Essity reports profitable growth in the third quarter of 2024 with record cash flow
Despite economic challenges, company strengthens market share and maintains high volumes across all categories
Essity, a global hygiene and health company, posted solid results in the third quarter of 2024, achieving profitable growth and record cash flow. The company’s net sales fell by 2.2%, totaling SEK 36.3 billion, but organic growth reached 1.9%, driven by increased sales volumes and a slight drop in price/mix. Excluding restructuring, organic growth reached 3.4%.
Earnings before interest, taxes, depreciation, and amortization (EBITA) rose by 47%, reaching SEK 5.1 billion, with a 14.1% margin. Return on capital employed (ROCE) increased to 17.8%, reflecting Essity’s operational resilience.
GROWTH AND MARKET STRENGTHENING WORLDWIDE
Essity continued to expand its market share and increase sales volumes across all regions where it operates. Growth in Health and Medical was led primarily by Europe and Latin America. Products like TENA Pants in the Incontinence segment saw high demand and improved margins, with strong acceptance from both caregivers and patients. In wound care, the Leukoplast and Cutimed brands also performed well. In the Consumer Goods segment, Essity continued to grow market share, especially in Europe and Latin America, through innovations and marketing investments.
In Professional Hygiene, growth was impacted by restructuring, though demand for premium products was robust. “All business areas contributed to the Group’s good profitability. Earnings were positively impacted by the economies of scale we achieved through higher volumes”, said President and CEO Magnus Groth.
CASH FLOW AND FUTURE OUTLOOK
The company reported record operating cash flow for the quarter, reducing its net debt and advancing its share buyback program, with approximately 4 million Class B shares acquired by the quarter’s end.
Looking ahead, the company plans to strengthen its position in the global hygiene and health market by investing in innovation, sustainability, and operational efficiency. During Capital Markets Day on December 3 in Spain, Essity will present an in-depth view of its operations and strategy to establish itself as the global leader in hygiene and health.
