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Swedish company Essity's net sales grow 16.1% in Q3 FY23

30 Oct '23

2 min read

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In Q3 FY23, Swedish firm Essity saw a net sales increase of 16.1 per cent to SEK 130,372 million.
Operating profit surged by 74 per cent and adjusted EBITA by 60 per cent, enhancing margins to 11 per cent.
Profit for the period and operating cash flow also experienced significant uplifts, growing by 81 per cent and 75 per cent, respectively.

Sweden-based global health and hygiene company Essity has reported an increase in net sales by 16.1 per cent to Swedish krona (SEK) 130,372 million (approximately $11,685 million) in the third quarter of fiscal 2023 (Q3 FY23), up from SEK 112,339 million last year. Organic sales growth and acquisitions contributed to a 9.8 per cent increase in sales growth. The growth was primarily driven by an increase in price mix at 11.9 per cent, offset by a minus 3.2 per cent drop in volume. Acquisitions added another 1.1 per cent to the growth.

Operating profit before amortisation of acquisition-related intangible assets (EBITA) increased substantially by 74 per cent to SEK 12,323 million. The adjusted EBITA was up by 60 per cent to SEK 14,372 million.

The adjusted EBITA margin increased by 3 percentage points to 11 per cent in Q3 FY23, up from 8 per cent in the prior year. Profit for the period surged by 81 per cent to SEK 6,905 million. Earnings per share (EPS) more than doubled to SEK 9.58, and adjusted EPS increased by 55 per cent to SEK 13.20.

Operating cash flow also showed a significant improvement, increasing by 75 per cent to SEK 11,755 million.

“We can look back on another quarter with high sales growth and higher EBITA margin, where all business areas made positive contributions through profitable growth and margin improvements. In line with our strategy, we continued to grow in the categories and sales channels with the fastest market growth and highest returns. At the same time, the decisions regarding restructuring in professional hygiene and exiting contracts with insufficient profitability in incontinence products health care and baby care, had a negative impact on the sales growth of approximately 2 per cent during the quarter. However, these decisions have improved the structural margin long-term,” said Magnus Growth, president and CEO.

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