Essity reported mixed Q2 21 numbers. Sales were up 9.5% on an organic basis, driven by a 26.1% rise in Professional Hygiene sales and 12.7% increase in personal care. As expected, the adjusted EBITA margin contracted 1.5pp to 11.8%, hurt largely by the steep increase in raw material and energy costs.
We will reduce our estimates, given the challenging raw material headwinds, which should lead to higher margin pressures in spite of the strong top-line recovery in the pandemic-hit segments.
16 Jul 2021
Q2 21: steep margin headwinds
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Q2 21: steep margin headwinds
Essity AB Class B (ESSITY.B:OME) | 0 0 0.0%
- Published:
16 Jul 2021 -
Author:
Virendra Chauhan -
Pages:
4
Essity reported mixed Q2 21 numbers. Sales were up 9.5% on an organic basis, driven by a 26.1% rise in Professional Hygiene sales and 12.7% increase in personal care. As expected, the adjusted EBITA margin contracted 1.5pp to 11.8%, hurt largely by the steep increase in raw material and energy costs.
We will reduce our estimates, given the challenging raw material headwinds, which should lead to higher margin pressures in spite of the strong top-line recovery in the pandemic-hit segments.