Essity: Year-end Report 2023

Magnus Groth, President and CEO, Essity

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(compared with the corresponding period a year ago)

  • Net sales increased 12.1% to SEK 147,147m (131,320). Sales growth, including organic sales growth and acquisitions, amounted to 6.7%, of which volume accounted for -3.7%, price/mix for 9.5% and acquisitions for 0.9%.
  • Operating profit before amortization of acquisition-related intangible assets (EBITA) increased 68% to SEK 16,607m (9,876)
  • Adjusted EBITA increased 57% to SEK 18,898m (12,047) and the adjusted EBITA margin increased 3.6 percentage points to 12.8% (9.2)
  • Profit for the period continuing operations increased 84% to SEK 9,517m (5,165)
  • Earnings per share continuing operations increased to SEK 13.44 (7.28) and adjusted earnings per share  continuing operations increased 51% to SEK 17.56 (11.60)
  • Operating cash flow increased 130% to SEK 17,685m (7,680)
  • Return on capital employed increased to 14.4% (8.9) and the adjusted return on capital employed increased 5.5 percentage points to 16.4% (10.9)
  • Isola Castle Ltd, a company indirectly wholly owned by Asia Pacific Resources International Limited (APRIL), has announced that it will make a pre-conditional public offer to the shareholders of Vinda International Holdings Limited (Vinda) to acquire 100% of the shares in Vinda for a price per share of HKD 23.50. Essity supports the offer and has signed an irrevocable undertaking to accept the offer in respect of all of its 51.59% shareholding in Vinda.
  • The Board of Directors proposes an increase in the dividend of 7% to SEK 7.75 (7.25) per share


Highest profit ever and strong platform for growth

Essity reached a net sale in 2023 of SEK 147bn and adjusted EBITA of SEK 18.9bn, excluding Vinda. Having offset cost inflation through price increases and improved the structural profitability, we increased focus during the fourth quarter on volume growth and market shares. The company Isola Castle Ltd has announced that it will make a pre-conditional public offer for the shares in Vinda, entailing a shift for Essity toward a product portfolio with a higher margin and lower volatility.


Source: Essity


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