Full Year 2024 Essity AB (publ) Earnings Call Transcript
Key Points
- Essity AB (ETTYF) achieved a record operating profit in 2024, surpassing SEK20 billion for the first time.
- The company reported strong cash flow generation and maintained a solid balance sheet.
- Essity AB (ETTYF) saw a turnaround in market shares, with improving market shares year over year.
- The company announced a proposed dividend increase to SEK8.25, reflecting a 6.5% rise due to strong performance.
- Essity AB (ETTYF) has ambitious sustainability targets, with significant progress in reducing greenhouse gas emissions by 27% since 2016.
- Net sales were slightly down due to the divestment of Russia and the strengthening of the Swedish krona.
- Consumer Tissue margins were negatively impacted by the strong appreciation of the dollar in the fourth quarter.
- Distribution and energy costs did not decrease as expected, affecting profitability.
- Operating cash flow in Q4 was lower than typical due to high accounts receivable from strong sales at the end of the quarter.
- The company faced challenges in the Consumer Goods segment, with lower margins primarily related to currency fluctuations and cost pressures.
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Hi, and welcome. My name is Sandra Ãberg, I'm Head of Investor Relations. On today's agenda, we will summarize the full year of 2024, a year that we here at Essity are very proud of and very happy with. We will also take you through the highlights of the Q4 report, and we will share our priorities for 2025 to enable accelerated profitable growth.
In the end of the presentation, we will give you the opportunity to ask questions. We will also be road showing here in Stockholm this afternoon and next week in London. So if you would like to meet with us, please reach out. Here to present are my colleagues, Magnus Groth, our CEO; and Fredrik Rystedt, our CFO. I will now hand over to Magnus, who will start by summarizing the full year 2024. Please, Magnus, welcome.
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Thank you, Sandra, and good morning, everyone.
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