Essity reports third-quarter margin pressure while Essity B stock costs EUR 24.72

Published on 10/27/2026 at 15:07 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Essity generated SEK 5.78 billion in Q3 cash flow. Essity B stock costs EUR 24.72 on October 27, 2026, with adjusted margin at 13.1 percent.

Essity's margin pressure becomes clearer

Essity reported a third-quarter adjusted EBITA margin of 13.1 percent, down from 14.6 percent a year earlier.
Quarterly sales rose 4.1 percent to SEK 36.06 billion, while organic sales declined 0.3 percent.
Operating cash flow increased to SEK 5.78 billion, and Essity B stock was trading at EUR 24.72 on October 27, 2026.

Essity B, SE0009922164, Illustration mit AI erstellt.

Essity reported a third-quarter adjusted EBITA margin of 13.1 percent, down from 14.6 percent a year earlier, sharpening the contrast between resilient cash generation and rising cost pressure. The report, published on October 22, 2026, also showed that sales increased 4.1 percent to SEK 36.06 billion, while organic sales declined 0.3 percent, according to Essity.

Cash flow cushions the margin decline

The quarter's strongest counterweight was cash generation. Operating cash flow rose to SEK 5.78 billion from SEK 5.32 billion in the year-earlier quarter, while profit for the period fell to SEK 2.35 billion from SEK 3.36 billion. The split matters because cost savings and higher selling prices supported liquidity, but they did not prevent a 1.5 percentage-point decline in adjusted EBITA margin.

Essity said all business areas reported higher sales prices than in the second quarter. It also identified higher costs as a continuing challenge and said pricing, efficiency measures and portfolio development would remain central to its growth plans.

Brazil deal adds a strategic test

The company entered an agreement to acquire Kenvue's feminine care business in Brazil, including the Carefree, Sempre Livre and o.b. brands. Essity expects the transaction to close in the second quarter of 2027, subject to regulatory approval. The acquisition adds a growth initiative while management works to restore profitability.

Essity also continued its capital return program. Between October 19, 2026 and October 23, 2026, the company repurchased 226,401 Class B shares for SEK 62.50 million, according to Nasdaq Stockholm. That buyback activity was already visible in the latest relevant coverage, while the new conclusion is that cash flow strength has not removed the margin question.

Stock price and investor perspective

For investors, the next test is whether price increases and efficiency actions can offset cost inflation without weakening volumes. Essity's third-quarter report showed that Health and Medical and Personal Care performed well, while Consumer Tissue faced lower volumes and earlier price reductions.

Essity B stock was trading at EUR 24.72 at Lang & Schwarz on October 27, 2026 at 3:02 p.m. CET. The further course of trading is shown by the continuously updated real-time quote of Essity B stock.