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    1. Home
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    3. >Essity reports quarterly earnings below market hopes
    Finance

    Essity Reports Quarterly Earnings Below Market Hopes

    Published by Global Banking & Finance Review®

    Posted on July 17, 2025

    1 min read

    Last updated: January 22, 2026

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    Tags:financial communitycorporate profitseconomic growthfinancial managementmarket capitalisation

    Quick Summary

    Essity's Q2 earnings fell short of market expectations due to a weak economy and uncertain environment, with adjusted EBITA at 4.7 billion crowns.

    Essity's Quarterly Earnings Fall Short of Market Expectations

    -Swedish hygiene products maker Essity reported second-quarter earnings below market expectations on Thursday, citing a weak economy and an uncertain environment.

    Essity's adjusted operating profit before amortisation (EBITA) fell to 4.7 billion Swedish crowns ($482.9 million) from 5.2 billion a year earlier, missing the 4.86 billion crowns expected by analysts polled by LSEG.

    The company's adjusted EBITA margin increased to 13.7% from 13.5% in the first quarter.

    "The quarter was dominated by a weak economy and an uncertain external environment, yielding limited volume growth," CEO Ulrika Kolsrud said in the earnings report.

    Essity raised its price/mix, a metric indicating the selling price of its products, by 1.7% in the second quarter compared to the same period a year earlier.

    Higher sales prices offset the increased costs of goods sold, which was mainly driven by higher raw material and distribution costs, including trade tariffs, Essity said.

    ($1 = 9.7326 Swedish crowns)

    (Reporting by Vera Dvorakova; Editing by Matt Scuffham)

    Key Takeaways

    • •Essity's Q2 earnings missed market expectations.
    • •Adjusted EBITA fell to 4.7 billion crowns.
    • •EBITA margin increased slightly to 13.7%.
    • •Price/mix rose by 1.7% year-over-year.
    • •Higher sales prices offset increased costs.

    Frequently Asked Questions about Essity reports quarterly earnings below market hopes

    1What were Essity's adjusted operating profits in the second quarter?

    Essity's adjusted operating profit before amortisation (EBITA) fell to 4.7 billion Swedish crowns ($482.9 million) from 5.2 billion a year earlier.

    2What factors contributed to Essity's earnings decline?

    The company cited a weak economy and an uncertain external environment as the main factors contributing to limited volume growth.

    3How did Essity respond to rising costs?

    Essity raised its price/mix by 1.7% in the second quarter compared to the same period a year earlier, which helped offset the increased costs of goods sold.

    4What was the adjusted EBITA margin for Essity?

    Essity's adjusted EBITA margin increased to 13.7% from 13.5% in the first quarter.

    5Who is the CEO of Essity and what did they say about the quarter?

    CEO Ulrika Kolsrud stated that the quarter was dominated by a weak economy and an uncertain external environment, which yielded limited volume growth.

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