Essity misses Q4 expectations as costs offset volume and price growth (updated)

Essity AB (publ)

23/01/2025 06:20

(Adds numbers and CEO comment on costs from paragraph 2)
       Jan 23 (Reuters) - Swedish hygiene products maker Essity
 ESSITYa.ST  reported fourth-quarter core earnings below market
expectations on Thursday, as high raw material costs in its
consumer tissue business and strong U.S. dollar hurt margins
despite positive volume and price mix development.
    Essity's adjusted operating profit before amortisation
(EBITA) rose 2% to 4.97 billion Swedish crowns ($451.6 million)
in the quarter, missing analysts' average estimate of 5.26
billion crowns, LSEG's IBES data showed.
    Quarterly adjusted EBITA margin fell to 13.1% from 13.3% a
year earlier.
    "The rapid and sharp strengthening of the USD increased
costs, which has not yet been fully offset," CEO Magnus Groth
said in the earnings statement.
($1 = 11.0052 Swedish crowns)

 (Reporting by Agata Rybska in Gdansk; Editing by Milla Nissi)
 ((gdansk.newsroom@thomsonreuters.com;))