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MarketScreener Homepage  >  Equities  >  NASDAQ OMX STOCKHOLM  >  Essity AB (publ)    ESSITY A   SE0009922156

ESSITY AB (PUBL)

(ESSITY A)
  Report  
Delayed Quote. Delayed NASDAQ OMX STOCKHOLM - 08/23 11:29:47 am
288.5 SEK   -0.69%
07/18Essity profits rise, but still battling costs
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07/18ESSITY PUBL : Half-year Report 2019
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06/28ESSITY PUBL : Conversion of shares
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Essity profits rise, but still battling costs

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07/18/2019 | 03:35am EDT
Essity products are seen on display in Stockholm

STOCKHOLM (Reuters) - Higher raw material and energy costs took the shine off a rise in second-quarter adjusted profit for Swedish hygiene products maker Essity on Thursday, as analysts had expected it to start benefiting from an easing in pulp prices.

Shares in the world's biggest maker of hygiene products for businesses and incontinence products with its Tork and TENA brands fell 4.3% in early trading, reducing their year-to-date rise to 28%.

Tough market conditions and high costs for raw materials such as pulp have put pressure on Essity since its 2017 listing, as well as rivals such as Procter & Gamble and Kimberly-Clark.

However, pulp prices have started to come off last year's peaks and analysts have been expecting less of a headwind from raw material and energy prices.

Essity said second-quarter earnings before interest, tax, amortisation (EBITA) and one-off items rose 11% year-on-year to 3.73 billion Swedish crowns (320.34 million pounds), boosted by price increases and cost saving measures.

The adjusted EBITA margin improved to 11.6% from 11.3% a year earlier, despite a 0.8 percentage point hit from higher raw material and energy costs. But analysts at Credit Suisse said in a note the margin lagged a consensus market forecast of 12.0%.

"Efficiency efforts are according to plan and we have achieved significant cost savings," said Essity, which is also the global No.2 in tissue products such as toilet paper and handkerchiefs.

"Our raw material and energy costs were higher during the quarter, although the market prices for such items as pulp are demonstrating a declining trend, albeit from a high level," it said.

Sales increased 7.9% in the quarter, or 4.3% on an organic basis, stripping out effects such as acquisitions. Credit Suisse analysts said that was broadly in line with market expectations.

(Reporting by Anna Ringstrom, Editing by Helena Soderpalm and Mark Potter)

Stocks mentioned in the article
ChangeLast1st jan.
ESSITY AB (PUBL) -0.69% 288.5 Delayed Quote.33.26%
KIMBERLY-CLARK -2.38% 138.41 Delayed Quote.21.48%
PROCTER & GAMBLE COMPANY -1.76% 117.32 Delayed Quote.27.63%
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Latest news on ESSITY AB (PUBL)
07/18Essity profits rise, but still battling costs
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07/18ESSITY PUBL : Half-year Report 2019
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06/28ESSITY PUBL : Conversion of shares
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Financials (SEK)
Sales 2019 127 B
EBIT 2019 14 940 M
Net income 2019 9 314 M
Debt 2019 48 682 M
Yield 2019 -
P/E ratio 2019 -
P/E ratio 2020 -
EV / Sales2019 1,99x
EV / Sales2020 1,88x
Capitalization 204 B
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Mean consensus -
Number of Analysts
Average target price
Last Close Price 288,50  SEK
Spread / Highest target -
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EPS Revisions
Managers
NameTitle
Carl Magnus Groth President, Chief Executive Officer & Director
Pär Boman Chairman
Fredrik Rystedt Chief Financial Officer
Annemarie Gardshol Independent Director
Bert Åke Stefan Nordberg Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
ESSITY AB (PUBL)33.26%21 148
KIMBERLY-CLARK21.48%47 641
UNICHARM CORP-9.01%17 547
HENGAN INTERNATIONAL GROUP COMPANY LTD-7.98%7 872
VINDA INTERNATIONAL HOLDINGS LIMITED17.86%2 136
ONTEX GROUP-21.40%1 266