Half Year 2024 Essity AB (publ) Earnings Call Transcript
Key Points
- Essity AB (ETTYF) achieved its highest EBITDA operating result to date, with a 17% increase, reaching SEK 3.4 billion.
- The company announced a share buyback program amounting to SEK 3 billion, indicating strong operating cash flow.
- Health and Medical segment showed strong development with organic sales growth of 4.5%, driven by both volume and price/mix improvements.
- Consumer goods segment saw higher volumes in all categories, with incontinence products retail increasing by 9.7%.
- Professional Hygiene segment reported higher EBITDA margin and positive volume growth excluding restructuring impacts.
- Organic sales growth was slightly down by 0.9%, indicating some challenges in maintaining sales momentum.
- Consumer Tissue experienced a negative price mix of 4.5%, impacting overall organic sales growth in the consumer goods segment.
- The company faces a subdued consumer environment with down-trading and a focus on savings, which could impact future sales.
- Raw material costs, particularly pulp, are expected to increase, potentially putting pressure on margins in the coming quarters.
- Professional Hygiene segment's organic sales growth was down by 3.9%, with volumes negatively impacted by restructuring.
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Yes, good morning and very welcome to Essity audio presentation of second quarter 2024 results. My name is Sandra Aberg, Head of Investor Relations. And Joining today are CEO, Magnus Groth, and our CFO, Fredrik Rystedt. Magnus and Fredrik will take us through the results after that, you are very welcome with your questions.
Now I leave the line over to you, Magnus, please.
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Thank you, Sandra, and welcome, everyone, to our Q2 interim report 2024 and assets summary, equity had a strong performance in the second quarter with high underlying volume growth, our highest EBITDA operating result to date with higher margins in all three business areas. We continued to show solid cash flow. And not to forget that during the quarter we announced a share buyback program and new ambitious financial targets.
So summing up the
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