Essity reports record profits and strong growth in 2024

Essity, a hygiene and health company, posted an impressive performance in 2024, closing the year with strong growth and record profits. In the fourth quarter, net sales increased by 3.2%, totaling SEK 37.8 billion. Organic growth was 3.9%, driven primarily by higher volumes and improved price/mix. Excluding restructuring, organic growth was 4.9%. Operating profit, before extraordinary items (EBITA), saw a slight decline of 1%, totaling SEK 4.6 billion, while adjusted EBITA increased by 2%, reaching SEK 4.97 billion.

For the full year 2024, the company’s sales totaled SEK 145.5 billion, a 1.1% decrease compared to the previous year, but with modest organic growth of 0.2%. The company’s profit reached a record SEK 20.3 billion, a significant increase from SEK 9.8 billion in 2023. The adjusted EBITA margin also rose, from 12.8% to 14%. The company announced a 6.5% increase in the dividend to SEK 8.25 per share.

In a statement, CEO Magnus Groth said: “Essity is stronger than ever, and our focus on accelerated profitable growth is yielding results. For the full-year 2024, sales reached SEK 146 billion, and profit reached its highest-ever level at SEK 20.3 billion”. Groth highlighted that innovation and the expansion of the most profitable categories were key to the positive results. Recent innovations, such as TENA Proskin Pants and Cutimed Sorbion dressings, met the growing demand for hygiene and health products.

The CEO also commented on the positive impact of efficiency initiatives, which generated SEK 1.5 billion in cost savings. “2024 was a successful year. We achieved sales of SEK 146 billion and our highest profit ever at SEK 20.3 billion, corresponding to a 14% margin,” he said. The company, which also sold its stake in Vinda and increased investments in high-return categories, has already announced new financial targets to continue growth in 2025.

Groth, who has led Essity for 14 years, with 10 years as CEO, also revealed his planned departure in 2025. “Essity is now a global leader in hygiene and health, with strong brands and market positions, fantastic employees, and recognized sustainability work, reflected in profitable growth”, he stated.