Essity has reported “strong earnings and good underlying growth” in its Q2 interim report, as net sales decreased 1.2% to SEK36,617m.
Organic growth amounted to -0.9%, and excluding restructuring and exited contracts volumes increased 2.9%.
EBITA increased 27% to SEK 5,237m, while profit for the period, total operations, amounted to SEK3,333m.
Magnus Groth, President and Chief Executive, said: “Essity is in better shape than ever, reporting strong second-quarter earnings with good underlying growth and its highest operating profit (EBITA) to date.
“All business areas achieved higher EBITA margins compared with the preceding year.
“We presented new ambitious financial targets during the quarter, and initiated a share buyback programme”.
He added that all categories reported higher volumes, excluding the restructuring in Professional Hygiene, and in several categories, he said the company outperformed the market in terms of growth.
“The quarter shows the results of our greater emphasis on profitable volume growth based on attractive product offerings, increased investments in sales and marketing, and cost savings.”
All business areas also reported a higher EBITA margin: “We maintained strong price discipline, and there was hence a further widening of the gap between our sales prices and costs.
“The product mix also developed positively, particularly in Professional Hygiene where sales of premium products increased.
“Cost savings remained high in the quarter, with contributions from the entire value chain.
He said the company’s aim is to grow organically by more than 3% per year and have a margin of above 15%.
