Essity's Weekly Buyback of Class B Shares Marks Continued Commitment to Shareholder Returns
Essity's Class B Share Repurchase: A Strategy for Shareholder Returns
Between December 2 and December 6, 2024, Essity Aktiebolag, a prominent name in the hygiene and health industry, executed a strategic repurchase of 270,000 of its own Class B shares. This move aligns with the company's ongoing buyback program approved by its Board of Directors. The repurchase signifies Essity's dedication to maximizing shareholder value amidst a favorable financial backdrop.
Overview of the Buyback Program
Essity announced a robust SEK 3 billion buyback program on June 17, 2024, with a timeline extending until the 2025 Annual General Meeting. This systematic buyback initiative is structured in compliance with the EU Market Abuse Regulation (MAR), ensuring that all transactions are carried out transparently and under safe regulatory frameworks.
The recent share buybacks were funded through operational cash flow post-ordinary dividends, reflecting the company's sound financial health and willingness to incorporate share repurchases as a recurring aspect of its capital allocation strategy. The repurchased Class B shares are part of a larger commitment to maintain a strong capital structure while rewarding shareholders.
Transaction Details
The following table summarizes the share repurchase details during the specified week:
| Date | Shares Purchased | Avg Price (SEK) | Daily Transaction Value (SEK) |
|---|---|---|---|
| -- | ---- | --- | --------- |
| Dec 2, 2024 | 54,000 | 302.53 | 16,336,706 |
| Dec 3, 2024 | 54,000 | 304.40 | 16,437,605 |
| Dec 4, 2024 | 54,000 | 304.95 | 16,467,559 |
| Dec 5, 2024 | 54,000 | 306.56 | 16,554,332 |
| Dec 6, 2024 | 54,000 | 308.99 | 16,685,438 |
Over the reported week, Essity purchased a total of 270,000 shares at an average price of SEK 305.49 per share, aggregating a total transaction value of SEK 82,481,640. Since the buyback program's inception, Essity has successfully repurchased 6,696,000 shares, reflecting its robust commitment to returning capital to shareholders.
Essity's portfolio now comprises a total of 702,342,489 shares, consisting of 60,412,986 Class A shares and 641,929,503 Class B shares as of December 6, 2024. The financial maneuvers displayed by Essity underscore their strategic focus on maintaining an optimal capital structure while enhancing shareholder value through consistent buyback programs.
Conclusion
Essity's recent buyback of its Class B shares encapsulates a broader strategy aimed at reinforcing shareholder value and underscores the company's resilience in navigating market dynamics. As the program progresses, investors can anticipate continued efforts from Essity to enhance returns and solidify its market standing through prudent financial management and shareholder-focused strategies. For further inquiries, investors are encouraged to reach out to the Investor Relations team at Essity.
Contacts
Sandra Åberg, Vice President Investor Relations
Phone: +46 70 564 96 89
Email: [email protected]
Topics Financial Services & Investing）
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