- Adjusted operating profit for Essity in Q3 was SEK 4.84 billion, closely aligning with estimates of SEK 4.79 billion.
- Total revenue was slightly below estimates, at SEK 36.27 billion compared to an expected SEK 36.92 billion.
- Health & Medical sales were SEK 7.13 billion, underperforming the estimate of SEK 7.38 billion.
- Consumer Goods sales totaled SEK 19.41 billion, which was slightly below the projected SEK 19.83 billion.
- Sales in the Professional Hygiene segment reached SEK 9.73 billion, not meeting the anticipated SEK 9.96 billion.
- Organic sales experienced a 4% decline, compared to the expected increase of 1.67%.
- The gross margin exceeded expectations at 33% against an estimated 31.6%.
- The operating profit came in at SEK 4.87 billion, surpassing the estimate of SEK 4.81 billion.
- Adjusted Ebita was SEK 5.10 billion, slightly above the expected SEK 5.08 billion.
- Health & Medical adjusted Ebita registered at SEK 1.39 billion, while Consumer Goods and Professional Hygiene segments recorded SEK 2.29 billion and SEK 1.81 billion, respectively.
- For the first nine months, Essity reported total revenue of SEK 107.74 billion.
- Adjusted Ebita for the nine-month period was SEK 15.38 billion.
- CEO comments highlighted strong earnings and record-high cash flow for Q3, with notable growth in Health & Medical sales in Europe and Latin America.
- The company gained market share in Consumer Goods through innovation and marketing investment.
- Professional Hygiene’s growth was partly impacted by restructuring but remained robust in the premium range.
- All business areas contributed positively to the group’s profitability.
- The market’s view on Essity includes 11 buy ratings, 4 hold ratings, and 3 sell ratings.
A look at Essity Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Essity Aktiebolag, a company that develops and sells personal care products globally, shows a promising long-term outlook based on Smartkarma Smart Scores. With a solid Growth score of 4 and a top-notch Momentum score of 5, Essity is positioned for future success in the market. The company’s focus on expanding and evolving its product line indicates strong potential for growth ahead.
Furthermore, Essity maintains respectable scores in Value, Dividend, and Resilience, all indicating a stable and reliable investment choice. These scores suggest that Essity is well-equipped to weather economic fluctuations and provide consistent returns to its investors. Overall, Essity’s positive Smart Scores point towards a bright future and a sound investment opportunity in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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