Essity reported a strong set of Q1 2022 numbers. Sales rose 14.6% as the group executed price hikes while maintaining robust volume growth. In spite of the strong top-line development, margin compression continued through the quarter as input cost pressures intensified and were only partially offset by other measures, resulting in an EBITA margin decline of 490bps to 8.2%. We will be upgrading our estimates to factor in the strong Q1 showing.