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Despite Positive Sales, Higher Raw Material Costs Are Likely To Weigh On Essity: Analyst

By Steve Wynne-Jones
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Paper products giant Essity has reported an 8.6% increase in net sales in the first half of its financial year, however a leading industry analyst says that higher raw material costs are likely to weigh on the group going forward.

Adjusted EBITDA was up 7% to SEK 6.92 billion (€660 million), while adjusted EBITDA margin was 11.0% in the period.

The group's biggest segment, Consumer Tissue, saw a 10% increase in net sales to SEK 24.4 billion (€2.32 billion) in the first half, while its Personal Care business was up 7% to SEK 23.7 billion (€2.25 billion).

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