Essity (ESSITY) CMD 2026 summary

Strategic direction and portfolio review

• Initiated a strategic review of the Consumer Tissue business, considering alternatives such as separation, divestment, or spin-off, with a 6–12 month assessment period and no fixed timeline for completion, aiming to maximize value creation.

• Accelerating portfolio shift through targeted M&A in Feminine Care, Wound Care, Continence Care, Professional Hygiene, and geographic expansion, especially in North America and emerging markets.

• Emphasizing a shift toward higher value-added, higher return products and categories, supported by a decentralized structure with end-to-end accountability and clear financial goals for each business area.

• Triple-track strategy in Consumer Tissue: own brands, retailer brands, and private label, leveraging strong retailer partnerships.

• SG&A cost-saving program underway to free up resources for growth investments, alongside a completed M&A expanding feminine care into North America.

Financial performance and targets

• Group targets set at >3% organic growth and >15% profit or EBITA margin (excl. IAC), with clear financial goals and targeted initiatives per business area.

• Achieved a 50% increase in earnings per share from 2021 to 2025, with a 6% dividend increase and ongoing share buybacks; dividend per share up 25% vs 2021; recurring share buybacks totaling SEK 9bn (2024-2026).

• Outperformed peers in total shareholder return (+10% 2021-YTD 2026), with a strong balance sheet and leverage ratio/net debt to EBITDA around 1.0.

• Margin volatility has been reduced through price agility, premiumization, and portfolio optimization, now lower than key competitors.

• Planned increase in capital expenditure to 6% of sales to support growth, especially in high-return segments like feminine care and incontinence.

Business area growth strategies

• Health & Medical aims for 3–4% organic sales growth and >19% EBITDA/EBITA margin by focusing on high-return segments, expanding continence care, advanced wound care, and lymphology, supported by selective M&A.

• Personal Care targets 5–6% organic sales growth and >16% EBITDA/EBITA margin, leveraging strong brands, innovation, digital engagement, and North American expansion, with a focus on premiumization and new formats.

• Consumer Tissue seeks 1–2% organic sales growth and >12% EBITDA/EBITA margin, emphasizing branded and retail brand growth, supply chain efficiency, and reduced margin volatility through contract and portfolio management.

• Professional Hygiene targets 2–3% organic sales growth and >18% EBITDA/EBITA margin, shifting to a full-portfolio core, leveraging system selling, innovation, and omni-channel strategies, with a focus on emerging markets and e-commerce.