Essity reports first quarter 2024 interim report

Essity reported a solid first quarter, with increased margins in all three of its business areas. Volume growth, excluding restructuring, was positive, supporting the company’s focus on increasing volume and gaining market share with good profitability. During the period, Essity received significant proceeds from the sale of Vinda shares, strengthening its balance sheet.

Volume growth was driven by innovation, although it was affected by restructuring measures in Professional Hygiene and the cancellation of contracts in Incontinence and Health Care Products. However, in Consumer Goods, the Feminine Care segment gained market share and Incontinence Products Retail continued its solid growth.

Margins increased in all business areas, maintaining effective pricing discipline despite lower raw material and energy costs. Essity also achieved significant cost savings through continued efficiency improvements.

In addition, Essity reinforced its solid financial position with strong operating cash flow. During the quarter, the company reported significant additional proceeds of approximately SEK 19 billion from the sale of shares in Vinda, which contributed to a robust and sustained operating cash flow. With these improved financial resources, Essity is well positioned to continue to innovate and expand its market presence.