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Interim Report Quarter 3, 2025 October23, 2025
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Highlights Q3 2025 • Positive organic sales growth with higher prices, positive volumes and product mix • Higher margins • Strong cash flow • Impactful innovations • Measures launched to accelerate profitable growth: – Reshape of organization to be faster, more focused and more agile – Group-wide cost savings program EBITA excl. IACOrganic sales growth +4.6% Organic: +3.8% EPSEBITA margin excl. IAC 14.6% SEK 4.86 SEK 5,056m+0.9% 2Interim Report, Quarter 3, 2025 2
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Health & Medical Business highlights • Growing Medical Solutions for 18 consecutive quarters • Good growth across therapy areas – Wound Care, Compression and Orthopedics • Incontinence Products Health Care back to volume growth • Launch of Actimove Manus Air – a breakthrough in treatment of wrist fracture • Launch of TENA ProSkin Stretch Day & Night – supporting healthcare providers in managing strained budgets
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Consumer Goods Business highlights • Continued strong growth in Incontinence Products Retail • Feminine Care growth remained high • Baby Care sales improved with market share gains for Libero in Nordics • Consumer Tissue volumes down in Europe, but record high sales for Regio in Mexico • Superiority through new better TENA Discreet Ultra and SABA Buenes Noche
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Professional Hygiene Business highlights • Continued challenging market conditions, especially in HoReCa • Positive volume growth vs Q2 • Strong growth in Latin America, stable in Europe and negative in North America • Strong growth in premium products • Selective price management and launch of value products • Recognized as best supplier by Inpacs – especially important as customers are consolidating
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6 Higher prices, positive volumes and mix Sales development Net sales Q3 2024 Net sales Q3 2025 Currency SEK 36.3bn +0.2% +0.7% -5.4% SEK 34.6bn Reported growth: -4.5% Organic sales growth: +0.9% + Health & Medical + Consumer Goods - Professional Hygiene - Health & Medical + Consumer Goods + Professional Hygiene Health & Medical • Incontinence Health Care • Medical Solutions Consumer Goods • Incontinence Retail • Feminine Care • Baby Care • Consumer Tissue Professional Hygiene Positive organic sales growth in all business areas: +1.7% +0.7% +3.1% +0.8% +9.1% +4.6% -1.3% -1.9% +0.7% Volume Price/mix Interim Report, Quarter 3, 2025
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Interim Report, Quarter 3, 2025 7 Higher gross and EBITA margins excl IAC Margin development Q3 2024 Q3 2025Impact Gross Profit Margin A&P SG&A (excl. A&P) 14.1% +80bps -10bps -10bps 14.6% + Higher sales prices + Higher volumes + Lower COGS Health & Medical Consumer Goods Professional Hygiene EBITA margin excl. IAC 18.3% 12.7% 18.3% -10bps Other
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Interim Report, Quarter 3, 2025 8 Strong cash flow generation Operating cash flow 6.1 5.9 4.3 3.2 6.5 3.3 3.8 1.5 5.3 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 SEKbn
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Interim Report, Quarter 3, 2025 9 Continued reduction of net debt Balance sheet 62.9 53.7 30.8 30.33.1 2.0 1.2 1.2 0 0,5 1 1,5 2 2,5 3 3,5 4 4,5 5 0 10 20 30 40 50 60 70 2022 2023 2024 9M 2025 Net Debt, SEKbn Net Debt / EBITDA excl. IAC SEKbn
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>3% Annual organic sales growth >15% EBITA margin excl. IAC Financial targets
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Accelerating profitable growth Focus on high yielding segments Strong performance culture Differentiated, insight-based innovations Capture efficiencies across the value chain Grow in attractive geographic areas Deliver superior customer experience
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Significant potential to fuel growth and improve performance • Realizing Essity’s full potential requires sharper focus on the most attractive categories and segments • Stronger end-to-end accountability, decentralized decision-making and less operational complexity will unlock the full power of the organisation • Lower cost base is needed to free up resources to support profitable volume growth initiatives and secure competitiveness
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Reshaping the organization Cost savings program Unlocking the power of the organization, freeing up resources to accelerate profitable growth and maximizing the potential of Essity’s product portfolio Actions to fuel growth and improve performance
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14 Summary • Positive organic sales growth, higher margins and strong cash flow in Q3 • Measures launched to fuel growth and improve performance • Priorities – Continue efforts to accelerate profitable volume growth in a challenging market – Achieve SG&A and COGS savings – Reshape the organization to be faster, more focused and more agile
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Every day our brands care for the hygiene and health of a billion people across 150 countries This presentation may contain forward-looking statements. Such statements are based on our current expectations and are subject to certain risks and uncertainties that could negatively affect our business. Please read our most recent annual report for a better understanding of these risks and uncertainties.
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Q&A