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Hygiene product maker Essity's Q1 profit beats expectations
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Hygiene product maker Essity's Q1 profit beats expectations
Apr 25, 2024 1:08 AM

April 25 (Reuters) - Sweden's Essity

reported first-quarter core earnings above expectations on

Thursday as the hygiene product maker continued to focus on

boosting its volumes and market share.

Its adjusted quarterly earnings before interest, tax and

amortisation (EBITA) rose 12% from a year earlier to 4.9 billion

Swedish crowns ($450.86 million), surpassing the 4.45 billion

crowns expected by analysts polled by LSEG.

"Our focus as we move forward remains on growing volume and

gaining market share with good profitability," Chief Executive

Magnus Groth said in a statement.

Shares in the company rose 3.4% at market open, paring some

gains to trade 1.25% higher at 0721 GMT in a largely unchanged

market.

JP Morgan said the higher than expected EBITA was positive,

but said pricing woes affecting consumer goods makers, amid

rising costs and weaker consumer spending, could weigh on the

company's outlook.

"Pricing in consumer goods should be a worry at a time of

potential rebound in costs," the broker said.

Adjusted EBITA margin rose to 14.0%, marking its sixth

consecutive quarterly margin increase, Essity said, as it

reported higher margins for all business areas.

Essity has been growing its margins over the past year

at the expense of falling volumes, a trend it has said it is

starting to reverse as it intensifies sales and marketing

activities.

Excluding restructuring and exited contracts, volumes

increased 0.6% in the quarter.

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