Essity’s street beating Q2 numbers were not good enough to impress, as cautious inflation and margin commentary sent the stock tumbling >5%.
Q2 sales were up 17.8% on an organic basis, as the volume growth (3.7%) was maintained in spite of steep price increases (14.1%). However, the adjusted EBITA margin contracted 350bp, hurt by continued input inflation.
We will raise our top-line estimates, but expect a slower trajectory for the margin recovery.
22 Jul 2022
Q2 21: the beat isn’t good enough...
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Q2 21: the beat isn’t good enough...
Essity AB Class B (ESSITY.B:OME) | 0 0 0.0%
- Published:
22 Jul 2022 -
Author:
Virendra Chauhan -
Pages:
3
Essity’s street beating Q2 numbers were not good enough to impress, as cautious inflation and margin commentary sent the stock tumbling >5%.
Q2 sales were up 17.8% on an organic basis, as the volume growth (3.7%) was maintained in spite of steep price increases (14.1%). However, the adjusted EBITA margin contracted 350bp, hurt by continued input inflation.
We will raise our top-line estimates, but expect a slower trajectory for the margin recovery.