Q3 2024 Essity AB (publ) Earnings Call Transcript
Key Points
- Essity AB (ETTYF) reported profitable growth with higher market shares and volumes across all business areas.
- The company achieved a record high cash flow and improved EBIT margins.
- Essity AB (ETTYF) had its net zero emissions target validated by the Science Based Targets initiative, showcasing its commitment to sustainability.
- The health and medical segment showed strong profitability with a margin of 19.4%, driven by innovation and strong market positions.
- The company is focusing on expanding in emerging markets, particularly in Latin America, to drive future growth.
- Organic sales growth was only 1.9%, with some areas like professional hygiene showing negative growth due to restructuring impacts.
- Currency translation effects negatively impacted earnings, with only 3% of sales in Sweden.
- Raw material costs, particularly pulp, had a significant negative impact on results.
- Consumer tissue faced challenges with negative price mix and higher raw material costs, affecting profitability.
- The company is facing a demand for early repayment of bonds, which it believes is unfounded, but it adds uncertainty to its financial situation.
Good morning and very welcome to 's presentation of the Q3 results. My name is Sandra Obe Im head of Investor relations and I will soon hand over to our CEO minus G and our Co Fredrik Maus and Fredrik will take us through the highlights of the quarter. And after that, we are very much looking forward to your questions with that. Let's move on to the fun part. Magnus. Please summarize the quarter for us.
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Thank you, Sandra and Good morning, everyone and again, welcome to this press conference where we are going to talk about the third quarter for and overall, we have showed profitable growth, higher market shares, higher volumes in all our business areas, excluding restructuring, a continued very good pricing discipline and sequentially higher prices, strong ebita and higher margins and a record high cash flow. And we had our net zero emissions target validated by the science based target initiative. So to summarize is in better shape than ever.
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