Essity reported higher sales volumes and resilient profitability in the second quarter of 2026, despite a volatile geopolitical environment and rising cost inflation. Net sales increased 2.6% year over year to SEK 35.1 billion, while organic sales grew 0.3%, driven by a 1.4% increase in volumes that was partially offset by lower price and product mix.
EBITA totaled SEK 4.1 billion, while EBITA excluding items affecting comparability (IAC) remained broadly stable at SEK 4.7 billion. The adjusted EBITA margin declined slightly to 13.4%, compared with 13.7% in the same period last year. Profit for the quarter reached SEK 2.7 billion, with earnings per share of SEK 3.94.
The company also launched a new SEK 3 billion share buyback program on May 12, 2026.
HIGHER VOLUMES SUPPORT PERFORMANCE
Organic growth was primarily driven by higher sales volumes and an improved product mix. Three of Essity’s four business areas, Health & Medical, Personal Care and Professional Hygiene, delivered positive results during the quarter.
Strong growth was recorded in Incontinence Products Retail, Feminine Care and Medical Solutions, while Incontinence Products Health Care also posted positive performance. Professional Hygiene benefited from increased volumes and a favorable product mix.
By contrast, Consumer Tissue sales declined due to lower prices and volumes. According to the company, the business area is focusing on securing profitable volumes and implementing price increases to offset higher production costs.
RESILIENT PROFITABILITY DESPITE CHALLENGES
Despite continued external challenges, Essity maintained healthy profitability during the quarter. Margins improved in the Health & Medical and Professional Hygiene segments, while Consumer Tissue and Personal Care experienced lower margins, largely due to inflationary pressures that have not yet been fully offset through pricing actions.
The company also reported that cost-saving initiatives across production, sales and administrative operations progressed according to plan.
INNOVATION AND AI DRIVE EFFICIENCY
Innovation remained a key component of Essity’s growth strategy during the quarter. The company introduced new products across all business areas, including additions to its TENA portfolio and new solutions for Medical Solutions and Professional Hygiene, aimed at enhancing customer value while improving operational efficiency.
Artificial intelligence also played an increasingly important role in product development and business operations. According to the company, AI helped shorten product development timelines, while a new group-wide AI procurement solution introduced during the quarter improved efficiency and data quality across the organization.
CLEAR PATH TOWARD PROFITABLE GROWTH
In the first half of 2026, Essity continued implementing measures designed to strengthen profitable growth and advance its long-term financial targets. These initiatives included a new organizational structure intended to increase agility and customer focus, continued execution of its cost-saving program, the acquisition within the Feminine Care business, and an ongoing strategic review of the Consumer Tissue segment.
Looking ahead, the company expects its organizational changes and efficiency improvements to generate positive results during the second half of the year. Management also plans to continue reducing costs, increasing investments in growth, accelerating innovation and optimizing its business portfolio.
The geopolitical situation remains a challenge, leading to higher costs for items such as raw materials and transportation. According to Essity, inflationary pressures continue to be managed through price increases.
“Our aim is to continue strengthening our market positions and expand in our most attractive categories and segments, thereby creating long-term value for customers, consumers and shareholders,” said Ulrika Kolsrud, President and CEO.
