Hygiene and health company Essity has seen a positive share price trend following its interim report on Thursday, January 22, which delivered better-than-expected results. The deviation in EBITA was positive at 2.2%.
The share, which dropped 7.4% on the day of the report, is currently up 1.8% since the release, while the large-cap OMXS30 index has risen by 4.5%.
Based on estimates received after the interim report, Factset's consensus for this year's sales has been lowered by 2.4%, while next year's consensus has been adjusted down by 2.5%.
Consensus for the adjusted EBITA result has been reduced by 1.3% for this year and by 1.7% for next year.
The average recommendation for the stock remains overweight.
The average target price has been cut by 2.1% to 281.38 kronor, down from 287.44 kronor.
The proportion of positive recommendations now stands at 39% (previously 44%), while the proportion of hold recommendations is 50% (44%), and negative recommendations remain unchanged at 11% (11%).
Essity AB is one of the world's leading manufacturers of hygiene products. Net sales break down by family of products as follows:
- human care products (54.2%): incontinence products (Tena), feminine protection products (Libresse, Bodyform, Nana, Nuvenia, Saba, Nosotras, Donnasept, etc.), diapers (Libero, Up & Go, Libero-Peaudouce, Drypers, Pequenin, etc.), compresses and bandages.
- paper hygiene products (26.1%): paper towels, toilet paper, handkerchiefs, wipes, etc. sold under Tempo, Colhogar, Cozy, Cushelle, Danke, Delica, Demak Up, Favorita, Flen, Lotus, Lovly, Okay, Plenty, Regio and Zewa brands;
- professional hygiene products (19.7%): including toilet paper, handkerchiefs, hand lotions and hand soaps, hand sanitizers, as well as cleaning and wiping products.
At the end of 2024, the group operated around 70 production sites in the world.
Net sales are distributed geographically as follows: Europe (60.2%), Latin America (17.5%), North America (16.9%), Asia (1.7%), and others (3.7%).
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