Essity, a global leader in health, hygiene, and well-being solutions, reported a 0.4% rise in net sales for the first quarter (Q1) of fiscal year 2025 (FY25), reaching SEK 34,976 million (approximately $3.62 billion). The company achieved an organic sales growth of 2.1%, driven entirely by price/mix increases, while volume growth remained flat at 0.0%.
The company kicked off the year with positive organic sales growth across all business areas, stable profitability, and a continued strong cash flow. Highlighting its resilience in a volatile market, Essity credited its performance to its proximity to customers and consumers, enabling it to deliver essential hygiene and health solutions consistently.
For Q1 2025, all business areas achieved positive organic sales growth compared to the same period in 2024, largely driven by higher pricing. Health and medical and consumer goods segments recorded increased volumes, while professional hygiene saw lower volumes, especially in North America, due to reduced demand.
During the quarter, Essity achieved a product superiority level exceeding 70%, meaning that over 70% of its products were rated by customers and consumers as the best available in the market, according to a company press release.
Earnings (EBITA excluding items affecting comparability, or IAC) were slightly lower, primarily due to the increased cost of goods sold, though higher sales prices helped cushion the impact. The EBITA margin (excluding IAC) was lower than in Q1 2024 but improved compared with Q4 2024. Cash flow consistently remained strong, supported by solid earnings, ensuring the company’s strong financial standing.
Magnus Groth, president and CEO of Essity, commented:
“Essity has sales in approximately 150 countries, but we expect that the changed trade tariffs will only have a limited impact on the company. Our production is close to our customers and consumers, with approximately 70 production facilities worldwide. For the parts of our operations that are nonetheless affected, we are reviewing our flows and actively striving to optimise our production and supply chain.”
Groth further added:
“We remain committed to our ambition to accelerate the company’s profitable growth during the year. We will achieve this through value-creating innovation, strong brands, and efficiency improvements and by continuing our successful sustainability work.”
