Tissue maker Essity to raise prices again after narrow profit beat
Reuters
Published Jul 21, 2022 01:09AM ET
Updated Jul 21, 2022 01:31AM ET
STOCKHOLM (Reuters) -Hygiene products group Essity said on Thursday it planned to further hike prices in the face of higher costs, after posting second-quarter profits slightly above market forecasts.
Climbing raw material and energy costs weighed on earnings, but higher volumes and selling prices lifted margins at the group, which sells consumer tissue such as toilet paper and napkins under a large number of brands including Lotus, Tempo and Vinda.
Adjusted earnings before interest, tax and amortisation (EBITA) at the world's second-biggest maker of consumer tissue fell to 3.16 billion Swedish crowns ($309.8 million) from 3.41 billion a year earlier, compared to mean expectations of 3.02 billion, according to Refinitiv data.
"Further price increases will be carried out in the second half of 2022," Chief Executive Officer Magnus Groth said in a statement.
Essity, a rival of Procter & Gamble (NYSE:PG) and Kimberly-Clark (NYSE:KMB), said organic, or like-for-like, sales growth in the quarter was 17.8%.
($1 = 10.2014 Swedish crowns)
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Written By: Reuters
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