire year, net sales decreased by 4.8% to SEK 138,494 million, with a slight organic growth of 0.9%. The company maintained healthy EBTA levels, showcasing resilience amid a fluctuating market. Importantly, the EBITA margin for the year grew to 14.1%, the highest in five years, indicating successful management of costs and operations.

Strategic Initiatives

Essity's CEO, Ulrika Kolsrud, emphasized that the gains in market share are attributed to robust product launches and targeted price adjustments across key segments. As for the retail sector, over 65% of branded products achieved increased market presence. Signature brands like TENA, Hydrofera®, Tork Peakserve®, and Saba® showed particularly robust growth. However, the challenges were significant due to price reductions impacting organic sales negatively during the last quarter.

In a strategic move to bolster its footprint in North America, Essity announced its acquisition of Edgewell's feminine care division, which includes popular brands such as Carefree, Stayfree, and Playtex. This acquisition is expected to elevate Essity's prospects in the personal care segment.

Looking Ahead

Despite the pressures faced in 2025, Essity remains committed to enhancing its growth trajectory. The company’s focus on innovation and customer-oriented strategies is evident in its restructuring efforts effective from January 1, 2026. This includes a push towards decentralized decision-making and a new cost-saving initiative aimed at refining operations further.

In terms of shareholder returns, Essity proposed a 6% dividend increase, up to SEK 8.75 per share, which reflects the company’s confidence in its sustained financial health despite market turmoil. This marks the continuation of strategic investments supported by a stable cash flow.

Ulrika Kolsrud expressed optimism regarding Essity's future, reinforcing the company's mission to provide essential hygiene and health products that maintain relevance regardless of market conditions. The company aims to ramp up its growth rate, setting ambitious targets for the upcoming years.

As the company gears up for future challenges, stakeholders are invited to join the upcoming webcast scheduled for January 22, 2026, for a detailed presentation of the results by Kolsrud and Fredrik Rystedt, Executive Vice President and CFO.

Conclusion

As 2025 unfolds, Essity has showcased notable resilience against a backdrop of economic challenges, maintaining both profitability and a strategic focus on growth. The company's forward-thinking strategies and enhanced operational efficiencies position it well to navigate the complexities of the market, promising positive prospects for the future.