Essity reported its interim financial results for the second quarter of 2026, delivering higher net sales and resilient profitability in a volatile operating environment. Net sales increased 2.6% year-on-year to SEK 35,061m, supported by higher volumes across Health & Medical, Personal Care and Professional Hygiene, while continued cost inflation for distribution, energy and transportation weighed on margins. The acquisition of Edgewell Personal Care's feminine care business in North America also contributed to reported growth.

Q2 2026 Financial & Strategic Summary

• Net Sales: Increased 2.6% year-on-year to SEK 35,061m compared to SEK 34,185m in Q2 2025.
• Organic Sales Growth: Rose by 0.3%, fueled by a robust 1.4% volume growth that effectively countered a -1.1% pricing and product mix deflationary headwind.
• Acquisition Performance: The integration of the Edgewell feminine care business in North America successfully added 1.7% to overall corporate top-line growth.
• Adjusted EBITA: Maintained stable performance at SEK 4,685m, compared to SEK 4,693m in the prior year period, exceeding the LSEG analyst consensus projection of SEK 4,600m.
• Adjusted EBITA Margin: Adjusted EBITA margin landed at 13.4%, experiencing a minor compression of 30 basis points from 13.7% in Q2 2025 due to input cost volatility.
• Capital Allocation: Continuing its commitment to shareholder value, the company successfully initiated a new SEK 3bn share buyback program during the quarter.

“Higher volumes and an improved product mix resulted in sales growth for the quarter. Our focus on growth by developing our offerings, investing in marketing and selective price adjustments continued, and we reported good growth in Health & Medical, Personal Care as well as Professional Hygiene. Profitability was healthy even though the geopolitical situation causes higher cost inflation. The execution of launched initiatives is continuing, with the aim to accelerate progress towards the company’s financial targets.” — Ulrika Kolsrud, President and CEO of Essity

Business Area Performance Breakdown

Operations during the quarter highlighted distinct dynamics across Essity’s specialized reporting segments:

• Health & Medical (+3.1% Organic Growth / 18.9% Adj. EBITA Margin): Strong commercial tailwinds in wound care and medical systems. Enhanced margins by 170 bps via high-value product rollouts like digital solutions for Delta-Cast Prints.
• Personal Care (+3.8% Organic Growth / 12.8% Adj. EBITA Margin): Excellent volume expansion led by TENA incontinence care and Libresse feminine care, offset in part by Baby Care weakness (-4.3%) and onboarding costs for Edgewell.
• Professional Hygiene (+2.1% Organic Growth / 17.2% Adj. EBITA Margin): Solid corporate account growth under the global Tork banner, supported by commercial facilities optimization and innovative systems delivery in North America.
• Consumer Tissue (-5.3% Organic Growth / 9.7% Adj. EBITA Margin): Impacted by historical price roll-backs catching up to current terms and localized volume pressures. Management is executing an active strategic margin recovery program.

Operational Performance, Efficiency and Innovation

• Cost Savings: Essity achieved approximately SEK 160m in savings in cost of goods sold and SEK 100m in sales and administration costs through continued efficiency initiatives.
• Statutory EBITA: Reported EBITA amounted to SEK 4,105m, compared with SEK 4,628m in Q2 2025, reflecting items affecting comparability, including restructuring costs.
• Capital Efficiency: Return on Capital Employed (ROCE) was 14.0%, while ROCE excluding items affecting comparability reached 16.0%.
• Market Position: Essity reported improved market shares in approximately 60% of its branded retail categories, supported by continued investments in innovation and marketing.
• Professional Hygiene: The business area returned to volume growth of approximately 2%, reflecting improved commercial performance.
• Product Innovation: During the quarter, Essity expanded the rollout of Smart Protect technology in feminine care and continued the launch of leak-proof apparel for men within its TENA portfolio.

Innovation

The company expanded the use of artificial intelligence across its operations. According to Essity, AI supported shorter product development lead times for new product launches and is increasingly being used to improve efficiency across the value chain. During the quarter, the company deployed a Group-wide agentic AI solution for procurement to improve efficiency and data quality.