Essity launches SEK 3 billion share buyback program

Share buyback programs have become a widely used financial tool for companies seeking to optimize capital structure, enhance shareholder returns, and efficiently manage available cash flow. These initiatives are often integrated into long-term strategies aimed at strengthening financial performance.

In this context, Essity announced the launch of a new share buyback program totaling SEK 3 billion. The decision was approved by the Board of Directors under the authorization granted at the Annual General Meeting held on March 26, 2026.

According to the company, the program will focus on repurchasing Class B shares and is set to begin no earlier than May 11, 2026, running at the latest until the 2027 Annual General Meeting. The initiative will be funded through cash flow generated from operations after the payment of ordinary dividends, with the ambition of maintaining share buybacks as a recurring component of its capital allocation strategy.

The transactions will be carried out on Nasdaq Stockholm in accordance with applicable listing rules, as well as the EU Market Abuse Regulation and the related delegated regulation under the safe harbor framework.

 

Regarding the program conditions, the company stated that shares will not be acquired at a price exceeding the higher of the most recent independent transaction price or the highest current independent bid. All purchases will be settled in cash.

Under the existing authorization, the total number of shares repurchased may not exceed 10 percent of the total shares outstanding at any given time. The company also intends to cancel the shares acquired under the program.

Essity currently has a total of 681,945,171 shares outstanding, including 57,200,658 Class A shares and 624,744,513 Class B shares. In addition, the company holds 1,240,123 Class B shares in treasury. Information regarding repurchases under the program will be disclosed on a weekly basis.