Essity seen falling 4-5% as Q4 EBITA misses forecast

Essity AB (publ)

23/01/2025 08:00

** Shares in Essity  ESSITYa.ST  are seen down 4-5% after
the Swedish hygiene products maker's Q4 EBITA missed estimates
as high raw material costs and strong USD hurt margins
    ** The company reports Q4 adjusted EBITA of 4.97 billion
Swedish crowns ($450.9 million), below the estimated 5.26
billion seen in an LSEG poll
    ** Prior to releasing the results, late on Wednesday, Essity
said CEO Magnus Groth would step down during 2025
    ** J.P.Morgan sees the Q4 EBITA miss as a downside to 2025;
expects 2025 consensus EBITA/EPS to be revised down low- to
mid-single-digit
    ** "The sequential acceleration in COGS and impact from a
stronger USD is likely to be a concern into H1," JPM says

($1 = 11.0216 Swedish crowns)

 (Reporting by Marta Frackowiak)
 ((marta.frackowiak@thomsonreuters.com))