#Sweden #Stockholm #Class B shares #Essity #stock buyback

Recent Action in Share Buyback Program

Essity Aktiebolag, the global leader in hygiene and health products, has taken significant steps towards enhancing shareholder value through its recent buyback program. Between December 9 and December 13, 2024, Essity executed the repurchase of a total of 270,000 Class B shares as part of its ongoing commitment to capital allocation strategies.

The buyback is part of a larger initiative announced earlier in June 2024, involving a total allocation of SEK 3 billion. The program aims to conclude by the time of the 2025 Annual General Meeting, adhering to the guidelines set by the EU Market Abuse Regulation (MAR) and the European Commission's Delegated Regulation 2016/1052 (Safe Harbour Regulation).

Financial Framework and Purchase Details

Essity's strategy for this buyback is rooted in utilizing cash flow generated from current operations, especially succeeding the company's regular dividend payments. The emphasis is on establishing share buybacks as a recurring element in their financial planning moving forward. This move underscores the company's dedication to ensuring a robust return on investment for shareholders.

Shares were purchased under specific conditions and monitored closely to ensure compliance with market regulations. The transactions were executed through Nasdaq Stockholm with Danske Bank acting on behalf of Essity. Here’s a detailed look at the weekly share purchasing activity:

Summary of Transaction Results

The total volume within this week of buybacks reached 270,000 shares, with a weighted average price of 301.26 SEK, totaling approximately 81.34 million SEK spent on these transactions. This cumulative buyback adds to the ongoing efforts of Essity, which has now successfully repurchased a total of 6,966,000 Class B shares during this buyback program at an average price of 300.91 SEK, amounting to around 2.09 billion SEK.

As of December 13, 2024, the company now holds a total of 6,966,000 treasury shares, further solidifying its capital management strategy. The overall number of shares in Essity amounts to 702,342,489, which includes both 60,412,986 Class A shares and 641,929,503 Class B shares.

Future Outlook

Essity remains committed to its shareholders, ensuring consistent returns through strategic maneuvers such as this buyback program. The ongoing assessment of capital allocation will guide future transactions as the company continues to prioritize shareholder value and operational efficiency. For questions or further information, stakeholders and interested parties can contact Sandra Åberg, Vice President of Investor Relations at +46 70 564 96 89 or via email.

This buyback initiative marks a proactive approach by Essity in navigating the complexities of capital markets while fostering sustained growth and profitability for its shareholders.