Essity stock weighs margin pressure against Brazil growth move

Essity reported higher third-quarter sales but weaker profitability on Thursday, October 22, 2026, while expanding its feminine-care platform in Brazil. The Swedish hygiene and health company also said it was advancing efficiency measures and a strategic review of Consumer Tissue. The PR Newswire report was released on behalf of Essity.

Sales rose as margins narrowed

Net sales increased 4.1 percent year over year to SEK 36.060 billion from SEK 34.638 billion. The underlying development was softer: organic sales declined 0.3 percent, with volume down 0.1 percent and price and mix down 0.2 percent.

EBITA fell to SEK 3.636 billion from SEK 5.152 billion in the year-earlier quarter. Excluding items affecting comparability, EBITA declined to SEK 4.725 billion from SEK 5.056 billion, and the adjusted EBITA margin narrowed to 13.1 percent from 14.6 percent. Profit for the period fell to SEK 2.346 billion from SEK 3.358 billion, while earnings per share declined to SEK 3.47 from SEK 4.86.

Operating cash flow provided a counterpoint to the earnings pressure, rising to SEK 5.783 billion from SEK 5.324 billion. Essity said higher costs remained a central challenge, while price increases and efficiency improvements were intended to offset the pressure. The company said sales prices were higher in every business area than in the second quarter.

Brazil deal broadens feminine care

Essity entered an agreement to acquire Kenvue's feminine-care business in Brazil. The portfolio includes the Carefree, Sempre Livre and o.b. brands. Essity said the transaction would strengthen its position in feminine care in Latin America and build on the North American feminine-care acquisition completed earlier in 2026.

Completion is expected in the second quarter of 2027 and remains subject to regulatory approval. For investors, the transaction offers a growth avenue in an established category, but its contribution depends on closing and subsequent integration. The deal therefore adds strategic potential without removing the near-term focus on costs, pricing and organic demand.

Portfolio choices remain in focus

Essity said its strategic review of Consumer Tissue was proceeding according to plan. The company is assessing whether a separation or continued ownership within Essity offers the stronger route to long-term value creation. Management said the aim was to translate strong market positions into profitable growth while directing investment toward areas with greater expansion potential.

Essity stock traded at 26.31 euros on Lang & Schwarz at 10:03 CET on Friday, November 13, 2026.

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Investors can follow upcoming developments, including the Brazil transaction and the Consumer Tissue review, in More news and analyses on Essity stock.