Swedish company Essity's sales up 0.4% in Q1 FY25

Essity began the year with positive organic sales growth in all business areas, stable profitability and continued strong cash flow. In these turbulent times, Essity’s strength becomes clear – with production close to its customers and consumers, it delivered leading hygiene and health solutions that are needed every day.

All business areas reported positive organic sales growth for the first quarter of 2025 compared to the same period in 2024. Growth was primarily driven by higher prices. In health and medical and consumer goods, volumes were higher, while volumes were lower in professional hygiene, mainly due to lower demand in North America.

During the quarter, the company achieved product superiority of above 70 per cent, meaning that customers and consumers rate Essity’s products as the best in the market for more than 70 per cent of the company’s offerings, the company said in a press release.

Earnings (EBITA excluding IAC) were slightly lower, mainly due to the higher cost of goods sold while higher sales prices increased earnings. EBITA margin excluding IAC was lower compared with the first quarter of 2024 but higher compared with the fourth quarter. Cash flow continued to develop strongly, mainly due to the robust earnings, and the company’s financial position is good.

“Essity has sales in approximately 150 countries, but we expect that the changed trade tariffs will only have a limited impact on the company. Our production is close to our customers and consumers, with approximately 70 production facilities worldwide. For the parts of our operations that are nonetheless affected, we are reviewing our flows and actively striving to optimise our production and supply chain,” said Magnus Groth, president and CEO.

“We remain committed to our ambition to accelerate the company’s profitable growth during the year. We will achieve this through value-creating innovation, strong brands, and efficiency improvements and by continuing our successful sustainability work,” added Groth.

ALCHEMPro News Desk (RR)