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

Essity's Recent Buyback of Class B Shares: Week 9, 2025

Essity Aktiebolag has made headlines in the financial world with its recent buyback of Class B shares, enrolled within the framework of a substantial SEK 3 billion share repurchase program. Announced on June 17, 2024, this initiative aims to augment shareholder returns while being compliant with EU regulations.

Between February 24 and February 28, 2025, Essity acquired a total of 270,000 Class B shares. This strategic move reflects the company’s ongoing commitment to returning value to its investors. The shares were purchased utilizing cash flow generated from current operations, demonstrating that Essity is leveraging its profitability to bolster shareholder equity.

Detailed Breakdown of the Buyback

The repurchase actions were meticulously tracked, revealing that an equal number of 54,000 shares were bought back each day over the five-day period. Here is a summary of the transactions:

• - February 24, 2025: 54,000 shares at an average price of SEK 290.76, totaling SEK 15.7 million.
• - February 25, 2025: 54,000 shares at a slightly higher average price of SEK 294.16, amounting to SEK 15.88 million.
• - February 26, 2025: The trend continued with shares bought at SEK 296.51, bringing cumulative spending to SEK 16.01 million.
• - February 27, 2025: Average price rose to SEK 297.51, with a total value of SEK 16.07 million for that day.
• - February 28, 2025: Shares were bought at SEK 297.77, rounding up the total to SEK 16.08 million.

Overall, during Week 9 of 2025, the accumulated buyback amounted to a significant SEK 79.74 million. With these latest acquisitions, the total number of Class B shares repurchased under this ongoing buyback program reached an impressive 9,612,000 shares, valued at SEK 2.86 billion.

The Rationale Behind the Buyback

Essity's share buyback strategy underscores its intention for long-term capital allocation, specifically emphasizing maintaining a favorable liquidity position while returning excess cash to shareholders. The buybacks will not only enhance shareholder value but are also expected to lead to an uplift in earnings per share as the number of outstanding shares decreases.

According to Sandra Åberg, Vice President of Investor Relations, the buyback is more than just a financial maneuver; it reflects Essity's robust operational performance and commitment to delivering value. By maintaining a solid cash flow even after disbursing ordinary dividends, Essity aims to cultivate a culture of continual investment in shareholder value.

Compliance with Regulations

Essity's buyback operations were conducted under strict compliance with the EU Market Abuse Regulation (MAR) and the European Commission's Safe Harbour Regulation. This ensures transparency and fairness in the transactions, protecting both the company and its investors. All buybacks were executed on Nasdaq Stockholm via Danske Bank, further legitimizing the process.

Future Prospects

As the buyback program continues until the 2025 Annual General Meeting, investors are keen to observe how this strategy plays out in the broader context of Essity’s growth plans. The firm is positioned not only to enhance shareholder value but also to reinvest in business prospects that will drive future growth.

In conclusion, as Essity embarks on this strategic buyback initiative, it not only reaffirms its commitment to its shareholders but also sets a precedent for responsible capital allocation in the future. Investors eagerly await the long-term impacts of these actions on their portfolios and the company’s market standing.