Essity reports 2.2% net sales decline in Q3FY24; Swedish hygiene company sees 1.9% organic growth, higher volumes in all categories excluding restructuring

The net sales of Essity, a Swedish hygiene and health company, has decreased 2.2 per cent to SEK 36,274 million (~$3.42 million), in the third quarter (Q3) of fiscal 2024. Organic growth amounted to 1.9 per cent, of which volume accounted for 2.0 per cent and price/mix -0.1 per cent. Excluding restructuring, organic growth increased 3.4 per cent.

The third quarter was characterised by strong earnings with profitable growth and record-high cash flow. The focus on growth resulted in higher volumes and increased market shares all over the world, the company said in its interim report.

“Every day Essity cares for the hygiene and health of a billion people across 150 countries. Our solutions are needed regardless of the economic situation and we are working to constantly increase the value of customer and consumer offerings. Although the global economy remains challenging, we have higher volumes in all categories, excluding restructuring,” Magnus Groth, president and CEO, said.

Growth was strong in health & medical, especially in Europe and Latin America. The company’s Tena pants in incontinence products Health care continued to drive both volume and higher margins and it is gratifying to see that the products are appreciated by both caregivers and patients. Growth was also particularly high in wound care products under the Leukoplast and Cutimed brands. The company continued to gain market share in consumer goods, a result of long-term work on innovation combined with investments in marketing. Growth was strong in Europe, but the development was also favourable in Latin America. In professional hygiene, growth was affected by restructuring, but underlying growth was strong, especially in the premium range.

“All business areas contributed to the group’s good profitability. Earnings were positively impacted by the economies of scale we achieved through higher volumes and by a favourable product mix. We have also had good price discipline, despite lower costs of goods sold, and sales prices were higher compared with the second quarter of 2024. We continued to realise high cost savings through continuous efficiency improvements. Combined, this led to a strong result for the quarter,” added Groth.