Essity AB: Leadership Change and Financial Moves

On May 13, 2025, Essity AB, a leading global player in the consumer staples industry, announced a significant leadership change. Ulrika Kolsrud has been appointed as the new president and CEO of the company. Essity, headquartered in Stockholm, Sweden, specializes in personal care, consumer tissue, and professional hygiene products. The company operates under well-known brands such as TENA, TORK, and Lotus, among others.

In financial news, JP Morgan has adjusted its target price for Essity shares, lowering it to 280 SEK from 290 SEK, while maintaining a neutral rating. This adjustment reflects the bank’s assessment of the company’s future performance and market conditions.

Additionally, Essity’s board chairman, Jan Gurander, has made a notable investment in the company by purchasing 3,600 shares at 273 SEK each, totaling nearly 1 million SEK. Following this purchase, Gurander now holds 15,000 shares in Essity.

In a strategic financial move, Essity has initiated a buyback of its Class B shares during the week of May 19, 2025. Between May 5 and May 9, 2025, the company repurchased 259,857 shares as part of a broader SEK 3 billion buyback program announced on April 23, 2025. This program, which will continue until the 2026 Annual General Meeting, is designed to enhance shareholder value and is conducted in compliance with the EU Market Abuse Regulation and the Safe Harbour Regulation.

In the broader market context, Essity’s competitor, Ingersoll-Rand, experienced a 6.2% increase in its share price, while Essity itself saw a 2.7% rise. This performance is part of a mixed trend among Essity’s competitors, with companies like Atlas Copco and Kennametal also experiencing significant share price movements.

Essity’s market capitalization stands at 192,960,000,000 SEK, with a close price of 568.99 SEK as of November 26, 2024. The company’s price-to-earnings ratio is 15.46, indicating its valuation relative to earnings. Essity’s diverse product offerings and strategic financial initiatives position it as a key player in the consumer staples sector.