Essity reported a fourth-quarter EBITA margin of 14.7%, up from 13.1% a year earlier, as pricing discipline and cost savings countered an 8.2% drop in net sales to SEK 34.7 billion. The Swedish hygiene products maker credited raw material and energy cost reductions for a 190 million SEK improvement in gross margin.

Despite stable volumes, organic sales dipped 1.1%, weighed down by price adjustments. Still, the company gained market share across more than 65% of its branded retail sales, driven by product launches and targeted marketing. Full-year 2025 organic sales grew 0.9%, while net sales fell 4.8% to SEK 138.49 billion.

Looking ahead, Essity finalized its acquisition of Edgewell’s feminine care business, including brands like Carefree and Playtex, set to close in early 2026. The company also proposed a 6% dividend increase and returned SEK 555 million to shareholders through its buyback program. Cash flow surged 33% to SEK 4.37 billion.