Essity's net sales decreased 1.2% in the Q2 2024 compared with the corresponding period a year ago and amounted to SEK 36,617 million, compared to SEK 37,078 million in the Q2 2023.
The gross margin increased by 4.6 percentage points to 32.8%. Gross margin excl. IAC increased 4.0 percentage points to 33.2%. The higher margin was primarily related to good price discipline combined with lower costs of goods sold. The cost savings amounted to approximately SEK 400 million ($37.7 million). Higher volumes also made a positive contribution. Lower sales prices and salary inflation had a negative impact.
EBITA increased 27% to SEK 5,237 million. Excl. IAC, EBITA increased 17% to SEK 5,398 million and the EBITA margin amounted to 14.7%. The improvement was mainly the result of the increased gross margin, while investments in sales and marketing were higher in order to drive growth. In addition, salary inflation increased costs. Marketing cost as a percent of net sales increased 0.7 percentage points to 5.4%.
Profit for the period, total operations, amounted to SEK 3,333 million. Profit for the period, continuing operations, was SEK 3,334 million.
Essity is a global, leading hygiene and health company.
