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.