Essity reports Q2 sales growth, profitability resilient amid cost inflation

Essity reported a net sales increase of 2.6% to SEK 35,061 million in the second quarter of 2026. The company's organic sales growth was 0.3%, driven by volume increases despite a negative impact from price and mix. This performance occurred within a volatile external environment characterized by ongoing cost inflation.

EBITA (Earnings Before Interest, Taxes, and Amortization) for the second quarter was SEK 4,105 million, a decrease from SEK 4,628 million in the prior year. EBITA excluding acquisition-related intangible amortization (IAC) remained stable at SEK 4,685 million compared to SEK 4,693 million previously. The EBITA margin excluding IAC saw a slight decrease of 0.3 percentage points to 13.4%.

President and CEO Ulrika Kolsrud stated that higher volumes and an improved product mix contributed to sales growth. The Health & Medical and Professional Hygiene segments reported higher margins, while Consumer Tissue experienced a decline due to cost inflation that has not yet been fully offset by price increases. Essity is implementing measures to secure profitable volumes and adjust pricing within the Consumer Tissue business.

The company continues to focus on innovation, leveraging technologies such as AI to enhance product development and operational efficiency. Essity also commenced a new share buyback program for SEK 3 billion during the quarter, indicating a continued focus on shareholder returns amidst strategic initiatives aimed at accelerating progress towards financial targets.