Essity stock balances sales growth against margin pressure

Published on 11/11/2026 at 10:33 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Essity stock faces a mixed quarterly picture as sales grew but adjusted margins declined. A Brazil acquisition adds a strategic growth option.

Quarterly Results and Strategic Moves

Third-quarter net sales rose 4.1% to SEK 36.06 billion, while organic sales declined 0.3%.
Adjusted EBITA margin fell to 13.1% from 14.6% as cost pressure intensified.
Essity agreed to acquire Kenvue's feminine care business in Brazil, with closing expected in the second quarter of 2027.
The company is evaluating separation options for its Consumer Tissue business.

Essity B, SE0009922164, Illustration mit AI erstellt.

Essity reported a mixed third quarter on Thursday, October 22, 2026, with higher reported sales, stable volumes and strong operating cash flow, while profitability weakened amid intensifying cost headwinds. The Placera report, carrying the company's release from Cision, also highlighted a planned acquisition in Brazil and the next stage of a strategic review.

Sales Growth Meets Margin Pressure

Net sales increased 4.1% year over year to SEK 36.06 billion from SEK 34.638 billion. The underlying picture was softer: organic sales declined 0.3%, with volume down 0.1% and price and mix down 0.2%. Essity said volumes were stable overall, but Consumer Tissue reported lower sales because of weaker volumes, production-footprint optimization in Latin America and earlier price reductions.

EBITA was SEK 3.636 billion, compared with SEK 5.152 billion a year earlier. Excluding items affecting comparability, EBITA was SEK 4.725 billion versus SEK 5.056 billion, and the adjusted EBITA margin narrowed to 13.1% from 14.6%. Profit for the period fell to SEK 2.346 billion from SEK 3.358 billion, while earnings per share declined to SEK 3.47 from SEK 4.86.

Cash generation provided a counterweight. Operating cash flow rose to SEK 5.783 billion from SEK 5.324 billion. Essity said cost savings were delivered according to plan and that higher sales prices in all business areas compared with the second quarter should help offset rising costs.

Brazil Deal Expands Feminine Care

Essity entered an agreement to acquire Kenvue's feminine care business in Brazil. The transaction includes the Carefree, Sempre Livre and o.b. brands and is expected to close in the second quarter of 2027, subject to regulatory approval.

Management described Brazil as a significant growth opportunity in hygiene and health. The deal would expand Essity's feminine care platform in Latin America and follows the company's earlier feminine care acquisition in North America. For investors, the transaction adds a growth initiative to a period in which the group is also working to protect margins through pricing and efficiency measures.

Consumer Tissue Review Advances

Essity said its strategic review of Consumer Tissue was progressing according to plan. The company is evaluating the value-creation potential of two alternatives: separating the business or keeping it within Essity. Management said the objective is to identify the option that gives both Consumer Tissue and the wider group the best opportunity to reach their potential and maximize long-term value creation.

Health and Medical delivered organic growth and good profitability, supported by Incontinence Products and wound care. Personal Care also performed well, while Professional Hygiene retained solid profitability despite unsatisfactory volume development. Essity said it would continue prioritizing investments in higher-growth opportunities while addressing costs and accelerating profitable growth.

Essity stock traded at 26.18 euros on Lang & Schwarz at 10:31 CET on Wednesday, November 11, 2026.