Q1 2026 Essity AB (publ) Earnings Call Transcript
Key Points
- Essity AB (ETTYF) reported strong organic sales growth driven by volume increases and market share gains in its branded retail business.
- The company successfully launched a SEK3 billion share buyback program, aligning with its capital allocation strategy.
- Essity AB (ETTYF) completed a significant acquisition in North America, doubling its Personal Care sales in the region.
- The company reported strong cash flow and improved profit margins across most business units.
- Essity AB (ETTYF) made advancements in sustainability, inaugurating a new biomass boiler in France, reducing carbon footprint and natural gas dependency.
- Sales declined by 5.1% due to currency translation effects, despite an increase in constant currency sales.
- The incontinence care segment experienced weaker sales in healthcare due to financial pressures in healthcare systems.
- Consumer Tissue saw a decline in organic sales, particularly in Europe, due to lower volumes and sales prices.
- The acquisition of the Feminine Care business in North America initially contributed negatively to the group's margin.
- The company anticipates higher costs in the coming quarters due to geopolitical factors and expects to adjust pricing accordingly.
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Good morning, and welcome to Essity's presentation of the Q1 2026 results. Here to take us through the highlights of the quarter, we have our CEO, Ulrika Kolsrud, and our CFO, Fredrik Rystedt. After their presentation, you have the opportunity to engage directly with us. (Operator Instructions)
Now enough of me, let's get started. Ulrika, please take us through the quarter.
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Thank you, Sandra. And also from my side, welcome to this webcast. We started the year with organic sales growth coming from volume growth, and we continued to win the relative game, strengthening market shares in our branded business in retail. We furthermore strengthened our profit margins and delivered a strong cash flow.
Then besides these solid results, we had three major events in the quarter, the decision to launch a new share buyback program
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