Essity B 232.8 (-3.4 SEK) on 22-Sep-2023 17:29
Select region

Global Site

USA USA Germany Germany Mexico Mexico Netherlands Netherlands France France Sweden Sweden Italy Italy Spain Spain

Did you mean

    Advanced search

    Quick results

    View all results

    These might help

    Corporate press releases

    Corporate News

    Investor Relations Calendar

    Essity logo
    Brands

    Company

    We are a global, leading hygiene and health company

    Explore

    Essity at a Glance
    Purpose and Vision Our Beliefs Our History
    Business Areas
    Health & Medical Consumer Goods Professional Hygiene Market and Trends E-Commerce
    Breaking Barriers to Well-being
    Stories Partnerships Insights Events Articles
    Strategy
    Our Business Model Our Strategic Priorities
    Organization and Management
    Board of Directors Executive Management Team
    Corporate Governance
    Articles of Association General Meeting Nomination Committee Auditors Board and Committee Work Remuneration to the Board of Directors Remuneration Policy Public Policies
    Essity in the World

    Brands

    Brands

    Sustainability

    For the well-being of people and planet

    Explore

    Improving Well-Being for People and Societies
    Hygiene and Health Diversity, Equity and Inclusion Business Ethics and Human Rights Occupational Health and Safety Product Safety and Transparency
    Reducing Our Environmental Impact on the Planet
    Forest and Fiber Emissions Plastics Waste Water
    Sustainability Reporting, Governance and Data
    Essity’s Sustainability Publications Sustainability Governance Ratings and Recognitions Certifications
    Role in Society
    Partnerships and Collaborations Essity in the Spotlight Ways of Working Trade Associations and Policy Organizations Public Policy Development Positions Advancing the Knowledge
    Contact Us

    Innovation

    Innovation is deeply embedded in our company’s strategy and business model

    Explore Innovations

    Products and Solutions
    Digitalization
    Essity Ventures
    Latest Innovations

    Careers

    Careers

    Job Opportunities
    Work at Essity
    Commitment to Our Employees Diversity, Equity and Inclusion Learning and Development Why Choose Essity? Barrier Breakers
    Students and Graduates
    Graduates Students Internships Apprenticeships
    Life at Essity
    Women in Technology Making HerStory Career Stories
    Alumni Network
    Connect with Us
    Listen to us
    Total Rewards

    Investors

    We are a global, leading hygiene and health company

    Explore Investor

    Essity as an Investment
    Targets and Outcomes
    Essity Share
    Data per Share Ownership Dividend List of Analysts Trade Information Share Conversion Share Capital Development Indexes
    Financials
    Reports
    Interim Reports Annual Reports Prospectus
    Presentations and Webcasts
    Capital Market Events
    Innovation Webcast Business Area Web Presentations Capital Markets Day 2021 Investor Day 2019
    Debt Financing
    Debt Programmes Credit Rating Funding Sources Key Debt Ratios
    Essity Data
    Acquisitions and Divestments
    Investor Relations Calendar
    Investor Relations Contacts
    Subscribe

    Media

    Explore Press Center

    Press Releases
    News Features
    Subscribe
    Media Contact
    Local Media Contacts
    Essity in Social Media
    Home
    Media
    Press releases
    2022
    Media
    Press Releases News Features Subscribe Media Contact Essity in Social Media

    October 27, 2022

    Interim Report Quarter 3 2022

    JANUARY 1 – SEPTEMBER 30, 2022  
    (compared with the corresponding period a year ago)

    • Net sales increased 28.2% to SEK 112,339m (87,641)
    • Sales growth, including organic sales growth and acquisitions, amounted to 18.4%. Organic sales growth, excluding exchange rate effects, acquisitions and divestments, was 16.3%, of which volume accounted for 4.1% and price/mix for 12.2%.
    • Significant price increases were implemented, and further increases will be carried out
    • The company’s assets in Russia were impaired by approximately SEK 1.7bn. Furthermore, work is ongoing to exit the Russian market.
    • Operating profit before amortization of acquisition-related intangible assets (EBITA) amounted to SEK 7,097m
      (11,047)
    • Adjusted EBITA amounted to SEK 8,974m (10,603) and the adjusted EBITA margin amounted to 8.0% (12.1). Higher costs for raw materials, energy and distribution had a negative impact of 12.5 percentage points on the margin. The margin was positively impacted by higher selling prices, higher volumes and a better mix.
    • Return on capital employed amounted to 7.7% (13.8). Adjusted return on capital employed amounted to 9.2% (13.4).
    • Profit for the period was SEK 3,818m (7,592)
    • Earnings per share were SEK 4.78 (9.45) and adjusted earnings per share were SEK 8.50 (9.36)
    • Cash flow from current operations amounted to SEK 4,071m (4,744)
    • Acquisitions of Knix and Modibodi, two leading companies in leakproof apparel


    CEO’S COMMENTS

    Significant price increases offset cost inflation

    Essity’s net sales reached new record levels in the third quarter. We raised prices for our leading hygiene and health solutions by an average of 14.5% compared to the same period a year ago at the same time as we reported higher volumes in all business areas. Our price increases are offsetting the high cost inflation with a delay of approximately two quarters. We are continuing to invest in innovation and expansion of our offerings to promote a higher quality of life for customers and consumers with more climate-smart offerings, strong brands and increased e-commerce sales.

    During the third quarter of 2022, net sales increased 28.8% to approximately SEK 40.1bn. Sales growth, including organic sales growth and acquisitions, amounted to 17.3%, of which price/mix accounted for 14.8%, volume for 1.5% and acquisitions for 1.0%.

    EBITA amounted to SEK 2,784m and adjusted EBITA to SEK 2,990m, down 17% compared to the same period a year ago. The adjusted EBITA margin declined 4.0 percentage points to 7.5%. Cost inflation worsened further in the third quarter. Costs for raw materials, energy and distribution had a negative impact of 12.7 percentage points on the adjusted EBITA margin. We are addressing this through comprehensive price increases and energy price surcharges that will have an additional effect in the fourth quarter and in 2023. Despite significant price increases, we noted higher volumes in all three business areas. We are continuing to work at a high pace with efficiency improvements, energy saving measures and raw material rationalizations. Sales and marketing costs were higher during the quarter but decreased as a share of net sales. The adjusted return on capital employed was 8.4%. Earnings per share were SEK 2.23.

    The environmental footprint of our products is decreasing, and we are meeting consumer demands for solutions that are better for the user and the planet. During the quarter, we launched a climate-smart baby diaper under the leading brand Libero. Libero’s hybrid diaper consists of two parts: a washable textile diaper cover and an absorbent disposable insert. Online sales increased by nearly 20% in the third quarter and amounted to approximately SEK 5.7bn. Many initiatives are being implemented in the company to also increase our presence in the direct-to-consumer channel, including the acquisitions of Knix and Modibodi, two leading companies in leakproof apparel.

    A new Group organization will be effective from year-end 2022 entailing that the Group will have four business units in line with the company’s business areas. These four business units are Professional Hygiene, Health & Medical, Consumer Goods EMEA and Consumer Goods Americas. In parallel, a global unit, Digital & Business Services, will be established.

    Through a focus on innovation, strong brands, efficiency improvements, digitalization and sustainability, we are strengthening Essity’s competitiveness in leading hygiene and health solutions in an attractive and growing market. We are managing cost inflation through price increases.
     

    Magnus Groth

    President and CEO
     

    FUTURE REPORTS

    The Year-end report for 2022 will be published on January 26, 2023. Essity’s Annual Report for 2022 is intended to be published during the week starting February 27, 2023. In 2023, interim reports will be published on April 27, July 20 and October 26. 

     

    INVITATION TO PRESENTATION OF THE THIRD QUARTER REPORT FOR 2022

    In conjunction with publication, a telephone and web presentation will be held at 09:00 CET, where President and CEO Magnus Groth will present the report and answer questions.

    Presentation
    Date: Thursday, October 27, 2022
    Time: 09:00 CET

    Link to web presentation: https://essity.videosync.fi/2022-10-27-q3

    To participate by telephone, call: UK: +44 (0) 33 0551 0200, USA: +1 212 999 6659, SWE: +46 (0) 20 089 6377. Please call in well in advance of the start of the presentation. Indicate: "Essity Q3 Interim Report".  The presentation of the interim report will also be available on LinkedIn and Twitter.


    Stockholm, October 27, 2022
    Essity Aktiebolag (publ)

    Magnus Groth
    President and CEO
      

     
    For further information, please contact:

    Fredrik Rystedt, CFO and Executive Vice President, +46 8 788 51 31

    Johan Karlsson, Vice President Investor Relations, Group Function Communications, +46 70 511 15 81

    Joséphine Edwall Björklund, Senior Vice President, Group Function Communications, +46 8 788 52 34

    Per Lorentz, Vice President Corporate Communications, Group Function Communications, +46 73 313 30 55
     

    NB:
     
    This report has not been reviewed by the company’s auditors.
     
    This information is such information that Essity Aktiebolag (publ) is obligated to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. This report has been prepared in both Swedish and English versions. In case of variations in the content between the two versions, the Swedish version shall govern. The information was submitted for publication, through the agency of Karl Stoltz, Media Relations Director, at 07:00 a.m. CET on October 27, 2022.   

     

    The full report (PDF)
    Back to press releases

    Share this

    Essity logo
    Company Careers Brands Breaking Barriers Contact Us
    Privacy Policy Cookies Terms and Conditions

    Tel +46 8-788 51 00

    © Essity Aktiebolag (publ). Box 200, SE-101 23, Stockholm, Sweden