Essity Reports Increased Sales and Resilient Profitability in Q2 2026 Amid Global Challenges

Essity's Q2 2026 Financial Report: A Detailed Overview

In its recently released interim report for the second quarter of 2026, Essity, the prominent health and hygiene company, announced a noteworthy increase in net sales. The company recorded a 2.6% rise, bringing the total to SEK 35,061 million compared to SEK 34,185 million in the previous year. Despite the volatility in the global economic landscape, Essity demonstrated impressive resilience and adaptability.

Key Financial Highlights

Essity's organic sales growth reached 0.3%, with volume growth contributing 1.4% and a price/mix change of -1.1%. The Earnings Before Interest, Taxes, and Amortization (EBITA) amounted to SEK 4,105 million, showing a slight decline from SEK 4,628 million in the same quarter last year. When excluding items affecting comparability (IAC), EBITA totaled SEK 4,685 million. The EBITA margin, excluding IAC, saw a modest decrease of 0.3 percentage points, standing at 13.4%. Return on Capital Employed (ROCE) was reported at 14.0%, down from the previous 16.7%.

Furthermore, profit for the period was SEK 2,693 million, a drop from SEK 3,053 million a year prior, with earnings per share at SEK 3.94 compared to 4.39 in Q2 2025.

CEO's Perspective

Ulrika Kolsrud, President and CEO of Essity, attributed the growth in net sales to the stronger volume and improved product mix. Kolsrud emphasized the ongoing efforts to innovate, enhance marketing, and implement selective pricing strategies, which have positively influenced the growth across various sectors such as Health & Medical, Personal Care, and Professional Hygiene. Despite the pressures from geopolitical instability leading to higher inflation, the company's profitability remained robust. Kolsrud expressed confidence in the initiatives underway to advance the company's financial targets and overall performance.

Adaptability in a Changing Market

Essity's report noted that three of its four business divisions saw positive contributions in growth, specifically in areas like Incontinence Products Retail, Feminine Care, and Medical Solutions. While sales in the Consumer Tissue sector faced declines due to lower prices and volumes, the company has begun measures to stabilize this segment.

The company’s effective cost management resulted in savings in goods sold and operational expenses, helping to mitigate some of the financial impact of external cost inflation. Kolsrud pointed to innovation as the cornerstone of Essity's competitive edge, showcasing new product launches across all divisions, including advancements in the TENA product line and fresh solutions in Medical and Professional Hygiene sectors. By integrating AI technologies, Essity aims to enhance efficiency and expedite product development processes.

Strategic Directions Ahead

Looking ahead, Essity is optimistic about the second half of 2026, anticipating positive effects from its new organizational framework and efficiency-driven improvements. The company will continue to prioritize cost reduction initiatives while increasing investments in growth and enhancing innovation to secure its market position. Kolsrud reaffirmed Essity's commitment to creating sustainable long-term value for its customers, consumers, and shareholders amid ongoing global challenges.

In conclusion, Essity's Q2 2026 report highlights a resilient performance, characterized by increased sales, strategic innovation, and effective cost management, setting a forward-looking agenda to navigate the challenges ahead effectively.

For further insights and a detailed explanation of the financial figures, interested parties are invited to join the live webcast hosted by CEO Ulrika Kolsrud and CFO Fredrik Rystedt, scheduled for 9:00 a.m. CET on July 16, 2026.