Essity reports solid results in its interim report for the third quarter of 2025

Essity, a global leader in hygiene and health with operations in more than 150 countries, presented its interim report for the third quarter of 2025, highlighting positive organic growth, improved margins, and solid cash flow despite challenging market conditions.

During the quarter, net sales decreased by 4.5%, reaching SEK 34,638 million (SEK 36,274 million in 2024). Excluding currency translation effects, sales increased by SEK 322 million.
Organic sales growth was 0.9%, with a contribution of 0.2% from volume and 0.7% from price/mix.

EBITA amounted to SEK 5,152 million (SEK 5,130 million in 2024), while EBITA excluding IAC decreased by 1%, reaching SEK 5,056 million (SEK 5,097 million in 2024). Excluding currency effects, this indicator increased by 5%, up SEK 278 million.

The EBITA margin excluding IAC rose by 0.5 percentage points, reaching 14.6% (14.1% in 2024). ROCE was 17.9% (17.8%), and ROCE excluding IAC was 17.6% (17.7%).

Profit for the period increased to SEK 3,358 million (SEK 3,329 million in 2024), with earnings per share of SEK 4.86 (SEK 4.73 in 2024).

On October 23, 2025, Essity announced the launch of an organizational change and a cost-saving program aimed at strengthening the conditions for long-term profitable growth.

 

STATEMENTS FROM PRESIDENT AND CEO ULRIKA KOLSRUD

Kolsrud stated that the company’s efforts to drive growth and reduce costs are delivering results and that the quarter developed favorably within a complex environment. “Today we are launching measures that create better conditions for Essity to increase its growth rate in the future,” she said.

The executive highlighted the positive organic growth driven by price increases and the contribution of volumes and product range. All business areas showed growth, particularly in incontinence products, feminine care, and medical solutions. The tissue segment, however, recorded a slight contraction in Europe.

The gross margin improved thanks to higher volumes and prices, as well as reduced selling and administrative costs, reaching an EBITA margin of 14.6% and profit exceeding SEK 5 billion, accompanied by a robust cash flow.

INNOVATION AND STRATEGIC MEASURES

Essity reaffirmed that innovation remains its main growth driver. A recent example is the launch of TENA ProSkin Stretch Day and Night, a product designed to facilitate use for patients and healthcare professionals, helping to reduce continence care costs.

With the goal of accelerating profitable growth, Essity will implement an organizational change that decentralizes decision-making and strengthens accountability within each product category. This new structure seeks greater agility, efficiency, and customer focus.

At the same time, a cost-saving program will be launched, mainly focused on sales and administrative expenses, with expected annual savings of approximately SEK 1 billion by the end of 2026. The resources obtained will be reinvested in profitable volume growth.

According to the company, these measures support the goal of reaching more people with its hygiene and health products, capturing market share, and maximizing the potential of its portfolio.