Tissue maker Essity to lift costs once more after slender revenue beat

Essity merchandise are seen on show in Stockholm, Sweden Might 23, 2019. REUTERS/Anna Ringstrom

STOCKHOLM, July 21 (Reuters) – Hygiene merchandise group Essity (ESSITYa.ST) mentioned on Thursday it deliberate to additional hike costs within the face of upper prices, after posting second-quarter earnings barely above market forecasts.

Climbing uncooked materials and vitality prices weighed on earnings, however larger volumes and promoting costs lifted margins on the group, which sells shopper tissue resembling bathroom paper and napkins underneath a lot of manufacturers together with Lotus, Tempo and Vinda.

Adjusted earnings earlier than curiosity, tax and amortisation (EBITA) on the world’s second-biggest maker of shopper tissue fell to three.16 billion Swedish crowns ($309.8 million) from 3.41 billion a yr earlier, in comparison with imply expectations of three.02 billion, in accordance with Refinitiv knowledge.

“Additional worth will increase shall be carried out within the second half of 2022,” Chief Govt Officer Magnus Groth mentioned in a press release.

Essity, a rival of Procter & Gamble (PG.N) and Kimberly-Clark (KMB.N), mentioned natural, or like-for-like, gross sales progress within the quarter was 17.8%.

($1 = 10.2014 Swedish crowns)

Reporting by Helena Soderpalm; modifying by Niklas Pollard

Our Requirements: The Thomson Reuters Belief Ideas.