Half Year 2025 Essity AB (publ) Earnings Call Transcript
Key Points
- Essity AB (ETTYF) reported a positive organic sales growth of 1.9%, driven primarily by strong pricing performance.
- The company experienced strong growth in strategic categories such as Feminine Care, Incontinence Care retail, and Wound Care Lymphology.
- Essity AB (ETTYF) marked the 17th consecutive quarter of growth for its Medical Solutions segment.
- The company was recognized for its sustainability performance, receiving awards from CDP and being confirmed as a constituent of the FTSE4Good Index Series.
- Essity AB (ETTYF) introduced innovative products, such as extending the battery life of Tork Matic to six years, setting a new industry standard.
- Essity AB (ETTYF) faced lower demand in some segments due to constrained consumer spending amid a weak economic climate.
- The company's adjusted EBITA margin declined to 13.7% compared to the same quarter last year, impacted by limited volume growth and increased SG&A costs.
- The Baby Care segment continued to experience weak development due to low birth rates and high competitive pressure.
- Professional Hygiene saw lower demand, particularly in the hotel and restaurant sector in North America, leading to declining volumes.
- Essity AB (ETTYF) faced challenges in some markets, such as the UK and Colombia, due to increased competition and government funding restrictions.
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Good morning, and welcome to Essity's presentation of the Q2 results. My name is Sandra Aberg. I'm Head of Investor Relations here at Essity. We will begin with a summary of the key business highlights from our CEO, Ulrika Kolsrud, followed by the financials and a closer look at the key metrics presented by our CFO, Fredrik Rystedt. (Operator Instructions)
With that, let me hand over to our CEO, Ulrika, welcome.
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Thank you, Sandra, and welcome also from my side to this presentation. We can summarize the quarter with that we delivered a positive organic sales growth and the result of SEK4.7 billion. And the fact we have this stable development in a quite challenging market environment is a testament to our resilience and to the strength of our broad portfolio of essential hygiene and health products.
The organic sales
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