Essity Initiates Buyback of 270,000 Class B Shares as Part of Program

Essity's Strategic Buyback of Class B Shares: A Commitment to Growth



In a significant move to reinforce its commitment to shareholder value, Essity Aktiebolag (publ) has successfully repurchased a total of 270,000 Class B shares between March 3 and March 7, 2025. This initiative is part of a broader buyback program approved by its Board of Directors, showcasing Essity's proactive strategy in capital allocation and shareholder engagement.

Overview of the Share Buyback


The buyback aligns with Essity's previously announced SEK 3 billion buyback scheme which was unveiled on June 17, 2024. The program is set to continue until the Annual General Meeting in 2025, adhering to the regulations outlined by the EU Market Abuse Regulation (MAR) and the European Commission’s Delegated Regulation 2016/1052 (also known as the Safe Harbour Regulation).

During the designated week, Essity purchased shares at an aggregated daily volume, with the following detailed breakdown:
  • - March 3, 2025: 54,000 shares at SEK 298.0170
  • - March 4, 2025: 54,000 shares at SEK 305.1761
  • - March 5, 2025: 54,000 shares at SEK 303.2590
  • - March 6, 2025: 54,000 shares at SEK 297.9094
  • - March 7, 2025: 54,000 shares at SEK 297.8897
The total transaction value for the week reached approximately SEK 81.1 million.

Financing the Buyback Program


Funding for this share buyback comes directly from cash flow generated by Essity's current operations, following their regular dividend disbursement. This approach not only emphasizes the company's robust financial health but also highlights its intention to integrate share repurchases as a recurring element of capital allocation in the long term.

Current Holding Status


After these recent purchases, as of March 7, 2025, Essity's treasury shares totaled 9,882,000 Class B shares. In total, the company holds 702,342,489 shares, which consist of 58,973,654 Class A shares and 643,368,835 Class B shares.

Future Outlook


Essity remains dedicated to enhancing shareholder value through both this repurchase initiative and future buybacks, reflecting a firm belief in its ongoing growth and profitability. The company aims to establish a sustainable routine around share buybacks, instilling confidence in investors and affirming its commitment to responsible financial management.

Moreover, the execution of these transactions was coordinated through Nasdaq Stockholm via Danske Bank acting on behalf of Essity. Stakeholders can expect these strategic moves to play a key role in maintaining Essity's competitive position within its industry while returning value to its shareholders.

In conclusion, Essity's recent buyback program not only highlights its proactive stance on financial strategies but also sets a precedent for future share repurchases aimed at enhancing shareholder confidence and securing its growth trajectory.

For additional inquiries or information, stakeholders are encouraged to reach out to Sandra Åberg, Vice President Investor Relations, at +46 70 564 96 89 or via email at [email protected].

Topics Financial Services & Investing)

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