Essity Aktiebolag (STO: ESSITYB) on Thursday reported its full-year 2025 financial results, highlighting a period of increased profitability and market share gains despite a decline in reported net sales. The Swedish hygiene and health company achieved an EBITA margin of 14.1% for the year, supported by cost-saving initiatives and pricing discipline. The Board of Directors proposed a 6% increase in the dividend to SEK 8.75 per share.
Quarterly Financials
For the fourth quarter ending December 31, 2025, net sales decreased 8.2% to SEK 34,695 million, compared to SEK 37,805 million in the prior-year period. Organic sales growth for the quarter was -1.1%, driven by a 0.2% decline in volume and a 0.9% decrease from price/mix adjustments.
However, profitability improved during the final quarter. Adjusted EBITA (excluding items affecting comparability) rose 3% to SEK 5,117 million. The adjusted EBITA margin expanded by 1.6 percentage points to 14.7%. Profit for the period for total operations increased to SEK 3,224 million, with earnings per share rising to SEK 4.69.
On a full-year basis, Essity’s net sales reached SEK 138,494 million, a 4.8% decrease from 2024. This decline was primarily attributed to adverse currency translation effects; excluding these, net sales increased by SEK 1,354 million. Full-year organic sales growth remained positive at 0.9%.
| Metric (Full Year 2025) | Value | Year-on-Year Change |
| Net Sales | SEK 138,494m | -4.8% |
| Organic Sales Growth | 0.9% | +0.2 pts |
| Adjusted EBITA | SEK 19,572m | -4.0% |
| Adjusted EBITA Margin | 14.1% | +0.1 pts |
| Earnings Per Share | SEK 18.37 | -38.4%* |
*> Note: The year-on-year EPS decline reflects significant non-recurring gains in 2024 related to the divestment of Vinda.
M&A Update
In November 2025, Essity announced an agreement to acquire Edgewell Personal Care’s feminine care business in North America for USD 340 million (approximately SEK 3.2 billion). The transaction includes the Carefree, Stayfree, and o.b. brands in North America and the Playtex brand globally. The acquisition is expected to close in the first quarter of 2026 and aligns with Essity’s strategy to expand in high-margin categories within the U.S. market.
Product Launches
The company reported that product superiority reached over 70% across its portfolio in 2025. Key launches included:
- TENA ProSkin Stretch Day & Night: A specialized incontinence product designed to reduce care costs for healthcare providers.
- Tork PeakServe: New dispensing systems aimed at high-traffic professional hygiene environments.
- Lotus Just 1: Expansion of coreless toilet paper technology in the French market to reduce waste and carbon emissions.
Market Risk Analysis and Outlook
Essity faces ongoing risks from volatile raw material prices and currency fluctuations, particularly the strengthening of the Swedish krona against the U.S. dollar, which impacted 2025 reported revenue.
To mitigate these risks and accelerate growth, the company launched a SEK 1 billion cost-savings program in late 2025, targeting sales and administration expenses. Effective January 1, 2026, Essity transitioned to a new organizational structure with four divisions to increase operational agility. S&P Global recently revised Essity’s outlook to “Positive,” citing resilient operating performance and low leverage (1.5x debt to EBITDA) heading into 2026.