Essity AB Financial Update: Interim Report Q2 2025
Stockholm, July 17, 2025 — Essity AB, a leading global player in the consumer staples industry, has released its interim report for the second quarter of 2025. Despite a challenging economic environment, the company has demonstrated resilience with organic growth and a sequentially higher margin.
Financial Performance Overview
Net Sales: Essity reported a 6.6% decrease in net sales to SEK 34,185 million, down from SEK 36,617 million in the previous year. However, excluding currency translation effects, net sales increased by SEK 699 million, indicating underlying growth in the company’s core operations.
EBITA: The adjusted EBITA for the second quarter was SEK 4,693 million, slightly below the average analyst expectation of SEK 4,947 million, as compiled by Infronts from nine analysts’ forecasts.
Earnings Per Share (EPS): Analysts anticipate an average EPS of SEK 4.76 for Essity Registered B and Essity Registered A, reflecting a modest increase of 0.63% compared to the SEK 4.73 EPS reported in the same quarter of the previous year.
Market Reaction and Analyst Adjustments
Barclays Downgrade: Amid shifts in the beauty market, Barclays has downgraded Essity’s stock rating to “Underweight” from “Equal Weight,” citing pressure from private label competition. The price target was adjusted from SEK 290 to SEK 230. This downgrade reflects broader market dynamics affecting consumer staples and personal care sectors.
Stock Performance: Following the downgrade, Essity’s stock closed at SEK 263.40 on the previous trading day, indicating investor sensitivity to market sentiment and analyst recommendations.
Company Overview
Essity AB, founded in 1849 and headquartered in Stockholm, Sweden, operates in the consumer staples sector, focusing on personal care, consumer tissue, and professional hygiene products. The company markets its products under well-known brands such as TENA, TORK, and Zewa, among others. With a market capitalization of SEK 185,400 million and a price-to-earnings ratio of 14.86, Essity continues to be a significant player in its industry.
Conclusion
Despite facing a weak economy and competitive pressures, Essity has managed to achieve organic growth and improve its margin in Q2 2025. The company’s ability to navigate market challenges while maintaining growth in core operations highlights its strategic resilience. However, the recent downgrade by Barclays underscores the need for Essity to address competitive pressures, particularly from private label products, to sustain its market position.