Quarter 1, 2024 - High profitability and strong cash flow
- Net sales decreased 4.1% to
SEK 34,850m (36,352) - Organic growth amounted to -4.0%, of which volume accounted for -1.8% and price/mix -2.2%. Excluding restructuring and exited contracts, volumes increased 0.6%.
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EBITA increased 4% to
SEK 4,523m (4,368) -
EBITA excl. IAC increased 14% to
SEK 4,880m (4,281) and the EBITA margin excl. IAC increased 2.2 percentage points to 14.0% (11.8) - ROCE increased to 15.9% (15.5) and ROCE excl. IAC increased 2.0 percentage points to 17.2% (15.2).
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Operating cash flow increased 48% to
SEK 4,253m (2,870) Essity completed the divestment of all shares in the subsidiary Vinda. The sales proceeds amounted to approximatelySEK 19bn and the profit from divestment to approximatelySEK 9bn . Vinda is reported as discontinued operations.-
Profit for the period, total operations amounted to
SEK 11,493m (2,703) -
Earnings per share, continuing operations amounted to
SEK 3.51 (3.75)
Earnings per share, total operations increased toSEK 16.21 (3.79)
CEO'S COMMENTS
Innovation-driven growth
Volume growth was positive for the quarter, except for the impact of restructuring measures implemented in Professional Hygiene and contracts exited in Incontinence Products Health Care. In Consumer Goods, Feminine Care gained market shares and Incontinence Products Retail continued to grow strongly.
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By increasing investments in sales and marketing in our segments with the highest margins, the product mix remained positive. The mix this quarter was mainly driven by Professional Hygiene and Health & Medical. The pace of innovation is high, which provides us with a good foundation for growth moving forward and to gain market shares.
Higher margins
Margins were higher for all business areas. We have had a good price discipline despite lower costs for raw materials and energy compared with one year ago. The gap between our sales prices and costs has thus increased. In addition, we achieved good cost savings for the quarter through continuous efficiency improvements, primarily in sourcing and material rationalizations.
Strong cash flow and a good financial position
During the quarter, we received proceeds of approximately
INVITATION TO PRESENTATION
President and CEO
Link to the live presentation, which can also be viewed afterwards: https://essity.videosync.fi/2024-04-25
Contact information for conference call with the possibility to ask questions:
SWE: +46 (0) 8 505 204 24
Please call in well in advance of the start of the presentation. Indicate: "Essity".
The presentation will also be broadcast live on LinkedIn.
For additional information, please contact:
Sandra Åberg, Vice President Investor Relations Tel: +46 (0) 70 564 96 89
Per Lorentz, Vice President Corporate Communications Tel: +46 (0) 73 313 30 55
NB: This interim report has not been reviewed by the company's auditors. This information is such that
https://news.cision.com/essity/r/interim-report--quarter-1--2024,c3967445
https://mb.cision.com/Main/15798/3967445/2758499.pdf
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