Essity (ESSITY) UBS Global Consumer and Retail Conference 2025 summary

Company Overview and Market Positioning

• Operates in 150 countries with SEK 146 billion in net sales and SEK 20 billion in operating profit, employing 36,000 people.

• Holds leading positions in hygiene and health markets, with brands like TENA and Tork ranked #1 or #2 in key categories and 90% of retail activities.

• Three business areas: Health & Medical (20% of sales), Consumer Goods (54%), and Professional Hygiene.

• Portfolio realignment through divestments and targeted acquisitions, with a focus on profitable growth.

• Sustainability and digitalization are core priorities, supporting long-term value creation.

Financial Performance and Targets

• Achieved record profits in 2024, with EBITA excl. IAC up 8%, margin at 14.0%, and strong cash flow.

• Net sales reached SEK 146 billion, with organic sales growth of about 2% in 2024 and return on capital near 18%.

• Long-term targets set at >3% annual organic sales growth and >15% EBITA margin excl. IAC.

• Recurring share buybacks and rising dividends prioritized within free cash flow boundaries.

• Maintains a strong balance sheet and stable dividend policy.

Strategic Priorities and Growth Drivers

• Focuses on innovation, with over 50% of sales from products launched in the last three years and innovation rate exceeding 25% of net sales from new B2C products.

• Plans to expand in North America, Latin America, and Asia, aiming for higher growth in these regions.

• M&A strategy centers on bolt-on acquisitions in Health & Medical, especially advanced wound care and compression therapy, and selective growth in Consumer Goods and Professional Hygiene.

• Launches in high-margin categories and impactful product innovations drive market share gains.

• Growth investments and efficiency improvements support margin expansion.