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

Essity's Strategic Buyback of Class B Shares in Week 7, 2025

In a significant move to enhance shareholder value, Essity Aktiebolag (publ) reported the repurchase of 270,000 of its Class B shares between February 10 and February 14, 2025. This buyback is a crucial part of Essity's ongoing commitment to returning capital to shareholders, which was originally announced on June 17, 2024.

The buyback program, which has a sizable budget of 3 billion SEK, demonstrates Essity's proactive approach in managing its capital allocation strategy. This program will continue until the Annual General Meeting of 2025, adhering to the EU Market Abuse Regulation (MAR) and its Safe Harbour Regulation. Such regulations are in place to ensure transparency and fairness in the execution of share repurchases.

The details regarding the share buyback are meticulously recorded, highlighting the daily volume, average price, and total transaction value. During the specified week, Essity executed the repurchase of 54,000 shares each day, showcasing a consistent commitment to the buyback strategy. The average price per share fluctuated, reaching up to SEK 283.095 on February 14, with a total transaction value for the week amounting to SEK 75,819,456.

In total, the buyback program has seen Essity repurchase 9,072,000 Class B shares at an average price of SEK 298.107. With these transactions, the company's treasury shares now hold significant weight in the overall market structure, accounting for a considerable portion of their total shares outstanding. As of the last update, Essity's total shares stand at 702,342,489, including 58,973,654 Class A shares.

This systematic buyback is not only beneficial for shareholders but also aligns with Essity’s intention to make share buybacks a regular feature of their capital allocation process. The cash flow used for finance in executing these buybacks derived from ongoing operations and comes after the standard dividend payouts—demonstrating Essity's financial robustness and strategic foresight.

Such strategic financial moves reflect the company's dedication to upholding a rewarding relationship with its shareholders while simultaneously reinforcing market confidence in its operations. It is an important reminder of how strategic buybacks can serve as an effective tool for companies looking to enhance shareholder value, particularly in the fluctuating market environment.

Essity has partnered with Danske Bank to facilitate the purchases on Nasdaq Stockholm, ensuring that the transactions are handled with complete market integrity. The company, known for their leading position in hygiene and health products, continues to make strides in maintaining sustainability and value for their investors.

For further inquiries regarding this buyback plan, stakeholders can reach out to Sandra Åberg, Vice President of Investor Relations at Essity, via phone or email. This strategic maneuver not only signals confidence in the company’s future but also emphasizes the importance of shareholder engagement through proactive capital management.