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

Essity's Class B Shares Repurchase Program Progress

Essity Aktiebolag, a leading global hygiene and health company, has made significant strides in its share repurchase program during the fourth week of January 2025. Between January 20 and January 24, 2025, the company repurchased a total of 270,000 Class B shares under the framework of a buyback program previously approved by its Board of Directors.

The decision to repurchase shares is part of a larger SEK 3 billion buyback initiative, which was initially announced on June 17, 2024. This program is designed to continue until the Annual General Meeting (AGM) in 2025, aligning with both the EU Market Abuse Regulation (MAR) and the European Commission's Safe Harbour Regulation.

Financial Aspects of the Buyback

The share repurchases are financed through Essity's cash flow from current operations, following the distribution of its ordinary dividend. The company has expressed a commitment to ongoing share buybacks as an integral aspect of its capital allocation strategy.

Overview of Share Purchases

During the specified week, the repurchased shares were traded on Nasdaq Stockholm, with all transactions executed through Danske Bank acting on behalf of Essity. Here's a detailed breakdown of the purchases made throughout the week:

Weekly Totals

Over the course of the week, the average weighted price of shares reached 291.9607 SEK, culminating in a total transaction value of approximately 78,829,384 SEK. Additionally, since the initiation of the buyback program, Essity has acquired a total of 8,262,000 Class B shares, with an average price of 299.8870 SEK and an overall transaction value of about 2,477,666,189 SEK.

Shareholder Impact

The latest repurchases bring Essity’s total holding of treasury shares to 8,262,000 as of January 24, 2025. The company’s total share count currently sits at 702,342,489, which includes 59,973,654 Class A shares and 642,368,835 Class B shares. This strategic move not only reflects Essity’s strong financial health but also reinforces its commitment to enhancing shareholder value.

Future Directions

As the buyback program unfolds, investors and analysts alike will be observing Essity’s ongoing efforts to bolster its capital structure and shareholder returns. This proactive approach signals a strong confidence in the company’s long-term growth potential and serves as a vital component of its financial strategy as it navigates the competitive landscape of the hygiene and health sector.

For further information, investors may contact Sandra Åberg, Vice President of Investor Relations at Essity.

Essity’s sustained efforts in share buybacks highlight its dedication to creating value for shareholders while ensuring operational stability and financial growth in the future.