Essity: Post the call: Q326 ‘significantly higher’ COGS risks H2 adj. EBITA margin

研报英文原文证据摘录

Essity: Post the call: Q326 ‘significantly higher’ COGS risks H2 adj. EBITA margin

J P M O R G A N Europe Equity Research

16 July 2026

Essity Underweight

ESSITYB.ST, ESSITYB SS

Post the call: Q326 ‘significantly higher’ COGS risks H2 Price (15 Jul 26):Skr278.90

adj. EBITA margin Price Target (Dec-27):Skr215.00

Essity presented its conference call post Q226 results. Our key takeaways from the European Food Producers,

call are: 1) Q3 was guided to see “significantly higher” COGS, driven by oil-based Household & Personal Care

materials and energy, as well as sequentially higher pulp costs; 2) SG&A was Products, Beverages & Tobacco

indicated to be higher y/y in Q326, as the effect of the comp base, IT spend, higher Celine Pannuti, CFA AC

A&P and inflation should offset savings; 3) The company noted that negative (44-20) 7134-7123

pricing in Q2 (-1.3% pure pricing effect in the quarter) was driven by the spillover celine.pannuti@jpmorgan.com

effects from 2025 in Consumer Tissue, Baby Care and Professional Hygiene. Some Edward G Hockin

price increases have been taken, not yet visible in the P&L, and further increases (44-20) 7742-6937

edward.hockin@jpmorgan.com

would come, but was not specific on the magnitude of the increases; and 4) On J.P. Morgan Securities plc

volumes, the company noted a good Q2 development in feminine and incontinence

retail, health and medical and professional. However, they “cannot rule out” some Specialist Sales contact details:

pre-buying in Health & Medical (in incontinence care) in the quarter. Looking Olivia Petronilho - Specialist Sales -

ahead, the company noted it would be surgical on price increases with an ambition European Consumer

to continue to drive volume growth. Net-net, while Q2 adj. EBITA benefitted from (44-20) 3493-3709