Half Year 2026 Essity AB (publ) Earnings Call Transcript
Key Points
- Essity AB (ETTYF) reported positive organic sales growth driven by strong volume development across three of its four business units: health and medical, personal care, and professional hygiene.
- The company maintained healthy profit margins despite geopolitical challenges and cost inflation, with plans to implement price increases to offset these pressures.
- Essity AB (ETTYF) achieved significant sales growth in health and medical, particularly in wound care and incontinence products, supported by innovation and marketing efforts.
- The company is leveraging AI and digital solutions to enhance product development and operational efficiency, such as AI-powered digital engineering tools and AI integration in hygiene solutions for high-traffic venues.
- Essity AB (ETTYF) is actively investing in innovation across its brands, launching new and improved products in health and medical, personal care, and consumer tissue, which is expected to drive future growth.
- The consumer tissue segment faced challenges with lower sales volumes and pricing, attributed to spillover effects from 2025 and lower pulp prices.
- The acquisition of the feminine business in North America led to unexpected higher costs, impacting margins in personal care.
- Essity AB (ETTYF) anticipates significantly higher costs for COGS due to increased oil-based material and energy prices, which may affect profitability.
- The company faces intense competition and lower birth rates in the baby care segment, impacting sales in retailer-branded products.
- There is a lag in the visibility of price increases in the P&L, which may delay the compensation for rising costs and impact short-term financial performance.
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Today's second quarter 2026 results.
Our CEO, Ulrike Kollstrup will start by presenting the business highlights of the quarter. We will then turn to the financial targets and financial metrics, which will be presented by our CFO, Ferri Kristad.
After the presentations, we open up the line for questions.
We're looking forward to your questions and we ask you to please keep it to one question per call.
Now, I'm pleased to hand over to our CEO. Ulrika, the floor is yours.
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Thank you, Sandra.
And also from my side, welcome to this webcast and good morning everyone.
We delivered positive organic sales growth in the quarter, primarily driven by a continued good volume development.
The activities to strengthen our value propositions, to increase marketing investments and to make
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