Slide 1: Interim Report Quarter 2, 2024
Interim Report Quarter 2, 2024 Magnus Groth President and CEO Fredrik Rystedt CFO and EVP
Slide 2: Interim Report Quarter 2, 2024
Interim Report Quarter 2, 2024 Magnus Groth President and CEO
Slide 3: Essity in Better Shape than Ever
Essity in Better Shape than Ever Strong Q2 Performance High underlying volume growth Highest EBITA to date with higher margins Text in all business areas Solid cash flow Share buyback program and new financial targets launched
Slide 4: Financial Summary
Financial Summary Q2 2024 vs Q2 2023 Earnings per Share Growth Organic Sales Growth EBITA excl IAC +37% +4.6% SEK SEK 4.72 -0.9% Organic: 5,398m +3.8% +17% SEK 3.46 EBITA Margin excl IAC ROCE excl IAC 14.7% 18.5% +220bps +270bps Q2 2023 Q2 2024 Interim Report – Quarter 2, 2024
Slide 5: Quarterly Development Sales and Profits
Quarterly Development Sales and Profits Sales and Organic Sales Growth 7000 EBITA and EBITA margin 16% 39000 6500 14.7% 37,078 37,092 13.9% 14.0% 14% 37000 36,629 36,352 36,625 36,617 6000 13.3% 5500 12.5% 5,398 34,850 35000 34,226 11.8% 5,147 12% 5000 11.2% 4,853 4,880 4,617 33000 4500 4,281 10% 4,
Slide 6: New Financial Targets – Higher Ambitions
New Financial Targets – Higher Ambitions Annual Organic EBITA Margin Sales Growth >3% excl. IAC >15% Text
Slide 7: Share Buyback Program
Share Buyback Program Allocation of Strong Operating Cash Flow Essity B share buyback program of SEK 3bn SEK Begins June 17, 2024 and extends until AGM 2025 Safe Harbour compliant 3bn Accumulated volume of 486 000 shares and transaction value of SEK 134m as per June 30 Ambition to use as a r
Slide 8: Health & Medical
Health & Medical – Strong development of volumes, EBITA and margin Organic sales growth +4.5% ─ Strong volumes +3.2%, +4.4% excluding exits ─ Higher prices and better mix +1.3% ─ Incontinence Products Health Care +3.8% ─ Medical Solutions +5.5% Sharp improvement of EBITA and EBITA margin1) ─ EBI
Slide 9: Consumer Goods
Consumer Goods – Higher volumes in all categories, higher EBITA and margin Organic sales growth -1.3% ─ Higher volumes in all categories +3.2% ─ Price/Mix -4.5% ─ Incontinence Products Retail +9.7% ─ Feminine Care +1.2% ─ Baby Care +0.5% ─ Consumer Tissue -4.7% Higher EBITA and EBITA margin1) ─
Slide 10: Consumer Goods – Leading Positions with Increasing Market Shares
Consumer Goods – Leading Positions with Increasing Market Shares #1 or #2 Position Increasing Shares Increasing or Stable 90% Text 48% 70% % of Branded Sales Market share development for last 3 months vs Moving Annual Total (12 months rolling)
Slide 11: Professional Hygiene
Professional Hygiene – Good underlying volume growth, higher EBITA and margin Organic sales growth -3.9% ─ Price/mix +3.0% ─ Volumes -6.9%, +1.4% excluding restructuring Higher EBITA and EBITA margin1) ─ EBITA +18% ─ EBITA margin 19.2%, +360bps Tork continues to build on its unique compression t
Slide 12: Interim Report Quarter 2, 2024
Interim Report Quarter 2, 2024 Fredrik Rystedt CFO and EVP
Slide 13: Strong Underlying Volume Growth and Positive Mix
Strong Underlying Volume Growth and Positive Mix +2.9% -1.3% -2.5% 37,078 Price/Mix 36,617 Volume underlying Restructuring and exits 36,617 Net Sales Reported Growth: -1.2% Net Sales Q2 2023 incl Divestments -1.6% Q2 2024 (SEKm) Currency +1.3% (SEKm) Interim Report – Quarter 2, 2024 13
Slide 14: Higher EBITA Margin excl. IAC
Higher EBITA Margin excl. IAC +400bps -70bps -110bps 14.7% 12.5% • Good price discipline with increased gap between sales prices and COGS • Higher volumes • Positive mix +220 bps Q2 2023 Impact Gross A&P SG&A Q2 2024 Profit Margin (excl. A&P) Interim Report – Quarter 2, 2024 14
Slide 15: Continued High Cash Flow Generation
Continued High Cash Flow Generation Operating Cash flow 6,054 5,914 4,253 3,239 SEKm 2,849 2,870 2,847 2,621 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Interim Report – Quarter 2, 2024 15
Slide 16: Strengthened Balance Sheet
Strengthened Balance Sheet 70 5 62.9 4.5 60 54.4 55.4 52.5 50.9 50.0 4 50 3.5 42.7 3 40 3.0 3.1 33.2 2.8 2.5 30 50.4 50.9 2.8 2.342.7 2 34.3 20 2.0 1.5 1.8 1 10 1.3 0.5 0 0 2017 2018 2019 2020 2021 2022 2023 H1 2024 Net Debt, SEKbn Net Debt / EBITDA excl IAC 2023 Continuing operations Interim Report
Slide 17: Driving Increased Shareholder Value
Essity – Fit for Profitable Growth Driving Increased Shareholder Value Attractive and growing markets Leading brands and innovations Sustainability in focus and a winning corporate culture Strong financial position Interim Report – Quarter 2, 2024 17
Slide 18: Save the Date: Capital Markets Day
SAVE the DATE Capital Markets Day Text December 3, 2024 in Valls, Spain
Slide 19: 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 20: Q&A
Q&A Text
Slide 21: Essity
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