Slide 1: Report for quarter 4 and full-year 2024
Report for quarter 4 and full-year 2024 January 23, 2025
Slide 2: Magnus Groth, President and CEO
Magnus Groth President and CEO Every day our brands care for the hygiene and health of a billion people across 150 countries
Slide 3: Essity – A leading hygiene and health company
Essity – A leading hygiene and health company 146 Net sales 2024 SEKbn 20.3 EBITA excl. IAC 2024 SEKbn 150 Sales in countries 36,000 Employees
Slide 4: Key achievements 2024
Key achievements 2024 In better shape than ever • Highest profits ever and good volume growth in high yielding segments • Strong cash flow generation and solid balance sheet • Divestment of Vinda resulting in a more attractive portfolio • New financial targets and share buyback program • Impactful i
Slide 5: Financial summary 2024
Financial summary 2024 Net sales Organic sales growth Operating cash flow EPS excl IAC1) SEK +0.2% +4.6% SEK SEK 145,546m +1.8% Organic: 17,242m 19.29 -1% +3.8% excl. restructuring -3% +10% EBITA excl. IAC EBITA margin excl. IAC ROCE excl. IAC Proposed dividend2) SEK 14.0% SEK 17.6% 20,344m +120bps
Slide 6: High EPS growth
High EPS growth Alt 2 +57% CAGR +7% SEK 19.3 per share SEK 12.3 +10% vs per share 2023 20171) 20242) Earnings per share excl. IAC and amortization of acquisition-related intangible assets 1) Adjusted for US Tax reform 2017 2) Continuing operations
Slide 7: Dividend SEK 8.25 per share
Dividend Proposed Dividend 20241) Dividend, SEK per share 8.251) 7.75 7.25 7.00 6.75 6.25 5.75 SEK 8.25 per share +6.5% 2018 2019 2020 2021 2022 2023 2024 1) Board of Directors Proposal Report quarter 4 and full-year 2024 7
Slide 8: Strong long-term financial development
Strong long-term financial development Sales EBITA excl. IAC +80% +132% 20.3 147.1 145.5 18.9 SEKbn 131.3 14.7 109.6 13.9 102.0 102.2 101.5 94.5 12.3 11.8 88.0 88.0 10.9 11.5 12.0 81.0 9.8 8.8 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 20
Slide 9: Impactful innovations 2024
Impactful innovations 2024
Slide 10: Product superiority and leading market positions
Product superiority and leading market positions % of sales with superiority (product, brand, price) 64% 59% 56% 40% #1 or #2 Increasing position market shares 2024 90% >40% ~65% incl stable of branded sales of branded sales in retail 2017 2020 2023 2024
Slide 11: Good progress on sustainability
Good progress on sustainability Health & Safety Greenhouse gas emissions Target 2025 Target 2030 TRI1) Outcome 2024 SBT Scope 1 and 2 Outcome 2024 -75% -66% -35% -27% vs 2019 vs 2019 vs 2016 vs 2016 1) Total Recordable Injuries per 1 000 000 working hours (F+LTA+RWC+MTC)*1.000.000 / Total working ho
Slide 12: Q4 2024
Q4 2024
Slide 13: Summary Q4 2024
Summary Q4 2024 Strong organic sales growth Organic Sales Growth EBITA excl IAC • All business areas contributing and strong growth in high margin segments SEK +3.9% +4.6% • Higher volumes and sales prices, positive mix Organic: +4.9% 4,969m Higher profit but lower margin +3.8% excl. restructuring +
Slide 14: Three attractive business areas
Three attractive business areas Health & Medical Consumer Goods Professional Hygiene Holistic health and Personal and home Hygiene management medical solutions hygiene for all stages solutions for a broad along the continuum of care 20% of net sales of life Accelerate high-margin 54% of net sales se
Slide 15: Health & Medical
Health & Medical Q4 – Strong growth and higher profits Organic sales growth +5.6% • Higher volumes +4.9% • Higher prices and positive mix +0.7% • Incontinence Products Health Care +4.4% • Medical Solutions +7.2% Profitability • EBITA excl. IAC SEK 1,361m, +21% • EBITA margin excl. IAC 18.3%, +220bps
Slide 16: Consumer Goods
Consumer Goods Q4 – Strong growth but cost pressure Organic sales growth +4.5% • Higher volumes in all categories +4.3% • Price/Mix +0.2% • Incontinence Products Retail +11.2% • Feminine Care +3.4% • Baby Care -1.6% • Consumer Tissue +4.3% Profitability • EBITA excl. IAC SEK 2,245m, -13% • EBITA mar
Slide 17: Professional Hygiene
Professional Hygiene Q4 – Strong growth of premium products and higher profits Organic sales growth +1.4%, +5.1% excl. restructuring • Volumes -6.0% • Higher prices and positive mix +7.4% Profitability • EBITA excl. IAC SEK 1,817m, +19% • EBITA margin excl. IAC 18.3%, +260bps 17
Slide 18: Fredrik Rystedt, EVP and CFO
Fredrik Rystedt EVP and CFO Every day our brands care for the hygiene and health of a billion people across 150 countries
Slide 19: Strong organic sales growth Q4: +4.9%
Strong organic sales growth Q4: +4.9% excl. restructuring +1.0% +2.2% +1.7% Volume Price/Mix Excl Restructuring 19
Slide 20: EBITA margin excl. IAC
EBITA margin excl. IAC 13.3% -20bps 0bps 0bps 13.1% • Higher COGS • Higher sales prices • Higher volumes • Positive mix Q4 2023 Impact Gross A&P SG&A Q4 2024 Profit Margin (excl. A&P) Report quarter 4 and full-year 2024 20
Slide 21: Strong development of cash flow
Strong development of cash flow 17.7 17.2 15.6 16.0 11.1 12.4 SEKbn 9.9 11.4 11.0 11.0 9.2 7.7 7.7 5.7 2018 2019 2020 2021 2022 2023 2024 Free cash flow Operating cash flow Report quarter 4 and full-year 2024 21
Slide 22: Strengthened balance sheet
Strengthened balance sheet 70 5 62.9 4,5 60 54.4 55.4 53.7 SEKbn 52.5 50.9 4 50 3,5 42.7 3 40 3.0 3.1 2.8 30.8 2,5 30 50.4 50.9 2.8 2.342.7 2 20 2.0 1,5 1.8 1 10 1.2 0,5 0 0 2017 2018 2019 2020 2021 2022 2023 2024 Net Debt, SEKbn Net Debt / EBITDA excl. IAC Report quarter 4 and full-year 2024 22
Slide 23: Magnus Groth, President and CEO
Magnus Groth President and CEO Every day our brands care for the hygiene and health of a billion people across 150 countries
Slide 24: Summary 2024
Summary 2024 • High net sales of SEK 146bn and highest profit ever of SEK 20.3bn – margin of 14% • Strong cash flow generation and solid balance sheet • More attractive product portfolio, new financial targets and share buyback program • Health & Medical – strong growth, record high profits and marg
Slide 25: Priorities 2025
Priorities 2025 Accelerating profitable growth • Volume growth in high yielding segments • Grow positions in North America and Latin America • Innovation, brands and market shares gains • Operational efficiency and digitalization • Continued progress on ESG
Slide 26: 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 report for a better understanding of these risks and uncert
Slide 27: Q&A
Q&A
Slide 28: Essity – Accelerating profitable growth to drive increased shareholder value
Essity – Accelerating profitable growth to drive increased shareholder value Globally leading in attractive and growing hygiene and health markets Leading market positions based on strong brands and successful innovations Focus to increase sales in fastest growing and most profitable segments and ch
Slide 29: essity
essity