Essity Q4 Profit Rises Despite 1.1% Organic Sales Decline (ESSITYB.ST)

Essity reported fourth-quarter net profit rose to SEK 2.8 billion ($256 million) from SEK 2.3 billion a year earlier, beating analyst estimates as price increases and cost savings offset volume weakness. Organic sales declined 1.1% to SEK 38.5 billion, below the company's long-term target. The Swedish hygiene and health company said adjusted operating margin improved to 13.2% from 11.8% in the prior-year period, reflecting SEK 1.2 billion in cost reductions. The Professional Hygiene division posted the steepest organic sales drop at 3.5%, while Medical Solutions grew 2.1%. Essity forecast 2026 organic sales growth of 3-5% and announced plans for SEK 2 billion in additional cost cuts. The board proposed a dividend of SEK 7.50 per share, up 9.5% from 2024. Shares traded 3.2% higher at SEK 285.60 in Stockholm following the January 22 earnings release.