Essity has announced “favourable” third quarter results as it launches a cost savings programme across the business to create better conditions for profitable growth.
Net sales decreased 4.5% to SEK34,638m (36,274) in its third quarter results, while excluding currency translation effects net sales increased SEK322m.
EBITA increased to SEK5,152m (5,130) and profit for the period, total operations, increased to SEK3,358m (3,329).
Ulrika Kolsrud, President and Chief Executive, said: “Our efforts to drive growth and reduce costs have yielded results and the third quarter developed favourably in continued challenging market conditions.
“In parallel, we are today launching measures aimed at creating better conditions for profitable growth – an organisational change and a cost savings programme.”
All business areas reported positive organic growth: growth remained strong in Incontinence Products Retail, Feminine Care and Medical Solutions, while Consumer Tissue noted negative growth, driven by lower volumes in Europe.
“The company’s gross margin improved as a result of higher volumes and prices, in addition to lower costs of goods sold, including cost savings,” she added.
“We have reduced sales and administration costs compared with the second quarter of this year, and are delivering a strengthened margin of 14.6%, profit of more than SEK5bn and strong cash flow.”
Organisational changes:
Kolsrud added: “Today, I am launching measures that create better conditions for Essity to increase its growth rate going forward.
“With the aim of increasing our growth rate, and considering the current economic climate, we are launching a number of measures today to faster achieve the company’s financial targets.”
Mainly encompassing sales and administration costs excluding marketing costs, the programme is expected to generate annual cost savings of approximately SEK1bn, with full effect by the end of 2026.
The organisational change will contribute to reducing costs with the savings mainly invested in profitable volume growth.
Kolsrud said: “These measures will contribute to our goal of reaching more people with our leading hygiene and health products, capturing market shares and maximising the potential of our product portfolio.
“We’re launching measures to create better conditions for Essity to increase its growth rate going forward and to faster achieve our targets.”
The new organisation will consist of the business areas Health & Medical, Personal Care, Consumer Tissue, and Professional Hygiene, with clear overall responsibility in each business area for innovation, production, marketing and sales.
The current Consumer Goods business area will be split into Personal Care and Consumer Tissue.
Essity’s global units Global Marketing & Innovation and Global Supply Chain will be integrated into the four business areas.
Tuomas Yrjölä, President Global Marketing & Innovation, has been appointed President Personal Care.
Volker Zöller, President Consumer Goods EMEA, has been appointed President Consumer Tissue.
Pablo Fuentes has been appointed President Professional Hygiene in the new organisation.
The changes will apply as of 1 January 2026.
