Essity Aktiebolag B

  • TickerESSITY B
  • ISINSE0009922164
  • ExchangeNasdaq Nordic Stockholm
  • SectorPersonal Goods
  • CountrySweden
Benedicte Aass ... (+2)
  • Benedicte Aass
  • Martin Melbye
ESSITY B Essity Aktiebol... (Personal & Household Goods)

Essity - Wait for higher prices and volumes

EBITA 5% below cons. - higher raw material costs Price increases of ~12% could offset higher input costs Long-term outlook strong, valuation potential vs. peers

Benedicte Aass ... (+2)
  • Benedicte Aass
  • Martin Melbye
ESSITY B Essity Aktiebol... (Personal & Household Goods)

Essity - EBITA 5% below

Clean EBITDA was 5% below consensus 9.5% organic growth, margin of 11.8% Price increases for H2’21

Karl-Johan Bonnevier
  • Karl-Johan Bonnevier
ESSITY B Essity Aktiebol... (Personal & Household Goods)

Essity (Hold, TP: SEK300.00) - Awaiting further pricing initiatives

Essity’s Q2 did not meet expectations and, with pulp prices hitting new highs, it faces the continued challenge of raw materials headwinds, requiring further pricing initiatives to be fully balanced, which would take until Q2 2022. We have slightly cut to our 2021e EPS with the outlook for 2022–2023e largely unchanged. We still find Essity to be in neutral-to-negative absolute and relative valuation territory, and Consumer Staples have been underperforming the market. Thus, we retain our HOLD and SEK300 target price.

Karl-Johan Bonnevier
  • Karl-Johan Bonnevier
ESSITY B Essity Aktiebol... (Personal & Household Goods)

Essity (Hold, TP: SEK300.00) - Balancing the pulp price challenge

With pulp prices hitting new highs, Essity faces the continued challenge of raw material headwinds, requiring further pricing initiatives to be fully balanced, which is likely to take until H1 2022 in our view. Our Q2 forecasts are below consensus, while our revised EPS forecasts for 2021–2023 are more in line, still suggesting an historically good performance at a high level. We still find Essity to be in neutral absolute and relative valuation territory, and consumer staples underperforming the market, reiterating our HOLD and SEK300 target price.

ESSITY B Essity Aktiebol... (Personal & Household Goods)

Essity AB: 1 director

A director at Essity AB bought 1,500 shares at 288.750SEK and the significance rating of the trade was 54/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of board me...

ESSITY B Essity Aktiebol... (Personal & Household Goods)

Essity AB: 1 director

A director at Essity AB bought 1,500 shares at 288.750SEK and the significance rating of the trade was 54/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of board me...

Benedicte Aass ... (+2)
  • Benedicte Aass
  • Martin Melbye
ESSITY B Essity Aktiebol... (Personal & Household Goods)

Essity - Wait for higher prices and volumes

EBITA 5% below cons. - higher raw material costs Price increases of ~12% could offset higher input costs Long-term outlook strong, valuation potential vs. peers

Benedicte Aass ... (+2)
  • Benedicte Aass
  • Martin Melbye
ESSITY B Essity Aktiebol... (Personal & Household Goods)

Essity - EBITA 5% below

Clean EBITDA was 5% below consensus 9.5% organic growth, margin of 11.8% Price increases for H2’21

Karl-Johan Bonnevier
  • Karl-Johan Bonnevier
ESSITY B Essity Aktiebol... (Personal & Household Goods)

Essity (Hold, TP: SEK300.00) - Awaiting further pricing initiatives

Essity’s Q2 did not meet expectations and, with pulp prices hitting new highs, it faces the continued challenge of raw materials headwinds, requiring further pricing initiatives to be fully balanced, which would take until Q2 2022. We have slightly cut to our 2021e EPS with the outlook for 2022–2023e largely unchanged. We still find Essity to be in neutral-to-negative absolute and relative valuation territory, and Consumer Staples have been underperforming the market. Thus, we retain our HOLD and SEK300 target price.

Karl-Johan Bonnevier
  • Karl-Johan Bonnevier
ESSITY B Essity Aktiebol... (Personal & Household Goods)

Essity (Hold, TP: SEK300.00) - Balancing the pulp price challenge

With pulp prices hitting new highs, Essity faces the continued challenge of raw material headwinds, requiring further pricing initiatives to be fully balanced, which is likely to take until H1 2022 in our view. Our Q2 forecasts are below consensus, while our revised EPS forecasts for 2021–2023 are more in line, still suggesting an historically good performance at a high level. We still find Essity to be in neutral absolute and relative valuation territory, and consumer staples underperforming the market, reiterating our HOLD and SEK300 target price.

Martin Melbye ... (+2)
  • Martin Melbye
  • Benedicte Aass
ESSITY B Essity Aktiebol... (Personal & Household Goods)

Essity - Q2 likely to be weak

EBITA 8% below – higher raw material costs for Q2 Price increases of 7-10% could offset higher input costs Long-term outlook strong, valuation potential vs. peers

Expert Corporate Governance Service (ECGS)
  • Expert Corporate Governance Service (ECGS)
ESSITY B Essity Aktiebol... (Personal & Household Goods)

Essity - AGM 25 March 2021

We note that as a result of the Covid-19 pandemic the AGM will be held as an electronic meeting only. Consequently, it will not be possible to attend the AGM in person. Under ITEMS 11a-11i the nomination committee proposes the (re-)election of the board of directors. In view of concerns over aggregate time commitments we recommend to vote OPPOSE to the (re-)election of Mr. Pär Boman (ITEM 11b) and Ms. Annemarie Gardshol (ITEM 11c). Under ITEM 12 the nomination committee proposes to re-appoint Mr. Pär Boman as Chairman of the board of directors. In view of concerns over his aggregate time com...

Expert Corporate Governance Service (ECGS)
  • Expert Corporate Governance Service (ECGS)
ESSITY B Essity Aktiebol... (Personal & Household Goods)

Essity - EGM 28 October 2020

ECGS notes that as a result of the Covid-19 pandemic the AGM will be held as an electronic meeting only. Consequently, it will not be possible to attend the AGM in person. In general, Essity is in compliance with the Swedish regulations relating to the organization and procedures of the Extraordinary General Meeting. Under ITEM 6 the board of directors proposes to distribute an extraordinary dividend of SEK 6.25 per share. ECGS notes that the Company decided to refrain from dividend payments at the AGM 2020 in view of the Covid-19 pandemic. As such it is proposed to increase the aggregate di...

Expert Corporate Governance Service (ECGS)
  • Expert Corporate Governance Service (ECGS)
ESSITY B Essity Aktiebol... (Personal & Household Goods)

Essity -EGM 28 October 2020

ECGS notes that as a result of the Covid-19 pandemic the AGM will be held as an electronic meeting only. Consequently, it will not be possible to attend the AGM in person. In general, Essity is in compliance with the Swedish regulations relating to the organization and procedures of the Extraordinary General Meeting. Under ITEM 6 the board of directors proposes to distribute an extraordinary dividend of SEK 6.25 per share. ECGS notes that the Company decided to refrain from dividend payments at the AGM 2020 in view of the Covid-19 pandemic. As such it is proposed to increase the aggregate di...

Expert Corporate Governance Service (ECGS)
  • Expert Corporate Governance Service (ECGS)
ESSITY B Essity Aktiebol... (Personal & Household Goods)

Essity – AGM 02 April 2020

In general, Essity is in compliance with the Swedish regulations relating to the organisation and procedures of the AGM.   Under ITEMS 12.1-12.10, the (re-)election of the board of directors is proposed.   In view of concerns over aggregate time commitments as well as some other concerns, ECGS recommends to vote OPPOSE to the (re-)election of: Mr. Pär Boman (ITEM 12.2), Ms. Annemarie Gardshol (ITEM 12.4) and Mr. Bert Nordberg (ITEM 12.6).   Under ITEM 13 the nomination committee proposes to re-appoint Mr. Pär Boman as Chairman of the board of directors. ECGS has various concerns over his...

ESSITY B Essity Aktiebol... (Personal & Household Goods)

Essity April 04th, 2019

In general, Essity is in compliance with the Swedish regulations relating to the organisation and procedures of the AGM. Under ITEMS 12.1-12.9, the (re-)election of the board of directors is proposed.In light of concerns over aggregate time commitments, ECGS recommends to vote OPPOSE to the (re-)election of: Mr. Pär Boman (ITEM 12.2) and Ms. Annemarie Gardshol (ITEM 12.4). Under ITEM 13, the nomination committee proposes to re-appoint Mr. Pär Boman as Chairman of the board of directors. As already mentioned above, ECGS has various concerns over his re-appointment and therefore does not suppo...

ESSITY B Essity Aktiebol... (Personal & Household Goods)

ESSITY AB sees an upgrade to Positive due to a better fundamental star...

The general evaluation of ESSITY AB (SE), a company active in the Personal Products & Services industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as defensive. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Positive. As of the analysis date March 16, 2021, the closing price was SEK 273.70 and its potential was estimated at SEK 295.54.

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