Interim report
Page 1
Interim Report Quarter 3, 2025
Page 2
Essity Aktiebolag (publ) Interim Report Q3, 2025 1 Organic growth, higher margin and strong cash flow Quarter 3, 2025 • Net sales decreased 4.5% to SEK 34,638m (36,274). Excl. currency translation effects, net sales increased SEK 322m. • Organic sales growth amounted to 0.9%, of which volume accounted for 0.2% and price/mix 0.7% • EBITA increased to SEK 5,152m (5,130) • EBITA excl. IAC decreased 1% to SEK 5,056m (5,097). Excl. currency translation effects, EBITA excl. IAC increased 5%, corresponding to SEK 278m. • EBITA margin excl. IAC increased 0.5 percentage points to 14.6% (14.1) • ROCE amounted to 17.9% (17.8) and ROCE excl. IAC to 17.6% (17.7) • Profit for the period, total operations, increased to SEK 3,358m (3,329). • Earnings per share, total operations, increased to SEK 4.86 (4.73). • On October 23, 2025, it was announced that an organizational change and a cost savings program are launched to create better conditions for profitable growth. 0.9% 14.6% Organic sales growth EBITA margin excl. IAC Financial overview, continuing operations 2025:3 2024:3 % 2509 2409 % Net sales, SEKm 34,638 36,274 -5 103,799 107,741 -4 Organic sales growth, % 0.9 1.9 1.7 -1.0 EBITA, SEKm 5,152 5,130 0 14,498 14,890 -3 EBITA margin, % 14.9 14.1 14.0 13.8 EBITA excl. IAC, SEKm 5,056 5,097 -1 14,455 15,375 -6 EBITA margin excl. IAC, % 14.6 14.1 13.9 14.3 Profit for the period, SEKm 3,358 3,329 1 9,494 9,140 4 Earnings per share, SEK 4.86 4.73 3 13.68 12.96 6 Earnings per share*, SEK 5.01 4.97 1 14.37 14.44 0 ROCE, % 17.9 17.8 16.8 17.0 ROCE excl. IAC, % 17.6 17.7 17.1 17.6 Operating cash flow, SEKm 5,324 6,453 -17 10,629 13,945 -24 * Earnings per share excl. IAC and amortization of acquisition-related intangible assets Financial overview, total operations 2025:3 2024:3 % 2509 2409 % Profit for the period, SEKm 3,358 3,329 1 9,494 18,155 -48 Earnings per share, SEK 4.86 4.73 3 13.68 25.68 -47 Net debt/EBITDA excl. IAC 1.18 1.11
Page 3
Essity Aktiebolag (publ) Interim Report Q3, 2025 2 Our efforts to drive growth and reduce costs have yielded results and the third quarter developed favourably in continued challenging market conditions. In parallel, we are today launching measures aimed at creating better conditions for profitable growth – an organizational change and a cost savings program. Positive organic sales growth Organic growth was positive compared with the third quarter of the previous year, mainly driven by higher prices. Volumes and product mix also contributed positively. All business areas reported positive organic growth. Growth remained strong in Incontinence Products Retail, Feminine Care and Medical Solutions. However, Consumer Tissue noted negative growth, driven by lower volumes in Europe. In Professional Hygiene, Baby Care and Incontinence Health Care, we reported a positive volume development compared with the first half-year, although markets remained challenging. Strengthened margins The company’s gross margin improved as a result of higher volumes and prices, in addition to lower costs of goods sold, including cost savings. We have reduced sales and administration costs compared with the second quarter of this year, and are delivering a strengthened margin of 14.6%, profit of more than SEK 5bn and strong cash flow. Market-tailored innovation Innovation is the main driver of growth for the company and our launches are tailored to the situation of our customers and consumers. One example is the launch of TENA ProSkin Stretch Day & Night, a new unique incontinence product that is easy to put on and take off, making it easier for both the patient and healthcare professionals. The product helps reduce the cost of continence care, which is especially relevant in the light of tight healthcare budgets. “Today, I am launching measures that create better conditions for Essity to increase its growth rate going forward” Measures to increase growth rate With the aim of increasing our growth rate, and considering the current economic climate, we are launching a number of measures today to faster achieve the company’s financial targets: • We are making an organizational change that will decentralize decision-making and strengthen end-to- end accountability for each product category. A simplified structure with a more well-defined allocation of responsibilities enhances the company’s customer and consumer focus, while increasing our speed, agility and operational efficiency. The change also facilitates increased strategic focus on the categories with the greatest potential for profitable growth. • In parallel, a cost savings program is launched, mainly encompassing sales and administration costs excluding marketing costs. The program is expected to generate annual cost savings of approximately SEK 1bn, with full effect by the end of 2026. The organizational change will contribute to reducing costs. The savings will mainly be invested in profitable volume growth. This program is in addition to our annual savings in costs of goods sold of SEK 0.5–1bn. These measures will contribute to our goal of reaching more people with our leading hygiene and health products, capturing market shares and maximizing the potential of our product portfolio. Ulrika Kolsrud President and CEO CEO’s comments
Page 4
Essity Aktiebolag (publ) Interim Report Q3, 2025 3 Net sales Net sales decreased 4.5% in the third quarter of 2025 compared with the corresponding period a year ago and amounted to SEK 34,638m (36,274). Excluding currency translation effects, net sales increased SEK 322m. Organic sales growth was 0.9%, mainly driven by higher prices. Volumes and product mix contributed positively. All business areas reported positive organic growth. Volumes were higher in Health & Medical and Consumer Goods. However, volumes were lower in Professional Hygiene, mainly due to lower demand in the hotel and restaurant sector. The product mix was slightly positive for the Group, partly due to the increased sales of premium products in Professional Hygiene. Growth was somewhat negative in Europe due to lower sales in Consumer Goods related to Consumer Tissue and Baby Care. Growth was positive in North America, driven by higher sales in Consumer Goods and Health & Medical. In Latin America, growth was strong, with high growth in Consumer Goods and Professional Hygiene. Operating profit The gross margin increased 0.5 percentage points to 33.5% (33.0). The gross margin excl. IAC increased 0.8 percentage points to 33.4% (32.6). Higher sales prices and volumes had a positive impact on earnings. Costs of goods sold were lower, mainly due to lower costs for raw materials and energy. Savings in cost of goods sold amounted to approximately SEK 117m. EBITA increased to SEK 5,152m (5,130) and EBITA excl. IAC decreased 1% to SEK 5,056m (5,097). Excluding currency translation effects, EBITA excl. IAC increased 5%, corresponding to SEK 278m. EBITA margin excl. IAC increased 0.5 percentage points to 14.6% (14.1). Sales and administration costs increased to 18.8% (18.6), of which marketing costs accounted for 5.2% (5.1). IAC amounted to SEK 96m (33). Group Net sales 2509 by business area Net sales 2509 by region Net sales EBITA excl. IAC Change in net sales % 2025:3 vs 2024:3 Total -4.5 Volume 0.2 Price/Mix 0.7 Organic growth 0.9 Acquisitions 0.0 Divestments 0.0 Currency translation -5.4 Change in EBITA excl. IAC SEKm EBITA excl. IAC 2024:3 5,097 Volume 218 Price/Mix 141 Cost of goods sold 64 Sales & Administration -74 Currency translation -319 Other -71 EBITA excl. IAC 2025:3 5,056 20% 54% 26% Health & Medical Consumer Goods Professional Hygiene 61% 17% 16% 6% Europe Latin America North America Other -10 0 10 20 30 30,000 32,000 34,000 36,000 38,000 2023:3 2023:4 2024:1 2024:2 2024:3 2024:4 2025:1 2025:2 2025:3 Net sales Organic sales growth % SEKm % 6 8 10 12 14 16 1,000 2,000 3,000 4,000 5,000 6,000 2023:3 2023:4 2024:1 2024:2 2024:3 2024:4 2025:1 2025:2 2025:3 EBITA excl. IAC EBITA margin excl. IAC % SEKm %
Page 5
Essity Aktiebolag (publ) Interim Report Q3, 2025 4 Financial items Financial items decreased to SEK -369m (-430) mainly on account of lower average net debt. Tax The tax expense was SEK 1,178m (1,109), corresponding to a tax rate of 26.0% (25.0). The tax expense excl. IAC was SEK 1,151m (1,097), corresponding to a tax rate of 25.9% (24.9). Profit for the period Profit for the period, total operations, amounted to SEK 3,358m (3,329). Profit for the period, continuing operations, was SEK 3,358m (3,329). Cash flow Operating cash flow amounted to SEK 5,324m (6,453). The decrease compared with a year ago was mainly related to a less favorable development in working capital. Net cash flow totaled SEK 2,933m (3,875). During the quarter, Essity bought back 4,563,370 own Class B shares for a total amount of SEK 1,147m (1,074). Operating cash flow statement SEKm 2025:3 2024:3 2509 2409 Operating cash surplus 6,757 6,734 19,484 20,360 Change in inventories -8 -276 -1,622 -1,330 Change in operating receivables 772 -491 79 -1,218 Change in operating liabilities -364 2,252 -1,726 2,163 Investments in non-current assets, net -1,657 -1,565 -4,438 -4,722 Restructuring costs, etc. -67 -109 -575 -986 Investments in operating assets through leases -109 -92 -573 -322 Operating cash flow 5,324 6,453 10,629 13,945 Financial items -369 -430 -1,075 -1,515 Income taxes paid -873 -1,073 -3,460 -3,673 Other ─ -1 27 33 Cash flow from current operations 4,082 4,949 6,121 8,790 Acquisitions of Group companies and other operations ─ ─ ─ -17 Divestments of Group companies and other operations 5 ─ 5 23,908 Cash flow before transactions with shareholders 4,087 4,949 6,126 32,681 Dividend ─ ─ -5,711 -5,443 Dividend to non-controlling interests -7 ─ -11 -1 Repurchase of own shares -1,147 -1,074 -2,605 -1,208 Net cash flow, continuing operations 2,933 3,875 -2,201 26,029 Net cash flow, discontinued operations ─ ─ ─ -467 Net cash flow, total operations 2,933 3,875 -2,201 25,562 Operating cash flow SEKm 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2023:3 2023:4 2024:1 2024:2 2024:3 2024:4 2025:1 2025:2 2025:3
Page 6
Essity Aktiebolag (publ) Interim Report Q3, 2025 5 Financial position Net debt decreased SEK 463m compared with December 31, 2024 and amounted to SEK 30,306m. The Group’s interest-bearing gross debt amounted to SEK 35,187m at the end of the quarter. The average maturity period was 3.6 years. Compared with December 31, 2024, working capital increased SEK 2,070m. Working capital amounted to 9% (7) of net sales. Equity attributable to owners of the Parent company decreased SEK 4,748m compared with December 31, 2024. Profit for the period attributable to owners of the Parent company increased the equity of owners of the Parent company by SEK 9,448m. Net translation effects excluding tax reduced equity by SEK 6,490m. The decrease is mainly attributable to a stronger Swedish krona. The dividend of SEK 5,711m and the buyback of own shares of SEK 2,605m reduced equity attributable to owners of the Parent company. The Group’s total equity decreased SEK 4,758m during the quarter. Share buyback program During the July 1–September 30, 2025 period, Essity bought back 4,563,370 own Class B shares for a total amount of SEK 1,147m. The share buyback is part of the SEK 3bn buyback program announced by Essity on April 23, 2025. The buyback program will extend from April 24, 2025 until the 2026 Annual General Meeting at the latest. As of September 30, 2025, Essity’s holdings of own shares corresponded to 1.1% of the total number of outstanding shares. The repurchased shares are expected to be canceled. The share buyback is financed using cash flow from current operations after the ordinary dividend with the ambition to continue with share buybacks over time as a recurring part of Essity’s capital allocation. Net debt ROCE excl. IAC and ROE excl. IAC Financial position 2509 2409 2412 Working capital, SEKm 12,816 10,034 10,746 Capital employed, SEKm 114,289 112,957 119,510 Net debt, SEKm 30,306 29,122 30,769 Debt/equity ratio 0.36 0.35 0.35 Debt payment capacity, % 60 64 59 Net debt/EBITDA 1.20 1.13 1.19 Net debt/EBITDA excl. IAC 1.18 1.11 1.16 Return % 2025:3 2024:3 2509 2409 ROCE 17.9 17.8 16.8 17.0 ROCE excl. IAC 17.6 17.7 17.1 17.6 ROE 16.3 15.9 14.8 25.6 ROE excl. IAC 15.9 15.8 15.2 15.7 Change in net debt SEKm 2509 2409 2412 Net debt at the beginning of the period -30,769 -53,703 -53,703 Net cash flow -2,201 25,562 25,168 Remeasurements to equity 1,208 802 96 Investments in non-operating assets through leases -207 -442 -581 Translation differences 1,663 -1,341 -1,749 Net debt at the end of the period -30,306 -29,122 -30,769 0 1 2 3 4 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2309 2312 2403 2406 2409 2412 2503 2506 2509 Net debt Net debt/ EBITDA excl. IAC SEKm 5 10 15 20 2023:3 2023:4 2024:1 2024:2 2024:3 2024:4 2025:1 2025:2 2025:3 ROCE excl. IAC ROE excl. IAC %
Page 7
Essity Aktiebolag (publ) Interim Report Q3, 2025 6 Net sales Net sales increased organically 1.7% as a result of higher volumes. Growth was favorable in both Europe and North America. In Incontinence Products Health Care, volumes were higher despite continued challenging market conditions. Sales prices and the product mix developed negatively. Organic growth in Medical Solutions was mainly driven by higher volumes. Sales prices were also higher and product mix was stable. Growth was favorable in all therapeutic areas and was especially high in compression therapy and wound care. EBITA excl. IAC EBITA and the EBITA margin excl. IAC decreased. Lower sales prices and an unfavorable mix negatively impacted earnings, while higher volumes made a positive contribution. Costs of goods sold as well as for sales and administration, increased. Currency translation effects had a negative impact on earnings of SEK 71m. Health & Medical Financial overview 2025:3 2024:3 % Net sales, SEKm 6,883 7,127 -3 Organic sales growth, % 1.7 2.8 Gross profit margin excl. IAC, % 43.8 44.7 EBITA excl. IAC, SEKm 1,260 1,386 -9 EBITA margin excl. IAC, % 18.3 19.4 ROCE excl. IAC, % 15.3 16.5 Operating cash flow, SEKm 1,471 1,674 -12 Net sales 2509 by region Net sales EBITA excl. IAC Change in net sales % 2025:3 vs 2024:3 Total -3.4 Volume 2.3 Price/Mix -0.6 Organic growth 1.7 Acquisitions 0.0 Divestments 0.0 Currency translation -5.1 Organic sales growth % 2025:3 vs 2024:3 % of net sales Incontinence Products Health Care 0.7 57 Medical Solutions 3.1 43 66% 17% 5% 12% Europe North America Latin America Other 0 4 8 3,000 5,000 7,000 9,000 2023:3 2023:4 2024:1 2024:2 2024:3 2024:4 2025:1 2025:2 2025:3 Net sales Organic sales growth % SEKm % 5 10 15 20 25 0 500 1,000 1,500 2,000 2023:3 2023:4 2024:1 2024:2 2024:3 2024:4 2025:1 2025:2 2025:3 EBITA excl. IAC EBITA margin excl. IAC % SEKm % • Positive organic growth • Higher volumes in both Incontinence Products Health Care and Medical Solutions • Strong growth in compression therapy and wound care Actimove Manus Air represents a breakthrough in wrist fracture care. The product improves the experience for both caregiver and patient as it is quick and easy to apply and provides stable support, simplifying day-to-day life during the healing process.
Page 8
Essity Aktiebolag (publ) Interim Report Q3, 2025 7 Net sales Net sales increased organically 0.8%, driven by higher volumes and sales prices. The product mix was slightly negative on account of growth in retailer brands in Consumer Tissue. The product mix was positive for other categories. Growth was negative in Europe. Growth was strong in both North and Latin America. Incontinence Products Retail and Feminine Care reported strong organic growth driven by higher volumes and prices. The Baby Care market in Europe remained challenging during the quarter, and growth in Baby Care was negative. In contrast, our leading Baby Care brand Libero noted strong growth in the Nordic region. Growth in Consumer Tissue was negative due to lower volumes in Europe. EBITA excl. IAC EBITA and the EBITA margin excl. IAC increased mainly due to lower costs of goods sold, higher volumes and sales prices. Sales and administration costs increased. Currency translation effects had a negative impact on earnings of SEK 139m. Consumer Goods Financial overview 2025:3 2024:3 % Net sales, SEKm 18,583 19,410 -4 Organic sales growth, % 0.8 3.0 Gross profit margin excl. IAC, % 29.9 28.5 EBITA excl. IAC, SEKm 2,362 2,285 3 EBITA margin excl. IAC, % 12.7 11.8 ROCE excl. IAC, % 17.5 17.1 Operating cash flow, SEKm 2,080 2,793 -26 Net sales 2509 by region Net sales EBITA excl. IAC Change in net sales % 2025:3 vs 2024:3 Total -4.3 Volume 0.2 Price/Mix 0.6 Organic growth 0.8 Acquisitions 0.0 Divestments 0.0 Currency translation -5.1 Organic sales growth % 2025:3 vs 2024:3 % of net sales Incontinence Products Retail 9.1 16 Feminine Care 4.6 18 Baby Care -1.3 9 Consumer Tissue -1.9 57 67% 26% 4% 3% Europe Latin America North America Other - 10 - 5 0 5 10 0 5,000 10,000 15,000 20,000 25,000 30,000 2023:3 2023:4 2024:1 2024:2 2024:3 2024:4 2025:1 2025:2 2025:3 Net sales Organic sales growth % SEKm % 6 8 10 12 14 1,000 1,500 2,000 2,500 3,000 2023:3 2023:4 2024:1 2024:2 2024:3 2024:4 2025:1 2025:2 2025:3 EBITA excl. IAC EBITA margin excl. IAC % SEKm % The Saba Buenas Noches Night Towels ensures better sleep during heavy flow nights. The improved anti-leak barriers provide security and comfort throughout the night. • Continued strong growth for Incontinence Products Retail and Feminine Care • Libero captured market share s in the Nordic region • Strong growth in Latin America • Higher margin
Page 9
Essity Aktiebolag (publ) Interim Report Q3, 2025 8 Net sales Net sales increased organically 0.7%. The product mix remained favorable, featuring an increased share of premium products and higher sales prices. Volumes declined, negatively affected by reduced demand in the hotel and restaurant sector. Growth was high in Latin America and stable in Europe. In North America, growth was negative. EBITA excl. IAC EBITA and the EBITA margin excl. IAC declined, mainly due to the higher costs of goods sold and sales and administration. Higher sales prices combined with the favorable mix trend had a positive impact on earnings. Currency translation effects had a negative impact on earnings of SEK 123m. Tork has launched a new soap designed for warmer climates. Professional Hygiene Financial overview 2025:3 2024:3 % Net sales, SEKm 9,183 9,729 -6 Organic sales growth, % 0.7 -0.8 Gross profit margin excl. IAC, % 32.5 31.8 EBITA excl. IAC, SEKm 1,676 1,812 -8 EBITA margin excl. IAC, % 18.3 18.6 ROCE excl. IAC, % 26.2 28.7 Operating cash flow, SEKm 1,880 2,153 -13 Net sales 2509 by region Net sales EBITA excl. IAC Change in net sales % 2025:3 vs 2024:3 Total -5.6 Volume -1.4 Price/Mix 2.1 Organic growth 0.7 Acquisitions 0.0 Divestments 0.0 Currency translation -6.3 46% 41% 9% 4% Europe North America Latin America Other - 10 0 10 5,000 7,000 9,000 11,000 13,000 2023:3 2023:4 2024:1 2024:2 2024:3 2024:4 2025:1 2025:2 2025:3 Net sales Organic sales growth % SEKm % 10 12 14 16 18 20 0 500 1,000 1,500 2,000 2,500 2023:3 2023:4 2024:1 2024:2 2024:3 2024:4 2025:1 2025:2 2025:3 EBITA excl. IAC EBITA margin excl. IAC % SEKm % • Sequential improvement in sales despite continued challenging market conditions • Strong growth in premium products • Higher sales prices
Page 10
Essity Aktiebolag (publ) Interim Report Q3, 2025 9 Net sales Net sales decreased 3.7% compared with the corresponding period a year ago and amounted to SEK 103,799m (107,741). Sales increased organically 1.7%. All business areas reported positive organic growth. Volumes for the Group were stable, with higher volumes in Consumer Goods and Health & Medical. However, volumes were lower in Professional Hygiene, mainly due to lower demand in the hotel and restaurant sector. Higher prices had a positive impact on growth, mainly driven by Professional Hygiene and Consumer Goods. The mix was stable for the Group. Operating profit The gross margin increased 0.6 percentage points to 33.2% (32.6). The gross margin excl. IAC amounted to 33.2% (33.0). Earnings were positively impacted by higher sales prices. The costs of goods sold increased, mainly due to higher raw material and distribution costs, including trade tariffs. Energy costs were lower. Savings in cost of goods sold amounted to approximately SEK 310m. EBITA declined 3% to SEK 14,498m (14,890) and EBITA excl. IAC decreased 6% to SEK 14,455m (15,375). Excluding currency translation effects, EBITA excl. IAC was unchanged compared with the preceding year. The EBITA margin excl. IAC amounted to 13.9% (14.3). Sales and administration costs increased to 19.3% (18.8), of which marketing costs accounted for 5.2% (5.3). IAC amounted to SEK 62m (-555). Group 2509 2409 % Net sales, SEKm 103,799 107,741 -4 Organic sales growth, % 1.7 -1.0 Gross profit margin excl. IAC, % 33.2 33.0 EBITA excl. IAC, SEKm 14,455 15,375 -6 EBITA margin excl. IAC, % 13.9 14.3 ROCE excl. IAC, % 17.1 17.6 Operating cash flow, SEKm 10,629 13,945 -24 Financial items Financial items decreased to SEK -1,075m (-1,515) on account of lower average net debt. Higher interest rates had a negative impact on net interest items. Tax The tax expense was SEK 3,217m (3,325), corresponding to a tax rate of 25.3% (26.7). The tax expense excl. IAC was SEK 3,197m (3,452), corresponding to a tax rate of 25.3% (26.5). Profit for the period Profit for the period, total operations, amounted to SEK 9,494m (18,155). Profit for the period, continuing operations, was SEK 9,494m (9,140). Health & Medical 2509 2409 % Net sales, SEKm 20,542 21,182 -3 Organic sales growth, % 1.1 3.3 Gross profit margin excl. IAC, % 44.0 45.2 EBITA excl. IAC, SEKm 3,650 4,148 -12 EBITA margin excl. IAC, % 17.8 19.6 ROCE excl. IAC, % 15.1 15.6 Operating cash flow, SEKm 3,101 3,883 -20 Consumer Goods 2509 2409 % Net sales, SEKm 56,302 58,420 -4 Organic sales growth, % 2.3 -1.1 Gross profit margin excl. IAC, % 30.0 29.3 EBITA excl. IAC, SEKm 7,173 7,264 -1 EBITA margin excl. IAC, % 12.7 12.4 ROCE excl. IAC, % 17.6 18.4 Operating cash flow, SEKm 4,897 6,566 -25 Professional Hygiene 2509 2409 % Net sales, SEKm 26,943 28,144 -4 Organic sales growth, % 0.7 -3.8 Gross profit margin excl. IAC, % 31.8 31.5 EBITA excl. IAC, SEKm 4,614 5,012 -8 EBITA margin excl. IAC, % 17.1 17.8 ROCE excl. IAC, % 25.3 26.0 Operating cash flow, SEKm 3,424 4,471 -23 First nine months 2025
Page 11
Essity Aktiebolag (publ) Interim Report Q3, 2025 10 Sustainability Sustainability is integrated into Essity’s strategy and is a priority, with ambitious Group targets in several areas. The outcome for three of the targets is presented below. More information on these and other targets can be found in Essity’s Annual Report. Health and safety: 2025 Target: -75% vs 2019 Reduction in total recordable incident rate 2021 2022 2023 2024 9M 2025 -45% -39% -58% -66% -63% Total recordable incidents (TRI) include lost time accidents (LTA), restricted work cases (RWC) and medical treatment cases (MTC) Science-based emissions targets: 2030 Target: -35% vs 2016 Reduction in absolute greenhouse gas emissions, Scope 1 and 2 2021 2022 2023 2024 9M 2025* -16% -17% -27% -27% -27% *Outcome for last 12 months Sustainable innovations: Target: >50% annually Percentage leading to social and/or environmental improvements 2021 2022 2023 2024 9M 2025 59% 72% 85% 87% 78% Events during the quarter Anand Chandarana appointed new President of Business Unit Health & Medical On August 14, 2025, Essity announced that Anand Chandarana had been appointed President of Business Unit Health & Medical. He assumed his role on September 1, 2025 and also joined the company’s Executive Management Team. Anand Chandarana has been with Essity and the business unit Health & Medical since 2020, most recently as Vice President Commercial Development. Change to Essity’s Executive Management Team On September 19, 2025, Essity announced that Donato Giorgio, President Global Supply Chain and member of the Executive Management Team, will leave Essity. Donato Giorgio will leave his position October 31, 2025. Events after the quarter Essity strengthens conditions for profitable growth On October 23, 2025, Essity announced that the company launches measures to create better conditions for profitable growth. Actions include an organizational change that decentralizes decision-making and strengthens end-to-end accountability for each product category, and a cost savings program that is expected to generate annual savings of approximately SEK 1bn with full effect by the end of 2026. The new organization will consist of the business areas Health & Medical, Personal Care, Consumer Tissue, and Professional Hygiene. Tuomas Yrjölä, President Global Marketing & Innovation, has been appointed President Personal Care. Volker Zöller, President Consumer Goods EMEA, has been appointed President Consumer Tissue. Anand Chandarana and Pablo Fuentes have been appointed President Health & Medical and President Professional Hygiene, respectively, also in the new organization. The changes will apply as of January 1, 2026. Stockholm, October 23, 2025 Essity Aktiebolag (publ) Ulrika Kolsrud President & CEO Other Group information Essity is a global, leading hygiene and health company . Every day, our products, solutions and services are used by a billion people around the world. Our purpose is to break barriers to well-being for the benefit of consumers, patients, caregivers, customers and society. Sales are conducted in approximately 150 countries under the leading global brands TENA and Tork, and other strong brands such as Actimove, Cutimed, JOBST, Knix, Leukoplast, Libero, Libresse, Lotus, Modibodi, Nosotras, Saba, Tempo, TOM Organic and Zewa. In 2024, Essity had net sales of approximately SEK 146bn (EUR 13bn) and employed 36,000 people. The company’s headquarters is in Stockholm, Sweden and Essity is listed on Nasdaq Stockholm. More information at essity.com and follow Essity on social media. NB: This information is such information that Essity Aktiebolag (publ) is obligated to make public pursuant to the EU Market Abuse Regulation. This report has been prepared in both Swedish and English versions. In case of variations in the content between the two versions, the Swedish version shall govern. The information was submitted for publication, through the agency of Karl Stoltz, Public Relations Director at 07:00 a.m. CET on October 23, 2025. This report has not been reviewed by the company’s auditors.
Page 12
Essity Aktiebolag (publ) Interim Report Q3, 2025 11 Condensed consolidated income statement SEKm 2025:3 2024:3 % 2509 2409 % Net sales 34,638 36,274 -5 103,799 107,741 -4 Cost of goods sold -23,065 -24,448 -69,351 -72,198 Items affecting comparability (IAC) - cost of goods sold 25 136 3 -377 Gross profit 11,598 11,962 -3 34,451 35,166 -2 Gross profit excl. IAC 11,573 11,826 -2 34,448 35,543 -3 Sales, general and administration costs -6,517 -6,735 -19,993 -20,232 Items affecting comparability (IAC) - sales, general and administration costs 71 -103 40 -108 Share of profits of associates and joint ventures1) ─ 6 ─ 64 Operating profit before amortization of acquisition- related intangible assets (EBITA) 5,152 5,130 0 14,498 14,890 -3 Operating profit before amortization of acquisition- related intangible assets (EBITA) excl. IAC 5,056 5,097 -1 14,455 15,375 -6 Amortization of acquisition-related intangible assets -243 -262 -740 -840 Items affecting comparability (IAC) - acquisition- related intangible assets ─ ─ 19 -70 Operating profit 4,909 4,868 1 13,777 13,980 -1 Operating profit excl. IAC 4,813 4,835 0 13,715 14,535 -6 Share of profits of associates and joint ventures1) -4 ─ 9 ─ Financial items -369 -430 -1,075 -1,515 Profit before tax 4,536 4,438 2 12,711 12,465 2 Profit before tax excl. IAC 4,440 4,405 1 12,649 13,020 -3 Income taxes -1,178 -1,109 -3,217 -3,325 Profit for the period, continuing operations 3,358 3,329 1 9,494 9,140 4 Profit for the period excl. IAC, continuing operations 3,289 3,308 -1 9,452 9,568 -1 Profit for the period, discontinued operations ─ ─ ─ 9,015 Profit for the period, total operations 3,358 3,329 1 9,494 18,155 -48 Items affecting comparability (IAC) before tax 96 33 62 -555 Items affecting comparability (IAC) after tax 69 21 42 -428 Tax on amortization of acquisition-related intangible assets 72 73 218 236 1) Until 2024, the share of results of associates and joint ventures was recognized in operating profit. From 2025 onwards, these results are recognized below operating profit. SEKm 2025:3 2024:3 2509 2409 Earnings attributable to: Owners of the Parent company Profit for the period, continuing operations 3,341 3,314 9,448 9,095 Profit for the period, discontinued operations ─ ─ ─ 8,919 Profit for the period, total operations 3,341 3,314 9,448 18,014 Non-controlling interests Profit for the period, continuing operations 17 15 46 45 Profit for the period, discontinued operations ─ ─ ─ 96 Profit for the period, total operations 17 15 46 141 Earnings per share -owners of the Parent company Earnings per share before and after dilution effects, continuing operations, SEK 4.86 4.73 13.68 12.96 Earnings per share before and after dilution effects, discontinued operations, SEK ─ 0.00 ─ 12.72 Earnings per share before and after dilution effects, total operations, SEK 4.86 4.73 13.68 25.68 Average numbers of shares before and after dilution effects, million 687.4 700.0 690.7 701.5 Financial statements
Page 13
Essity Aktiebolag (publ) Interim Report Q3, 2025 12 Consolidated statement of comprehensive income SEKm 2025:3 2024:3 % 2509 2409 % Profit for the period, continuing operations 3,358 3,329 1 9,494 9,140 4 Profit for the period, discontinued operations ─ 0 ─ 9,015 Profit for the period, total operations 3,358 3,329 1 9,494 18,155 -48 Other comprehensive income for the period Items that will not be reclassified to the income statement Actuarial gains/losses on defined benefit pension plans 795 -61 1,206 798 Fair value through other comprehensive income 2 3 2 4 Income tax attributable to components in other comprehensive income -192 7 -307 -228 Total, continuing operations 605 -51 901 574 Total operations 605 -51 901 574 SEKm 2025:3 2024:3 2509 2409 Items that have been or may be reclassified subsequently to the income statement Cash flow hedges: Result from remeasurement of derivatives recognized in equity -72 -104 -556 -349 Transferred to profit or loss for the period 35 363 109 1,526 Translation differences in foreign operations -710 -3,226 -8,257 719 Gains/losses from hedges of net investments in foreign operations 341 492 1,722 -577 Income tax attributable to components in other comprehensive income -58 -173 -258 -209 Total, continuing operations -464 -2,648 -7,240 1,110 Total, discontinued operations ─ ─ ─ -557 Total operations -464 -2,648 -7,240 553 Other comprehensive income for the period, net of tax 141 -2,699 -6,339 1,127 Of which, continuing operations 141 -2,699 -6,339 1,684 Of which, discontinued operations ─ ─ ─ -557 Total comprehensive income for the period 3,499 630 3,155 19,282 Of which, continuing operations 3,499 630 3,155 10,824 Of which, discontinued operations ─ ─ ─ 8,458 Total comprehensive income attributable to: Owners of the Parent company 3,484 630 3,154 18,763 Non-controlling interests 15 0 1 519
Page 14
Essity Aktiebolag (publ) Interim Report Q3, 2025 13 Consolidated balance sheet SEKm Sep 30, 2025 Sep 30, 2024 Dec 31, 2024 ASSETS Non-current assets Goodwill 37,614 39,769 41,137 Intangible assets 18,818 20,679 20,734 Property, plant and equipment 46,130 45,478 48,304 Right-of-use assets 3,807 3,916 4,088 Investments in associates and joint ventures 311 330 351 Shares and participations 8 8 8 Surplus in funded pension plans 3,489 3,788 2,475 Non-current financial assets 124 127 128 Deferred tax assets 2,279 2,195 2,326 Other non-current assets 747 746 824 Total non-current assets 113,327 117,036 120,375 Current Assets Inventories 19,193 18,814 18,914 Trade receivables 22,425 22,447 23,538 Current tax assets 1,373 1,243 1,673 Other current receivables 3,569 3,860 4,480 Current financial assets 1,491 5,166 5,342 Non-current assets held for sale 13 ─ ─ Cash and cash equivalents 6,229 11,826 10,962 Total current assets 54,293 63,356 64,909 Total assets 167,620 180,392 185,284 SEKm Sep 30, 2025 Sep 30, 2024 Dec 31, 2024 EQUITY AND LIABILITIES Equity Owners of the Parent company Share capital 2,350 2,350 2,350 Reserves 6,035 9,624 13,224 Retained earnings including profit/loss for the period 75,181 71,408 72,740 Equity attributable to owner of the Parent company 83,566 83,382 88,314 Non-controlling interests 417 453 427 Total equity 83,983 83,835 88,741 Non-current liabilities Non-current financial liabilities 32,011 39,205 40,674 Provisions for pensions 2,438 2,472 2,578 Deferred tax liabilities 6,588 7,183 6,978 Other non-current provisions 410 511 507 Other non-current liabilities 101 511 516 Total non-current liabilities 41,548 49,882 51,253 Current liabilities Current financial liabilities 7,190 8,352 6,424 Trade payables 14,672 16,009 17,098 Current tax liabilities 1,501 2,003 1,442 Current provisions 982 1,024 1,377 Other current liabilities 17,744 19,287 18,949 Total current liabilities 42,089 46,675 45,290 Total equity and liabilities 167,620 180,392 185,284
Page 15
Essity Aktiebolag (publ) Interim Report Q3, 2025 14 Consolidated statement of change in equity SEKm Sep 30, 2025 Sep 30, 2024 Dec 31, 2024 Equity attributable to owners of the Parent company Value, beginning of the period 88,314 70,846 70,846 Total comprehensive income for the period 3,154 18,763 24,719 Dividend -5,711 -5,443 -5,443 Repurchase of own shares -2,605 -1,208 -2,224 Acquisition of non-controlling interests ─ ─ -8 Transferred to cost of hedged investments 5 29 31 Revaluation effect upon acquisition of non-controlling interests 409 395 393 Value, end of period 83,566 83,382 88,314 Non-controlling interests Value, beginning of period 427 8,559 8,559 Total comprehensive income for the period 1 519 558 Dividend -11 -1 -23 Divestment of non-controlling interests ─ -8,624 -8,624 Acquisition of non-controlling interests ─ ─ -43 Value, end of period 417 453 427 Total equity, value end of period 83,983 83,835 88,741
Page 16
Essity Aktiebolag (publ) Interim Report Q3, 2025 15 Consolidated cash flow statement SEKm 2509 2409 Operating activities Operating profit 13,777 13,980 Adjustments for non-cash items1) 5,770 6,057 Operating profit excluding non-cash items 19,547 20,037 Interest paid -2,450 -2,162 Interest received 217 427 Other financial items -57 -176 Capitalized expenditures to fulfill contracts with customers -362 -349 Change in liabilities relating to restructuring programs, etc. -249 -281 Income taxes paid -3,460 -3,673 Cash flow from operating activities before changes in working capital 13,186 13,823 Cash flow from changes in working capital Change in inventories -1,622 -1,330 Change in operating receivables 79 -1,218 Change in operating liabilities -1,726 2,163 Cash flow from operating activities, continuing operations 9,917 13,438 Cash flow from operating activities, discontinued operations ─ -368 Cash flow from operating activities, total operations 9,917 13,070 Investing activities Acquisitions of Group companies and other operations ─ -17 Divestments of Group companies and other operations 5 17,980 Investments in intangible assets and property, plant and equipment -4,630 -4,745 Paid interest capitalized in intangible assets and property, plant and equipment -9 -33 Sale of property, plant and equipment 202 55 Purchase and sale of financial assets with short maturities 3,814 -1,357 Cash flow from investing activities, continuing operations -618 11,883 Cash flow from investing activities, discontinued operations ─ -87 Cash flow from investing activities, total operations -618 11,796 SEKm 2509 2409 Financing activities Proceeds from borrowings 886 207 Repayment of borrowings2) -5,056 -12,736 Payment of lease liabilities2) -816 -794 Change in borrowings with short maturities, etc. -464 3 Dividend -5,711 -5,443 Dividend to non-controlling interests -11 -1 Repurchase of own shares -2,605 -1,208 Cash flow from financing activities, continuing operations -13,777 -19,972 Cash flow from financing activities, discontinued operations ─ -12 Cash flow from financing activities, total operations -13,777 -19,984 Cash flow for the period, continuing operations -4,478 5,349 Cash flow for the period, discontinued operations ─ -467 Cash flow for the period, total operations -4,478 4,882 Cash and cash equivalents at the beginning of the period 10,962 6,927 Translation differences in cash and cash equivalents -255 17 Cash and cash equivalents at the end of the period 6,229 11,826 1) Adjustments for non-cash items SEKm 2509 2409 Depreciation/amortization and impairment of non-current assets 5,296 5,678 Depreciation of capitalized selling expenses 341 353 Gain/loss on sale of assets -67 -28 Gain/loss on divestment and liquidation 2 ─ Non-cash items relating to restructuring program 79 133 Other 119 -79 Total 5,770 6,057 2) From the fourth quarter of 2024, payments of lease liabilities are presented separately in the cash flow statement. The comparative figures have been restated.
Page 17
Essity Aktiebolag (publ) Interim Report Q3, 2025 16 Consolidated cash flow statement, cont. SEKm 2509 2409 Reconciliation with consolidated operating cash flow statement Cash flow for the period, continuing operations -4,478 5,349 Proceeds from borrowings -886 -207 Repayment of borrowings1) 5,056 12,736 Payment of lease liabilities1) 816 794 Change in borrowings with short maturities, etc. 464 -3 Purchase and sale of financial assets with short maturities -3,814 1,357 Net debt in acquired and divested operations ─ 5,928 Investments in operating assets through leases -573 -322 Accrued interest, etc. 1,214 397 Net cash flow according to consolidated operating cash flow statement -2,201 26,029 1) From the fourth quarter of 2024, payments of lease liabilities are presented separately in the cash flow statement. The comparative figures have been restated.
Page 18
Essity Aktiebolag (publ) Interim Report Q3, 2025 17 Condensed Parent company income statement SEKm 2509 2409 Administrative expenses -688 -926 Other operating income 183 494 Operating profit/loss -505 -432 Financial items 12,185 12,147 Profit/loss before tax 11,680 11,715 Income taxes 90 16 Profit/loss for the period 11,770 11,731 Parent company statement of comprehensive income SEKm 2509 2409 Profit/loss for the period 11,770 11,731 Other comprehensive income ─ ─ Total comprehensive income 11,770 11,731 Condensed Parent company balance sheet SEKm Sep 30, 2025 Dec 31, 2024 Assets Intangible assets 0 0 Property, plant and equipment 10 12 Financial non-current assets 176,665 177,152 Total non-current assets 176,675 177,164 Total current assets 857 770 Total assets 177,532 177,934 Equity, provisions and liabilities Equity Restricted equity 2,350 2,350 Non-restricted equity 85,467 82,013 Total equity 87,817 84,363 Untaxed reserves 827 827 Provisions 784 818 Non-current liabilities 30,687 37,877 Current liabilities 57,417 54,049 Total equity, provisions and liabilities 177,532 177,934 Condensed financial statements, Parent company
Page 19
Essity Aktiebolag (publ) Interim Report Q3, 2025 18 Note 1 Accounting principles This interim report has been prepared in accordance with IAS 34 and recommendation RFR 1 of the Swedish Corporate Reporting Board and RFR 2 for the Parent company. On January 1, 2025, the International Accounting Standards Board (IASB®) published amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability, that entered into force following approval by the EU. Essity Aktiebolag (publ) applies this amendment, which has not had any material impact on the Group’s or the Parent company’s financial statements. In other respects, the accounting principles and calculation methods applied correspond to those described in Essity’s 2024 Annual Report. Note 2 Risks and uncertainties Processes for risk management Essity’s Board determines the Group’s strategic direction based on recommendations from the Executive Management Team. Responsibility for the long-term, overall management of strategic risks corresponds to the company’s delegation structure, from the Board of Directors to the CEO and from the CEO to the Business Unit Presidents. This means that most operational risks are managed by Essity’s business units at the local level, but they are centrally coordinated when considered necessary. The tools used for coordination consist primarily of the business units’ regular reporting and the annual strategy process, which includes risks and risk management. Essity’s financial risk management is centralized, as is its internal bank for financial transactions conducted by Group companies and the management of the Group’s energy risks. Financial risks are managed in accordance with the Group’s Finance Policy, which is adopted by Essity’s Board and, together with Essity’s Energy Risk Policy, provides a management framework. Risks are continuously compiled and monitored to ensure compliance with these guidelines. Essity has also centralized other risk management. Essity has a staff function for internal audit, which monitors compliance with the Group’s policies. Essity’s risk exposure and risk management are described on pages 41–46 and 59–60 in the 2024 Annual Report. No significant changes have taken place that have affected the reported risks. Risks in conjunction with company acquisitions are analyzed in the due diligence processes that Essity carries out prior to all acquisitions. In cases where acquisitions have been carried out that may affect the assessment of Essity’s risk exposure, these are described under the heading “Events during the quarter” in the interim or year-end reports. The introduction or escalation of trade disputes, such as the imposition of significantly higher tariffs by the US administration on imports from certain trading partners, and any subsequent retaliation by such trading partners, may have an impact on tariffs or other barriers imposed on importers of goods between territories. This could directly or indirectly affect the Group’s financial position and operating results, by increasing the prices of its products, weakening consumer purchasing power or otherwise causing economic instability in the affected countries. Notes
Page 20
Essity Aktiebolag (publ) Interim Report Q3, 2025 19 Note 3 Financial assets and liabilities Measurement principles and classifications of financial instruments, as described in Essity’s 2024 Annual Report, Note E1, were applied consistently throughout the reporting period. Financial liabilities are measured at amortized cost provided they are not part of a fair value hedge when they are recognized at fair value through profit or loss. The fair value of trade receivables, other current and non-current receivables, cash and cash equivalents, trade payables and other current and non-current liabilities is estimated to be equal to their carrying amount. SEKm Carrying amount Fair value Carrying amount Fair value Measure- ment level 1) Sep 30, 2025 Sep 30, 2025 Dec 31, 2024 Dec 31, 2024 Assets Derivatives 907 907 1,102 1,102 2 Non-current financial assets 107 107 109 109 1 Total assets 1,014 1,014 1,211 1,211 Liabilities Derivatives 1,374 1,374 3,304 3,304 2 Current financial liabilities 2) 5,788 5,788 4,572 4,572 2 Non-current financial liabilities 2) 28,296 27,673 34,962 34,176 2 Total liabilities 35,458 34,835 42,838 42,052 1) No financial instruments have been classified to level 3. 2) The measurement level refers to liabilities measured at fair value in a hedging relationship. Note 4 The share Number of shares 2025:3 2024:3 2509 2409 Number of shares, end of period 693,054,489 702,342,489 693,054,489 702,342,489 Of which class A-shares 58,473,654 60,412,986 58,473,654 60,412,986 Of which class B-shares 634,580,835 641,929,503 634,580,835 641,929,503 Number of Class B shares held by Essity, end of period 7,855,598 4,050,000 7,855,598 4,050,000 Number of outstanding shares before and after dilution, end of period 685,198,891 698,292,489 685,198,891 698,292,489 Average number of Class B shares held by Essity 5,694,757 2,317,891 5,509,224 793,051 Average number of shares before and after dilution 687,359,732 700,024,598 690,675,287 701,549,438 At the Annual General Meeting on March 27, 2025, a resolution was passed to cancel the company’s own shares, which was carried out in the second quarter. Following the cancellation of 9,288,000 Class B shares, Essity has a total of 693,054,489 outstanding shares. Note 5 Acquisitions and divestments On March 21, 2024, Essity completed the divestment of its holding of 51.59% of shares in the Asian hygiene company Vinda International Holdings Limited (Vinda). The sales proceeds amounted to approximately HKD 14.6bn (SEK 19,360m). Statement of profit for the period, discontinued operations SEKm 2509 2409 Profit for the period, Vinda ─ 217 Other profit for the period, Vinda ─ 8 7981) Profit for the period, discontinued operations ─ 9,015 1) Of which: Profit from divestment ─ 8,366 Reclassification of realized translation differences after tax ─ 748 Transaction cost ─ -227 Impairment of Essity owned intangible asset related to Vinda after tax ─ -89 Income statement, discontinued operations SEKm 2509 2409 Net sales ─ 4,533 Operating expenses ─ -4,261 Operating profit ─ 272 Financial items ─ -27 Profit before tax ─ 245 Income taxes ─ -28 Profit for the period, discontinued operations ─ 217
Page 21
Essity Aktiebolag (publ) Interim Report Q3, 2025 20 Note 5 cont. Income statement, discontinued operations, cont. SEKm 2509 2409 Profit for the period, discontinued operations attributable to: Owners of the Parent company ─ 8,919 Non-controlling interests ─ 96 Earnings per share, discontinued operations - Owners of the parent company Earnings per share, discontinued operations before and after dilution effects, SEK ─ 12.72 Average numbers of shares before and after dilution, million ─ 701.5 Note 6 Use of non-International Financial Reporting Standards (IFRS®) performance measures Guidelines for Alternative Performance Measures (APMs) for companies with securities listed on a regulated market in the EU have been issued by ESMA (European Securities and Markets Authority). These guidelines are to be applied for APMs not supported under IFRS. This interim report refers to a number of performance measures not defined in IFRS. These performance measures are used to help investors, management and other stakeholders analyze the company’s operations. These non-IFRS performance measures may differ from similarly titled measures among other companies. Essity’s 2024 Annual Report, pages 124–128, describes the various non-IFRS performance measures that are used as a complement to the financial information presented in accordance with IFRS. Abbreviations are used in the report for the performance and return measures below. Capital employed SEKm 2509 2409 2412 Total assets 167,620 180,392 185,284 -Financial assets -11,333 -20,907 -18,907 -Non-current non-interest bearing liabilities -7,099 -8,205 -8,001 -Current non-interest bearing liabilities -34,899 -38,323 -38,866 Capital employed 114,289 112,957 119,510 Working capital SEKm 2509 2409 2412 Inventories 19,193 18,814 18,914 Trade receivables 22,425 22,447 23,538 Other current receivables 3,569 3,860 4,480 Trade payables -14,672 -16,009 -17,098 Other current liabilities -17,744 -19,287 -18,949 Other 45 209 -139 Working capital 12,816 10,034 10,746 Abbreviation Complete expression EBITA Operating profit before amortization of acquisition-related intangible assets EBITDA Operating profit before depreciation and amortization of property, plant and equipment and intangible assets IAC Items affecting comparability ROCE Return on capital employed ROE Return on equity
Page 22
Essity Aktiebolag (publ) Interim Report Q3, 2025 21 Note 6 cont. Net debt SEKm 2509 2409 2412 Surplus in funded pension plans 3,489 3,788 2,475 Non-current financial assets 124 127 128 Current financial assets 1,491 5,166 5,342 Cash and cash equivalents 6,229 11,826 10,962 Financial assets 11,333 20,907 18,907 Non-current financial liabilities 32,011 39,205 40,674 Provisions for pensions 2,438 2,472 2,578 Current financial liabilities 7,190 8,352 6,424 Financial liabilities 41,639 50,029 49,676 Net debt 30,306 29,122 30,769 EBITA SEKm 2025:3 2024:3 2509 2409 Operating profit 4,909 4,868 13,777 13,980 -Amortization of acquisition-related intangible assets 243 262 740 840 -Items affecting comparability (IAC) - impairment of acquisition related intangible assets 0 0 -19 70 Operating profit before amortization and impairment of acquisition-related intangible assets (EBITA) 5,152 5,130 14,498 14,890 EBITA margin (%) 14.9 14.1 14.0 13.8 -Items affecting comparability (IAC) - cost of goods sold -25 -136 -3 377 -Items affecting comparability (IAC) - sales, general and administration -71 103 -40 108 EBITA excl. IAC 5,056 5,097 14,455 15,375 EBITA margin excl. IAC (%) 14.6 14.1 13.9 14.3 EBITDA SEKm 2025:3 2024:3 2509 2409 Operating profit 4,909 4,868 13,777 13,980 -Amortization of acquisition-related intangible assets 243 262 740 840 -Depreciation/amortization 1,245 1,249 3,694 3,712 -Depreciation right-of-use asset 277 273 834 812 -Impairment 23 24 33 26 -Items affecting comparability (IAC) - impairment net 10 2 14 218 -Items affecting comparability (IAC) - impairment of acquisition- related intangible assets 0 0 -19 70 EBITDA 6,707 6,678 19,073 19,658 -Items affecting comparability (IAC) excluding depreciation/amortization and impairment -106 -35 -57 267 EBITDA excl. IAC 6,601 6,643 19,016 19,925 Organic sales growth SEKm 2025:3 2024:3 2509 2409 Organic sales growth 329 704 1,782 -1,102 Acquisitions ─ ─ ─ ─ Divestments -7 -20 -28 -1,318 Exchange rate effect1) -1,958 -1,502 -5,696 -361 Recognized change -1,636 -818 -3,942 -2,781 1) Consists solely of currency translation effects
Page 23
Essity Aktiebolag (publ) Interim Report Q3, 2025 22 Note 7 Segment reporting The tables below show parts of the income statement broken down by operating segment: Health & Medical, Consumer Goods and Professional Hygiene. SEKm 2025:3 Health & Medical Consumer Goods Professional Hygiene Other operations Total Group Net sales 6,883 18,583 9,183 -11 34,638 Cost of goods sold -3,865 -13,018 -6,196 14 -23,065 Sales, general and administration -1,758 -3,203 -1,311 -245 -6,517 Share of results of associates and joint ventures ─ ─ ─ ─ ─ Operating profit/loss before amortization of acquisition-related intangible assets (EBITA) excl. IAC 1,260 2,362 1,676 -242 5,056 Amortization of acquisition-related intangible assets -183 -55 -5 ─ -243 Operating profit/loss excl. IAC 1,077 2,307 1,671 -241 4,813 Items affecting comparability (IAC) -15 92 20 -1 96 Operating profit/loss 1,062 2,399 1,691 -243 4,909 Share of results of associates and joint ventures -4 Financial items -369 Tax expense for the period -1,178 Profit for the period, continuing operations 3,358 SEKm 2024:3 Health & Medical Consumer Goods Professional Hygiene Other operations Total Group Net sales 7,127 19,410 9,729 8 36,274 Cost of goods sold -3,939 -13,884 -6,631 6 -24,448 Sales, general and administration -1,802 -3,246 -1,287 -400 -6,735 Share of results of associates and joint ventures ─ 5 1 ─ 6 Operating profit/loss before amortization of acquisition-related intangible assets (EBITA) excl. IAC 1,386 2,285 1,812 -386 5,097 Amortization of acquisition-related intangible assets -195 -61 -6 ─ -262 Operating profit/loss excl. IAC 1,191 2,224 1,806 -386 4,835 Items affecting comparability (IAC) -1 -9 151 -108 33 Operating profit/loss 1,190 2,215 1,957 -494 4,868 Share of results of associates and joint ventures ─ Financial items -430 Tax expense for the period -1,109 Profit for the period, continuing operations 3,329
Page 24
Essity Aktiebolag (publ) Interim Report Q3, 2025 23 Note 7 cont. SEKm 2509 Health & Medical Consumer Goods Professional Hygiene Other operations Total Group Net sales 20,542 56,302 26,943 12 103,799 Cost of goods sold -11,506 -39,427 -18,383 -35 -69,351 Sales, general and administration -5,386 -9,702 -3,946 -959 -19,993 Share of results of associates and joint ventures ─ ─ ─ ─ ─ Operating profit/loss before amortization of acquisition-related intangible assets (EBITA) excl. IAC 3,650 7,173 4,614 -982 14,455 Amortization of acquisition-related intangible assets -557 -167 -16 ─ -740 Operating profit/loss excl. IAC 3,093 7,006 4,598 -982 13,715 Items affecting comparability (IAC) -2 98 -1 -33 62 Operating profit/loss 3,091 7,104 4,597 -1,015 13,777 Share of results of associates and joint ventures 9 Financial items -1,075 Tax expense for the period -3,217 Profit for the period, continuing operations 9,494 SEKm 2409 Health & Medical Consumer Goods Professional Hygiene Other operations Total Group Net sales 21,182 58,420 28,144 -5 107,741 Cost of goods sold -11,617 -41,311 -19,285 15 -72,198 Sales, general and administration -5,417 -9,904 -3,852 -1,059 -20,232 Share of results of associates and joint ventures ─ 59 5 ─ 64 Operating profit/loss before amortization of acquisition-related intangible assets (EBITA) excl. IAC 4,148 7,264 5,012 -1,049 15,375 Amortization of acquisition-related intangible assets -638 -185 -17 ─ -840 Operating profit/loss excl. IAC 3,510 7,079 4,995 -1,049 14,535 Items affecting comparability (IAC) -53 -404 7 -105 -555 Operating profit/loss 3,457 6,675 5,002 -1,154 13,980 Share of results of associates and joint ventures ─ Financial items -1,515 Tax expense for the period -3,325 Profit for the period, continuing operations 9,140
Page 25
Essity Aktiebolag (publ) Interim Report Q3, 2025 24 Group information by quarter 2025:3 2025:2 2025:1 2024:4 2024:3 2024:2 2024:1 2023:4 2023:3 Net sales, SEKm 34,638 34,185 34,976 37,805 36,274 36,617 34,850 36,625 37,092 Organic sales growth, % 0.9 1.9 2.1 3.9 1.9 -0.9 -4.0 -0.7 2.4 Gross profit, SEKm 11,598 11,389 11,464 11,968 11,962 12,003 11,201 11,675 10,683 Gross profit excl. IAC, SEKm 11,573 11,401 11,474 12,074 11,826 12,150 11,567 11,720 11,670 EBITA, SEKm 5,152 4,628 4,718 4,585 5,130 5,237 4,523 4,611 3,497 EBITA excl. IAC, SEKm 5,056 4,693 4,706 4,969 5,097 5,398 4,880 4,853 5,147 Operating profit, SEKm 4,909 4,386 4,482 4,315 4,868 4,978 4,134 4,341 2,903 Profit for the period, SEKm 3,358 3,053 3,083 2,893 3,329 3,334 2,477 2,858 1,563 Operating cash flow, SEKm 5,324 1,540 3,765 3,297 6,453 3,239 4,253 5,914 6,054 ROCE, % 17.9 16.7 16.7 15.8 17.8 17.9 15.9 16.2 11.7 ROCE excl. IAC, % 17.6 16.9 16.7 17.1 17.7 18.5 17.2 17.1 17.2 Capital employed, SEKm 114,289 115,384 106,478 119,510 112,957 117,076 116,439 110,750 116,928 ROE, % 16.3 15.2 14.6 13.4 15.9 16.1 56.9 14.4 8.2 ROE excl. IAC, % 15.9 15.4 14.5 14.9 15.8 16.6 15.0 15.5 16.5 Debt/equity ratio, % 0.36 0.42 0.34 0.35 0.35 0.40 0.42 0.68 0.75 Equity/assets ratio, % 50 48 46 48 46 46 44 35 34 Net debt, SEKm 30,306 34,177 26,774 30,769 29,122 33,214 34,263 53,703 60,633 Earnings per share, SEK 4.86 4.39 4.43 4.13 4.73 4.72 3.51 4.04 2.20 Earnings per share excl. IAC, SEK 5.01 4.71 4.65 4.85 4.97 5.13 4.33 4.54 4.83 Equity per share, SEK 122 117 115 127 119 119 117 113 115 Margins (%) 2025:3 2025:2 2025:1 2024:4 2024:3 2024:2 2024:1 2023:4 2023:3 Gross margin 33.5 33.3 32.8 31.7 33.0 32.8 32.1 31.9 28.8 Gross margin excl. IAC 33.4 33.4 32.8 31.9 32.6 33.2 33.2 32.0 31.5 EBITA margin 14.9 13.5 13.5 12.1 14.1 14.3 13.0 12.6 9.4 EBITA margin excl. IAC 14.6 13.7 13.5 13.1 14.1 14.7 14.0 13.3 13.9 Operating margin 14.2 12.8 12.8 11.4 13.4 13.6 11.9 11.9 7.8 Operating margin excl. IAC 13.9 13.0 12.7 12.4 13.3 14.0 13.1 12.5 13.1 Financial net margin -1.1 -0.9 -1.1 -1.1 -1.2 -1.3 -1.7 -1.4 -1.7 Profit margin 13.1 11.9 11.7 10.3 12.2 12.3 10.2 10.5 6.1 Profit margin excl. IAC 12.8 12.1 11.6 11.3 12.1 12.7 11.4 11.1 11.4 Income taxes -3.4 -3.0 -2.9 -2.7 -3.1 -3.2 -3.0 -2.7 -1.9 Income taxes excl. IAC -3.3 -3.0 -2.9 -2.8 -3.0 -3.3 -3.3 -2.9 -2.7 Net margin 9.7 8.9 8.8 7.6 9.1 9.1 7.2 7.8 4.2 Net margin excl. IAC 9.5 9.1 8.7 8.5 9.1 9.4 8.1 8.2 8.7 Other financial information
Page 26
Essity Aktiebolag (publ) Interim Report Q3, 2025 25 Information by business area Net sales SEKm 2025:3 2025:2 2025:1 2024:4 2024:3 2024:2 2024:1 2023:4 2023:3 Health & Medical 6,883 6,723 6,936 7,417 7,127 7,213 6,842 7,001 7,158 Consumer Goods 18,583 18,434 19,285 20,472 19,410 19,672 19,338 19,870 19,729 Professional Hygiene 9,183 9,003 8,757 9,923 9,729 9,729 8,686 9,752 10,184 Other -11 25 -2 -7 8 3 -16 2 21 Group 34,638 34,185 34,976 37,805 36,274 36,617 34,850 36,625 37,092 Organic sales growth % 2025:3 2025:2 2025:1 2024:4 2024:3 2024:2 2024:1 2023:4 2023:3 Health & Medical 1.7 0.1 1.7 5.6 2.8 4.5 2.6 4.3 5.8 Consumer Goods 0.8 3.2 2.9 4.5 3.0 -1.3 -4.8 -2.8 -0.4 Professional Hygiene 0.7 0.6 0.7 1.4 -0.8 -3.9 -6.9 0.1 5.7 Group 0.9 1.9 2.1 3.9 1.9 -0.9 -4.0 -0.7 2.4 EBITA excl. IAC SEKm 2025:3 2025:2 2025:1 2024:4 2024:3 2024:2 2024:1 2023:4 2023:3 Health & Medical 1,260 1,159 1,231 1,361 1,386 1,472 1,290 1,125 1,188 Consumer Goods 2,362 2,368 2,443 2,245 2,285 2,434 2,545 2,585 2,395 Professional Hygiene 1,676 1,525 1,413 1,817 1,812 1,868 1,332 1,531 1,887 Other -242 -359 -381 -454 -386 -376 -287 -388 -323 Group 5,056 4,693 4,706 4,969 5,097 5,398 4,880 4,853 5,147 EBITA margin excl. IAC % 2025:3 2025:2 2025:1 2024:4 2024:3 2024:2 2024:1 2023:4 2023:3 Health & Medical 18.3 17.2 17.7 18.3 19.4 20.4 18.9 16.1 16.6 Consumer Goods 12.7 12.8 12.7 11.0 11.8 12.4 13.2 13.0 12.1 Professional Hygiene 18.3 16.9 16.1 18.3 18.6 19.2 15.3 15.7 18.5 Group 14.6 13.7 13.5 13.1 14.1 14.7 14.0 13.3 13.9 Capital employed SEKm 2025:3 2025:2 2025:1 2024:4 2024:3 2024:2 2024:1 2023:4 2023:3 Health & Medical 32,673 33,352 32,366 34,566 33,112 34,245 34,153 32,762 34,956 Consumer Goods 54,133 53,847 52,093 55,293 52,560 54,342 54,612 52,009 54,676 Professional Hygiene 25,311 25,850 25,494 25,998 24,501 25,976 25,663 24,021 25,765 Other 2,172 2,335 -3,4751) 3,653 2,784 2,513 2,011 1,958 1,531 Group 114,289 115,384 106,478 119,510 112,957 117,076 116,439 110,750 116,928 1) Of this amount, SEK 5,711m represents a liability relating to the dividend for Essity’s shareholders paid on April 3, 2025 as decided at the Annual General Meeting on March 27, 2025. ROCE excl. IAC % 2025:3 2025:2 2025:1 2024:4 2024:3 2024:2 2024:1 2023:4 2023:3 Health & Medical 15.3 14.1 14.7 16.1 16.5 17.2 15.4 13.3 13.3 Consumer Goods 17.5 17.9 18.2 16.7 17.1 17.9 19.1 19.4 17.2 Professional Hygiene 26.2 23.8 22.0 28.8 28.7 28.9 21.4 24.6 28.0 Group 17.6 16.9 16.7 17.1 17.7 18.5 17.2 17.1 17.2 Operating cash flow SEKm 2025:3 2025:2 2025:1 2024:4 2024:3 2024:2 2024:1 2023:4 2023:3 Health & Medical 1,471 398 1,232 976 1,674 879 1,330 1,411 1,676 Consumer Goods 2,080 1,160 1,657 1,114 2,793 1,442 2,331 2,506 2,235 Professional Hygiene 1,880 490 1,054 1,678 2,153 1,538 780 2,227 2,370 Other -107 -508 -178 -471 -167 -620 -188 -230 -227 Group 5,324 1,540 3,765 3,297 6,453 3,239 4,253 5,914 6,054
Page 27
Invitation to presentation President and CEO Ulrika Kolsrud and Executive Vice President and CFO Fredrik Rystedt will present the interim report at a live webcast and teleconference at 09:00 CET on October 23, 2025. Link to the live presentation, which can also be viewed afterwards: https://essity.videosync.fi/2025-10-23 Contact information for conference call with the possibility to ask questions: UK: +44 (0) 33 0551 02 00 USA: +1 786 697 35 01 SWE: +46 (0) 8 505 204 24 Please call in well in advance of the start of the presentation. Indicate: “Essity”. Financial calendar 2026 Report for the Quarter 4 and full-year 2025 January 22, 2026 Annual Report 2025 March 2026 Annual General Meeting March 26, 2026 Interim report, Quarter 1 2026 April 23, 2026 Interim report, Quarter 2 2026 July 16, 2026 Interim report, Quarter 3 2026 October 22, 2026 For additional information Fredrik Rystedt, Executive Vice President and CFO, tel: +46 (0) 8 788 51 31 Sandra Åberg, Vice President Investor Relations, tel: +46 (0) 70 564 96 89 Per Lorentz, Vice President Corporate Communications, tel: +46 (0) 73 313 30 55 For more information about Essity, visit essity.com.