Essity achieves record profit in 2024

Essity reported net sales of SEK 146 billion in 2024, with a record profit of SEK 20.3 billion, equivalent to a margin of 14%. The performance was driven by higher volumes, a better product mix and a reduction in the cost of goods sold.

“Essity is in better shape than ever and based on the profitable platform we have created over several years of working on structural improvements, we launched new, more ambitious financial targets during the year. We also launched a share buyback program. Our efforts to accelerate profitable growth have yielded results, and we grew strongly during the year in several of our most profitable categories and gained market shares. Sales for the year amounted to SEK 146bn and profit reached its highest level ever at SEK 20.3bn,” said President and CEO Magnus Groth in his message to the CEO.

The company has set new financial targets, with annual organic sales growth of more than 3% and an EBITA margin of more than 15%. In addition, it has initiated a SEK 3 billion Class B share buyback program, which will run until the 2025 AGM.

Essity reinforced its commitment to sustainability, with the goal of achieving net-zero greenhouse gas emissions by 2050 validated by Science Based Targets. The short-term targets include a 35% reduction in Scope 1 and 2 emissions by 2030, as well as updating the Scope 3 target to the same rate of reduction over the period.

In the field of innovation, the company launched the Tork Optiserve Coreless toilet paper system, improved TENA Proskin Pants products and Libero diapers, and improved Cutimed Sorbion dressings. Essity also finalized the sale of its 51.59% stake in the Asian company Vinda, for a total of around SEK 19 billion, strengthening its portfolio for higher-margin, lower-volatility products.

In 2024, the company was recognized for its sustainability initiatives, being named one of the 100 most sustainable companies in the world by Corporate Knights and included in S&P Global’s Sustainability Yearbook 2025. It also entered into a partnership with the World Economic Forum to promote menstrual health globally.

FINANCIAL RESULTS

Essity’s net sales totaled SEK 145.5 billion, broken down by business area as follows: Health and Medicine (20%), Consumer Goods (54%) and Professional Hygiene (26%). By category, the highlights were Consumer Tissue (32%), Professional Hygiene (26%) and Incontinence Products in retail (8%) and healthcare (12%).

Regionally, Europe accounted for 60% of sales, followed by North America and Latin America (both 17%) and Asia (2%). EBITA excluding non-recurring items was SEK 20.3 billion, with operating cash flow of SEK 17.2 billion. Organic sales growth was 0.2%, while the EBITA margin reached 14.0% and ROCE 17.6%.

“Our efforts to accelerate profitable growth have yielded results, and we grew strongly during the year in several of our most profitable categories and gained market shares. The full-year profit was the highest ever for Essity,” said Groth.

Check out Essity’s annual report in full: https://mb.cision.com/Main/15798/4113155/3294541.pdf