Home / News / Swedish firm Essity’s net sales soar 20.2% in H1 FY23

Swedish firm Essity's net sales soar 20.2% in H1 FY23

21 Jul '23

2 min read

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Swedish company Essity reported a 20.2 per cent surge in net sales to SEK 86,856 million in H1 FY23.
The company's EBITA increased by 101 per cent to SEK 8,660 million, and profits rose 139 per cent to SEK 5,254 million.
Adjusted EBITA increased 51 per cent to SEK 9,059 million in H1 FY23 and adjusted EPS increased 46 per cent to SEK 8.31.

Essity, a Sweden-based global health and hygiene company, has reported a net sales surge of 20.2 per cent in the first half (H1) of fiscal 2023 (FY23), climbing to Swedish krona (SEK) 86,856 million (approximately $8,385.58 million), compared to SEK 72,230 million in H1 FY22. This is partly attributable to sales growth, including organic sales growth and acquisitions, which amounted to 12.8 per cent.

Breakdown of this sales growth reveals that volume decreased by 3.1 per cent, but the price factor contributed to a 14.6 per cent increase. Acquisitions also added an additional 1.3 per cent to the overall sales growth.

The company's operating profit before amortisation of acquisition-related intangible assets (EBITA) saw an increase of 101 per cent in H1 FY23, rising to SEK 8,660 million, compared to SEK 4,313 million in H1 FY22. Moreover, adjusted EBITA also rose significantly by 51 per cent to SEK 9,059 million, up from SEK 5,984 million. This impressive performance further boosted the adjusted EBITA margin, which increased by 2.1 percentage points to 10.4 per cent, compared to the previous 8.3 per cent, Essity said in its 2023 half-year report.

Essity’s profit for H1 FY23 rose by 139 per cent to SEK 5,254 million, up from SEK 2,194 million. The earnings per share also saw a dramatic increase, reaching SEK 7.32, up from SEK 2.55. Adjusted earnings per share experienced a boost of 46 per cent, increasing to SEK 8.31 from SEK 5.69.

“Essity performed well in the second quarter with continued high sales growth and higher margins. We are following our plan to achieve our target of a return on capital employed of above 17 per cent by 2025. Essity has now completely exited the Russian market and the ongoing strategic review of ownership in Vinda and Consumer Tissue Private Label Europe is proceeding according to plan,” said Magnus Groth, president and CEO.

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