Sweden's Essity slightly misses Q3 net sales estimates

Overview

• Sweden hygiene products maker's Q3 net sales rose 4.1%, a slight miss versus expectations

• Earnings per share for Q3 fell to SEK 3.47 from SEK 4.86

• Company agreed to acquire Kenvue's feminine care business in Brazil, closing expected Q2 2027

Outlook

• Company continues efforts to accelerate profitable growth and offset higher costs through price increases

• Essity is evaluating strategic alternatives for Consumer Tissue, including a possible separation

• Company prioritizes investments in growth areas and aims to improve efficiency amid cost headwinds

Result Drivers

• COST HEADWINDS - Co said profitability was resilient despite rising costs

• PRICE INCREASES - Co said price increases across business areas helped offset higher costs

• HEALTH & MEDICAL GROWTH - Organic growth and profitability in Health & Medical, including incontinence and wound care products

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 4 "hold" and 5 "sell" or "strong sell"

• The average consensus recommendation for the personal products peer group is "buy."

• Wall Street's median 12-month price target for Essity AB (publ) is SEK285.00, about 3.1% above its October 21 closing price of SEK276.50

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

• Oct 20 - Sweden's Scandi Standard Q3 revenue rises on strong chicken demand

• Oct 21 - Sweden's Husqvarna slightly misses Q3 sales estimates amid weak demand

• Oct 20 - Sweden's Byggmax Q3 sales and profit rise

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)