Essity announced a strong set of Q1 numbers. Sales were up 7.8%, organically, to SEK33.7bn, with back-loaded growth (19.7% in March). The volume-led growth (+5.9%) as well as continuing drop in input prices resulted in a 5.4pp EBITA margin expansion, which drove an 87% increase in net profit. However, we do not expect any significant changes in our estimates, as we believe the pull-forward effects should only have a phasing impact rather than driving a meaningful increase in overall sales.
....27 Apr 2020
Q1 20: COVID-19 distortions
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Q1 20: COVID-19 distortions
Essity AB Class A (ESSITY.A:OME) | 0 0 0.0%
- Published:
27 Apr 2020 -
Author:
Virendra Chauhan -
Pages:
3
Essity announced a strong set of Q1 numbers. Sales were up 7.8%, organically, to SEK33.7bn, with back-loaded growth (19.7% in March). The volume-led growth (+5.9%) as well as continuing drop in input prices resulted in a 5.4pp EBITA margin expansion, which drove an 87% increase in net profit. However, we do not expect any significant changes in our estimates, as we believe the pull-forward effects should only have a phasing impact rather than driving a meaningful increase in overall sales.
....