Essity presents its first quarter 2026 report

Essity reported a solid start to 2026, with positive volume trends and improved profitability in the first quarter, despite a decline in reported net sales.

Net sales amounted to SEK 33,177 million, representing a decrease of 5.1% compared to the same period last year. However, excluding currency translation effects, net sales increased by SEK 528 million. Organic sales growth reached 0.4%, driven by a 1.1% increase in volume, while price/mix had a negative impact of -0.7%.

During the quarter, the company completed the acquisition of Edgewell’s feminine care business in North America, consolidated on February 2, 2026, contributing 1.1% to group net sales.

EBITA totaled SEK 4,448 million, down 6%, while EBITA excluding items affecting comparability declined 2% to SEK 4,603 million. Adjusted for currency effects, this metric increased by 5%, equivalent to SEK 236 million. The EBITA margin excluding items affecting comparability improved by 0.4 percentage points to 13.9%.

Return on capital employed (ROCE) was 15.8%, while adjusted ROCE stood at 16.3%. Profit for the period amounted to SEK 2,901 million and earnings per share reached SEK 4.23.

Following the end of the quarter, the company announced a new share buyback program totaling SEK 3 billion, expected to begin no earlier than May 11, 2026.

Operationally, the company reported a positive volume trend, with market share gains in Personal Care driven by continued growth in incontinence products and feminine care. Professional Hygiene also showed volume-related growth, supported by targeted initiatives and a more stable North American market. Health and Medical reported positive development, particularly in medical solutions, while Consumer Tissue recorded a decline in sales, partly due to lower private label volumes, although the company’s own brands performed well.

 

Gross margin increased as a result of higher volumes, lower cost of goods sold and strong pricing discipline. Selling and administrative expenses rose slightly, mainly due to increased marketing investments to support growth.

During the quarter, Essity continued to focus on innovation, with product launches including a softer version of Libero diapers, updates to the TENA range in North America, and the introduction of coreless household towels under the Zewa brand in Germany. In feminine care, the company strengthened its offering in the fast-growing menstrual pants segment, particularly targeting teenagers.

The acquisition of Edgewell’s business in North America represents a strategic step to expand in high-return categories and attractive markets, significantly increasing the company’s presence in personal care in the region.

The company also reported higher operating cash flow, further strengthening its balance sheet.

The quarter was marked by considerable geopolitical turbulence. However, the company highlighted its resilience, supported by a broad portfolio of essential hygiene and health products, as well as operational flexibility with strong local and regional supply chains.

According to Ulrika Kolsrud, President and CEO, the company remains focused on accelerating growth, strengthening its market position and advancing toward its financial targets.

Essity also announced that it will host its Capital Markets Day on May 7 in Gothenburg, where it will present key strategic initiatives.