#Sweden #financial results #Stockholm #Essity #Magnus Groth

Essity Reports Strong Financial Performance for Q4 and Full-Year 2024

Essity, a global leader in hygiene and health, has announced impressive financial growth for the fourth quarter and the full year of 2024. With net sales for Q4 rising by 3.2% to SEK 37,805 million, the company's momentum is evident even in the face of ongoing global economic challenges. This positive trend is mirrored in their full-year performance, where they reported total sales of SEK 145,546 million, reflecting a decrease of 1.1% compared to the previous year.

Key Financial Metrics

Fourth Quarter Highlights

• - Organic growth reached 3.9%, driven by a volume increase of 1.7% and a price/mix contribution of 2.2%. Notably, excluding restructuring impacts, organic growth surged to 4.9%.
• - Earnings Before Interest, Taxes, and Amortization (EBITA) recorded a slight decline of 1%, totaling SEK 4,585 million.
• - The EBITA margin, excluding items affecting comparability, was 13.1%, down from 13.3% year-over-year.
• - Return on Capital Employed (ROCE) decreased to 15.8%, contrasted with 16.2% in the prior year.

Full Year Overview

• - For the full year, Essity showcased its strength with a 17% increase in EBITA, reaching SEK 19,475 million.
• - The EBITA margin, excluding IAC (items affecting comparability), improved by 1.2 percentage points to 14.0%.
• - Notably, profit for the period soared to SEK 21,048 million, a significant rise from SEK 9,796 million.

Continued Innovation

Essity's growth is not just numerical; it is also driven by a commitment to product innovation. The company has successfully launched several notable products in the market, catering to rising consumer demands in health and hygiene. Some key innovations include:

• - TENA Proskin Pants, enhancing skin health through superior absorption.
• - Cutimed Sorbion wound dressings, known for their effectiveness.
• - The introduction of Tork Optiserve Coreless, a state-of-the-art toilet paper system that complements Essity’s popular Tork PeakServe in the professional hygiene sector.

CEO's Vision and Transition

President and CEO Magnus Groth, who has helmed the company for nearly a decade, is set to leave Essity in 2025. Under his leadership, the company has not only achieved record sales but has also reinforced its market position with a strong emphasis on sustainability and innovative practices.

In his closing remarks, Groth declared, "Essity is in better shape than ever with remarkable financial results, and our strategies for accelerated profitable growth are aligning perfectly with market needs."

Looking Forward

Essity's board of directors has proposed a 6.5% dividend increase, raising it to SEK 8.25 per share, reflecting the firm’s strong financial health. Furthermore, the company has committed to enhance shareholder value through ongoing share buybacks financed by robust operational cash flow.

As we step into a new fiscal year, Essity remains poised to continue its legacy of innovation and market leadership within the hygiene and health sector. With new financial targets set and a solidified product portfolio, the company is on a promising path for 2025 and beyond.

For those interested in deeper insights into Essity's Q4 results, a live webcast featuring Magnu Groth alongside CFO Fredrik Rystedt will take place on January 23, 2025. This presentation is expected to provide further exploration of the company’s financial performance and strategic vision for the future.