Essity (ESSITY) 23rd annual dbAccess Global Consumer Conference summary

Strategic review and organizational changes

• Leadership reassessed strategy, confirming strengths in brands, innovation, and financial flexibility.

• Shift to a decentralized structure with four business units, enhancing accountability and speed.

• Strategic review of Consumer Tissue aims to unlock value by focusing on higher-yield, value-added segments.

• Portfolio optimization and cost-saving program targeting SEK 1 billion in savings by year-end, with reinvestment into growth.

• M&A remains disciplined, focused on scale, channel expansion, and strategic fit, especially in North America and D&E markets.

Business unit performance and market dynamics

• Consumer Tissue under review due to differing fundamentals; price increases to offset commodity cost rises.

• Professional Hygiene improved margins through mix shift and exiting low-margin segments, with growth focus on strategic systems and D&E markets.

• Health & Medical sees largest opportunities in wound care and incontinence care, with sustainable high margins in wound care.

• Personal Care benefits from focused innovation and increased A&P investment, with channel shift to retail not impacting margins.

• Competitive environment remains stable, with no major shifts from new entrants in Asia or emerging markets.

Financial outlook and resilience

• Price increases expected across divisions, varying by category and market.

• Cost savings to be reinvested in growth, indirectly supporting margin improvement through volume leverage.

• Operational flexibility, local supply chains, and essential product offerings support resilience amid depressed consumer demand.

• Focus remains on capturing growth in premium and value segments, ready to respond as market conditions evolve.