#Sweden #Stockholm #Essity Aktiebolag #Class B shares #Buyback program

Essity's Continued Commitment to Shareholder Value

Essity Aktiebolag, a leading global hygiene and health company, has confirmed its ongoing commitment to enhancing shareholder value through a significant buyback program. Between March 3 and March 7, 2025, the company successfully repurchased a total of 270,000 Class B shares under the framework of its initiated buyback plan. This strategic move is part of a broader buyback commitment announced earlier, which totals SEK 3 billion.

The specifics of the recent transactions detail a daily buyback of 54,000 shares over five consecutive days, with the average purchase price slightly fluctuating daily. For instance, on March 3, shares were bought at an average price of SEK 298.0170, while on March 4, the price rose to SEK 305.1761. This continued activity is expected to play an essential role in shaping Essity's future market dynamics.

The Broader Buyback Program

The buyback initiative, originally launched on June 17, 2024, is part of Essity's strategy to stabilize its share value and reward its investors. The buyback program is designed to be conducted until the upcoming 2025 Annual General Meeting, in accordance with EU regulations regarding market conduct, specifically the EU Market Abuse Regulation (MAR) and the European Commission's Safe Harbour Regulation 2016/1052.

Financed through cash flow from current operational revenues after the distribution of regular dividends, Essity aims to maintain its buyback strategy as an integral component of its capital allocation moving forward. As confirmed on March 7, 2025, the total holding of treasury shares has amped up to 9,882,000, contributing to an overarching total of 702,342,489 shares in circulation, indicating a healthy market position for the company.

A Trend Towards Enhanced Returns

The consistent execution of these buybacks illustrates Essity's proactive approach in creating value for its shareholders. By prioritizing share repurchases, the company underscores its confidence in future performance amidst an evolving marketplace.

Historically, stock buybacks have been favored by companies seeking to optimize their capital structure and ensure that profits are maximized for shareholders. As such, this decision not only drives up the demand for shares but also has the potential to increase earnings per share (EPS) by reducing the number of shares in circulation.

As of now, Essity's endeavors reflect a positive trajectory towards reinforcing investor trust, all while aligning with market expectations. The buyback's strategic execution, monitored diligently by financial experts, positions the company favorably amidst competitors.

In conclusion, as Essity continues to navigate through 2025, its active buyback program stands as a testament to its dedication toward enhancing shareholder value, solidifying its position as a responsible and forward-thinking organization within the sector.