Good start to 2026 - increased volumes and higher margins

Quarter 1, 2026

• Net sales decreased 5.1% to SEK 33,177m (34,976). Excluding currency translation effects, net sales increased SEK 528m.
• Organic sales growth amounted to 0.4%, of which volume accounted for 1.1% and price/mix -0.7%
• The acquisition of Edgewell's feminine care business in North America was completed and consolidated as of February 2, 2026. The acquisition increased the Group's net sales by 1.1%.
• EBITA decreased 6% to SEK 4,448m (4,718)
• EBITA excl. IAC decreased 2% to SEK 4,603m (4,706). Excluding currency translation effects, EBITA excl. IAC increased 5%, corresponding to SEK 236m.
• EBITA margin excl. IAC increased 0.4 percentage points to 13.9% (13.5)
• ROCE amounted to 15.8% (16.7) and ROCE excl. IAC was 16.3% (16.7)
• Profit for the period was SEK 2,901m (3,083)
• Earnings per share were SEK 4.23 (4.43)
• After the end of the first quarter, it was announced that Essity's Board of Directors had resolved on a new share buyback program for SEK 3bn commencing no earlier than May 11, 2026.

CEO'S COMMENTS

We started 2026 with a positive volume trend, increased market shares and higher margins. At the same time, we continued our efforts to accelerate growth, including the completion of the Feminine Care acquisition in North America, several product launches, and the implementation of our organizational change. In this quarter we thereby report on the basis of our four new business areas for the first time.  

Positive volume trend

We delivered positive organic sales growth for the quarter related to higher volumes. For the new Personal Care business area, we captured market shares and sales performed strongly, fueled by continued high growth in Incontinence Products and Feminine Care. In Professional Hygiene, we could see the effects of our actions to drive volume which - combined with a somewhat more stable market in North America - yielded volume-related growth. Health & Medical also reported positive growth, supported by a good sales trend in Medical Solutions. Consumer Tissue noted a decline in sales, partly due to lower sales in Private Label. However, our own brands once again performed well this quarter.

Higher margins

The gross margin increased as a result of higher volumes, lower costs of goods sold and good price discipline. Total sales and administration costs were slightly higher, and included an increased marketing spend to support growth. In summary, the EBITA margin excl. IAC increased year on year.

Product launches

Our launches during the quarter reflect our focus on innovation, and our ambition to continue strengthening our leading positions. We launched an even softer Libero baby diaper, upgraded parts of our North American TENA range, and introduced coreless household towels under the Zewa brand in Germany. In Feminine Care, we strengthened our offering in the rapidly growing segment "period pants" with a range specially designed for teenagers.

Acquisition in North America completed

The acquisition of Edgewell's feminine care business in North America was completed during the quarter. We look forward to accelerating the growth and profitability of the Carefree, Stayfree, Playtex and o.b. brands, based on our established recipe for success that comprises high-impact innovation combined with effective marketing. The acquisition is aligned with our ambition to grow in categories that yield a high return in attractive markets and nearly doubles our presence in Personal Care in North America.

Strong balance sheet and new share buyback program

We reported higher operating cash flow for the quarter and we further strengthened our balance sheet. The Board of Directors has approved a new share buyback program commencing in May and amounting to SEK 3bn.

A turbulent external environment

Considerable geopolitical turbulence dominated the first quarter of 2026. We have a broad range of leading hygiene and health products that people need regardless of the economic conditions and the global situation. Our operational flexibility, with a high proportion of local and regional supply chains and agile pricing, also helps us to be well equipped to meet and navigate the challenges that lie ahead.  

Capital Markets Day

On May 7, we hold a Capital Markets Day in Gothenburg, at our largest office and a key center of excellence for the Group. I look forward to, together with members of the executive management team, presenting the initiatives that will accelerate the journey toward our financial targets. A very warm welcome!

Ulrika Kolsrud, President and CEO

Invitation to presentation

President and CEO Ulrika Kolsrud and Executive Vice President and CFO Fredrik Rystedt will present the report at a live webcast and teleconference at 09:00 CET on April 23, 2026.

Link to the live presentation, which can also be viewed afterwards:

https://essity.videosync.fi/2026-04-23

Contact information for conference call with the possibility to ask questions:

UK: +44 (0) 33 0551 02 00
USA: +1 786 697 35 01
SWE: +46 (0) 8 505 204 24

Please call in well in advance of the start of the presentation. Indicate: "Essity".

For additional information

Fredrik Rystedt, Executive Vice President and CFO, tel: +46 (0) 8 788 51 31
Sandra Åberg, Vice President Investor Relations, tel:  +46 (0) 70 564 96 89
Per Lorentz, Vice President Corporate Affairs, tel: +46 (0) 73 313 30 55

NB: This information is such information that Essity Aktiebolag (publ) is obligated to make public pursuant to the EU Market Abuse Regulation. This report has been prepared in both Swedish and English versions. In case of variations in the content between the two versions, the Swedish version shall govern. The information was submitted for publication, through the agency of Karl Stoltz, Public Relations Director at 07:00 a.m. CET on April 23, 2026.

This report has not been reviewed by the company's auditors.