Higher volumes and resilient profitability in a volatile external environment
Quarter 2, 2026
- Net sales increased 2.6% to SEK 35,061m (34,185)
- Organic sales growth amounted to 0.3%, of which volume accounted for 1.4% and price/mix -1.1%.
- EBITA amounted to SEK 4,105m (4,628)
- EBITA excl. IAC amounted to SEK 4,685m (4,693)
- EBITA margin excl. IAC decreased 0.3 percentage points to 13.4% (13.7)
- ROCE amounted to 14.0% (16.7) and ROCE excl. IAC was 16.0% (16.9)
- Profit for the period was SEK 2,693m (3,053)
- Earnings per share was SEK 3.94 (4.39)
- A new share buyback program for SEK 3bn commenced on May 12, 2026
CEO’S COMMENTS
Higher volumes and an improved product mix resulted in sales growth for the quarter. Our focus on growth by developing our offerings, investing in marketing and selective price adjustments continued, and we reported good growth in Health & Medical, Personal Care as well as Professional Hygiene. Profitability was healthy even though the geopolitical situation causes higher cost inflation. The execution of launched initiatives is continuing, with the aim to accelerate progress towards the company’s financial targets.
Higher volumes
Organic sales increased during the quarter, driven by volume growth and positive development of the product mix. Three of the four business areas – Health & Medical, Personal Care and Professional Hygiene – contributed positively. Growth remained strong in Incontinence Products Retail, Feminine Care and Medical Solutions. A positive performance was also reported for Incontinence Products Health Care, and Professional Hygiene grew as a result of higher volumes and a favorable product mix. Sales for Consumer Tissue declined due to lower prices and volumes. The business area is currently working intensively to secure profitable volumes and increase prices to address the cost headwinds that emerged during the quarter.
Resilient profitability
Profitability remained resilient in a volatile and continued challenging external environment. We reported higher margins for Health & Medical and Professional Hygiene, while margins in Consumer Tissue and Personal Care declined. Consumer Tissue was negatively impacted by higher cost inflation, which we have not yet offset with price increases.
The cost savings in costs of goods sold as well as in sales and administration were achieved according to plan.
Innovation for customer value and efficiency
Innovation is a key driver of our competitiveness and growth. During the quarter, we launched new products across all business areas, including further developments in the TENA product range and new solutions in Medical Solutions and Professional Hygiene, which both enhance customer value and improve cost efficiency. AI played a role in the launches, for example by shortening product development lead times. AI is increasingly being adopted to drive sales and improve efficiency across the value chain. One example of this is an agentic Group-wide AI solution for procurement deployed during the quarter that is helping to increase efficiency and improve data quality.
Clear path forward
During the first half of 2026, we took key steps to strengthen the conditions for profitable growth and accelerate progress toward our financial targets. Our new organizational structure has made us more agile and customer-focused, while actions taken under our cost savings program is unlocking resources for investments in our strong brands. We have also taken important steps to optimize our portfolio and strengthen value creation through the acquisition in Feminine Care and the strategic review of Consumer Tissue. In parallel, we have continued to develop our offering through innovations that enhance customer and consumer preference.
In the second half of the year, we expect to see positive effects from the new organizational structure and the implemented efficiency improvements. We continue to improve our operations with an emphasis on further cost reductions, increased investments in growth, a sharpened innovation agenda and continued portfolio optimization.
The geopolitical situation remains, leading to higher costs for items such as input goods and transportation. As always, cost inflation is being 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.
Ulrika Kolsrud, President and CEO
Invitation to presentation
President and CEO Ulrika Kolsrud and Executive Vice President and CFO Fredrik Rystedt will present the report at a live webcast and teleconference at 09:00 a.m. CET on July 16, 2026.
Link to the live presentation, which can also be viewed afterwards:
https://essity.videosync.fi/2026-07-16-q2
Contact information for conference call with the possibility to ask questions:
UK: +44 (0) 33 0551 02 00
USA: +1 786 697 35 01
SWE: +46 (0) 8 505 204 24
Please call in well in advance of the start of the presentation. Indicate: “Essity”.
For additional information
Fredrik Rystedt, Executive Vice President and CFO, tel: +46 (0) 8 788 51 31
Sandra Åberg, Vice President Investor Relations, tel: +46 (0) 70 564 96 89
Per Lorentz, Vice President Corporate Affairs, tel: +46 (0) 73 313 30 55
NB: This information is such information that Essity Aktiebolag (publ) is obligated to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. Both a Swedish and an English version of this report has been prepared. In case of variations in the content between the two versions, the Swedish version shall govern. The information was submitted for publication, through the agency of Karl Stoltz, Public Relations Director, at 07:00 a.m. CET on July 16, 2026.
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