Essity Ab Class A · OMXSTO:ESSITY_A
Essity Ab Class A — Q3 2023 Earnings Presentation
25 slides from Essity Ab Class A's earnings presentation, Oct 26, 2023
Slide 1: Interim Report Quarter 3, 2023
Interim Report Quarter 3, 2023
Slide 2: Forward-looking statements
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 and sustainability report for a better understanding of the
Slide 3: Brands care for the hygiene and health of a billion people
Text Every day our brands care for the hygiene and health of a billion people across 150 countries
Slide 4: Three Attractive Business Areas
Three Attractive Business Areas Health & Medical Consumer Goods Professional Hygiene Health & Medical Consumer Goods Professional Hygiene Holistic health and medical Personal and home hygiene Hygiene management solutions along the for all stages of life solutions for a broad set of continuum of care
Slide 5: Key Highlights Q3 2023
Key Highlights Q3 2023 Strong profitable growth with significant improvement in all business areas Progress on key priorities 2023 On path to deliver on our financial targets Strategic review progressing according to plan Interim Report Q3 2023 October 26, 2023 5
Slide 6: Financial Summary
Financial Summary Q3 2023 vs Q3 2022 Adjusted Net Sales Sales Growth1) EBITA2) SEK +4.6% SEK 43,516m Organic: 5,313m +8.5% +3.8% +78% Adjusted Adjusted Adjusted Earnings EBITA Margin2) ROCE2) per Share3) 12.2% 14.6% SEK 4.90 +470bps +620bps 74% 1) Including organic sales growth and acquisitions 2) E
Slide 7: Strong Sales Growth
Strong Sales Growth +0.8% 43,516 +6.9% Restructuring in Acquisitions Professional Hygiene and deliberate exits of contracts 40,109 -3.1% with insufficient profitability in Incontinence Products Health Care and Baby Care Volume Price/Mix had a negative impact on volumes growth with approx. Sales Grow
Slide 8: Higher Adjusted EBITA Margin
Higher Adjusted EBITA Margin +470bps Adjusted EBITA margin growth driven by +630bps -20bps -140bps higher prices, 12.2% better mix and cost savings as well as lower costs for raw material, 7.5% energy and distribution + Higher prices + Better mix + Cost savings A&P higher due to + Lower costs for ra
Slide 9: Strong Development of Sales and Profits
Strong Development of Sales and Profits Net Sales and Sales Growth1) Adjusted EBITA and EBITA margin2) 50000 15% Net Sales, SEKm Sales Growth, % 5800 Adjusted EBITA, SEKm Adjusted EBITA Margin, % Q over last year’s Q 14% 5,313 5300 45000 43,834 43,930 43,516 13% 42,926 4,701 4800 12.2% 12% 40,109 4,
Slide 10: Health & Medical
Hydrofera’ Delta-Cast
Slide 11: Health & Medical – Strong Sales Growth and Margin Development
Health & Medical – Strong Sales Growth and Margin Development +9.1% 7,305 Incontinence Products Health Care +5.2% Lower volumes related to exits of SEK contracts with inadequate profitability 1,190m Adjusted 6,544 -3.3% Medical Solutions EBITA2) +6.6% +77% Strong growth in Wound Care and Compression
Slide 12: Consumer Goods
Consumer Text Goods
Slide 13: Consumer Goods – Strong Growth in High Margin Categories
Consumer Goods – Strong Growth in High Margin Categories +1.3% 25,559 Incontinence Products Retail +14.9% +4.6% & Feminine Care +9.1% Acquisitions Higher volumes, higher prices and better SEK Adjusted mix 2,552m 23,825 -2.1% EBITA2) Baby Care -5.6% & Consumer Tissue +75% +0.6% Price/Mix Focus on pro
Slide 14: Professional Hygiene
Wes da Professional Hygiene
Slide 15: Professional Hygiene – Good Top-line Growth and Significant Margin Improvement
Professional Hygiene – Good Top-line Growth and Significant Margin Improvement +10.9% 10,634 Lower volumes due to focus on SEK profitable growth and restructuring in 1,895m Adjusted USA and Europe EBITA2) +73% 9,733 -5.4% Significantly higher adjusted EBITA and adjusted EBITA margin Price/Mix Adjust
Slide 16: Progress on Key Priorities
Progress on Key Priorities Growth in Fastest Innovation & Growing Leading in Price Management Cost Efficiency Brands Categories and Sustainability Channels +5.9% in Price +1% in Mix SEK 224m Inco Retail +15% Q3 initiatives: Strong price effect this Growth in high margin generated from cost savings F
Slide 17: Value Creating Innovations for Customers and Consumers
Value Creating Innovations for Customers and Consumers INCONTINENCE PRODUCTS MEDICAL SOLUTIONS CONSUMER TISSUE HEALTH CARE JOBST UltraSheer and TENA SmartCare Identifi™ JOBST Opaque Actimove® Sports Edition Tempo Plenty® Everyday Sensor Wear Flex JOBST® Confidence Plus Sizes Natural Skin Balance Int
Slide 18: Committed to Net Zero Emissions by 2050
Committed to Net Zero Emissions by 2050 Science Based Targets -35% By 2030 vs 2016 Scope 1 and 2 Text Suameer, Netherlands
Slide 19: Committed to Net Zero Emissions by 2050
Committed to Net Zero Emissions by 2050 Science Based Targets -18% 2022 vs 2016 Scope 1 and 2 Text Hondouville, France
Slide 20: Clear Long-term Financial Targets and Capital Allocation Priorities
Clear Long-term Financial Targets and Capital Allocation Priorities Maintain Annual sales growth1) Capital structure solid Average sales growth >5% Baa1 long-term rating from investment +6.6% 2015-9M 2023 Moody’s and BBB+ from S&P grade rating Adjusted return on capital employed2) Dividend Long-term
Slide 21: Back To Strong Sales and Profit Trajectory
Back To Strong Sales and Profit Trajectory Net Sales Adjusted EBITA1) 156.2 17.6 SEKbn SEKbn 15.8 129.0 118.5 121.8 121.9 13.4 13.7 12.9 13.1 109.3 Q3 2023 12.0 Q3 2023 98.5 101.2 10.6 88.0 9.5 Q2 2023 Q2 2023 Q1 2023 Q1 2023 2014 2015 2016 2017 2018 2019 2020 2021 2022 9M 2023 2023 2014 2015 2016 2
Slide 22: Roadmap to Adjusted ROCE >17%
Roadmap to Adjusted ROCE >17% >17% Commercial Excellence Innovation & brand building 14.6% New Growth Sustainable solutions 13.2% Initiatives 12.7% Market share gains Structural Price management 11.4% Efficiencies Profitable growth Commercial Excellence Structural Efficiencies 8.4% Efficiency Servi
Slide 23: Interim Report Q3 2023 October 26, 2023
Interim Report Q3 2023 October 26, 2023 23
Slide 24: Q&A
Q&A Text
Slide 25: Slide 25