Finance
Sweden's Essity Posts Q1 Results Slightly Above Market View Aided by Volumes
Published by Global Banking & Finance Review®
Posted on April 23, 2026
2 min readLast updated: April 23, 2026
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Essity’s Q1 2026 adjusted EBITA of SEK 4.603 bn beat forecasts (SEK 4.57 bn) as volume gains offset price cuts. Margin rose to 13.9% from 13.5%, and the company approved a SEK 3 bn share buyback program starting in May.
Essity posts small profit beat, plans price hikes to offset energy costs
Essity's First-Quarter Performance and Strategic Response
By Vera Dvorakova
April 23 (Reuters) - Hygiene products maker Essity reported first-quarter core earnings slightly above market expectations on Thursday, helped by higher volumes that offset lower product prices.
Operational Restructuring and Market Conditions
Similarly to other consumer goods companies, the Swedish tissue maker has been restructuring its operations and tempering prices to balance rising costs and lower consumer demand since the COVID-19 pandemic.
Price Adjustments and Energy Costs
"We are preparing for price increases to compensate for increasing energy costs," CEO Ulrika Kolsrud told Reuters.
- While Essity does not see a significant cost impact, energy costs are expected to rise in Q2 and possibly the rest of the year
- The company is hedged to "quite a high degree" when it comes to energy costs, Kolsrud said
Product Pricing and Cost Management
- The Tork brand owner's product prices were 0.7% lower in the first quarter than a year ago
- It plans to cut roughly 800 positions globally as part of a savings programme launched in October, Kolsrud said
Financial Results and Analyst Commentary
- Adjusted EBITA fell 2% to 4.6 billion Swedish crowns ($498 million), a touch above analysts' average forecast in LSEG's I/B/E/S data
- Adjusted EBITA margin increased to 13.9% from 13.5% in the first quarter of 2025
- Essity has also decided on a share buyback of 3 billion crowns, it said on Wednesday
- Weakening demand and increased costs have put pressure on Essity's growth and profitability, SpareBank 1 Markets wrote ahead of the results
Global Market Outlook
- Brazilian pulp giant Suzano has said it expects global prices for toilet paper, tissues and diapers to rise in the event of a prolonged Iran war
($1 = 9.2387 Swedish crowns)
(Reporting by Vera Dvorakova; Editing by Milla Nissi-Prussak)
Key Takeaways
- •Adjusted EBITA excl. IAC was SEK 4.603 bn, slightly above analyst consensus of SEK 4.57 bn, supported by 1.1% volume growth despite -0.7% lower pricing (inderes.dk).
- •EBITA margin excluding IAC improved to 13.9% from 13.5% in Q1 2025, reflecting margin gains driven by higher volumes, lower costs of goods sold, and disciplined pricing (inderes.dk).
- •Essity launched a new SEK 3 bn share buyback program to commence no earlier than May 11, 2026, reinforcing its capital return strategy amid challenging market conditions (inderes.dk).
References
Frequently Asked Questions about Sweden's Essity posts Q1 results slightly above market view aided by volumes
1What were Essity’s adjusted operating profit figures for Q1 2024?
Essity reported adjusted operating profit before amortisation (EBITA) of 4.6 billion Swedish crowns for Q1 2024, slightly above market expectations.
2How did Essity's product prices change in the first quarter?
Product prices were 0.7% lower in the first quarter of 2024 compared to a year ago.
3What actions has Essity taken in response to market pressures?
Essity has restructured operations and adjusted product pricing to manage rising costs and changing consumer demand.
4Did Essity announce any share buyback plans?
Yes, Essity decided on a share buyback of 3 billion Swedish crowns.
5Which factors influenced Essity’s profitability in Q1 2024?
Higher volumes offset lower prices, helping Essity's profitability despite weakening demand and increased costs.
