ESSITY AKTIEBOLAG ORD - ETTYF STOCK NEWS

Essity, in collaboration with McDonald's, is launching a recycling project in Germany to convert used paper cups into Tork branded toilet paper. Initiated in 2020, the project aims to recycle approximately 1,200 tons of waste annually. This collaboration will not only reduce McDonald's waste and carbon footprint but also align with Essity's sustainability goals. The solution extends Essity's Tork PaperCircle® service, enhancing its circular economy initiatives.

Essity reported a net sales decline of 18.3% to SEK 27,528m for Q1 2021, primarily due to the COVID-19 pandemic and stockpiling effects from the previous year. Organic net sales fell 9.9%, with e-commerce increasing 14%. Operating profit (EBITA) dropped 31% to SEK 3,664m. Despite challenges, market shares rose in several sectors, and the company announced acquisitions to boost growth, including a USD 1,540m deal for control of Productos Familia S.A.. Future price increases are planned to counteract higher raw material costs.

Essity, a hygiene and health company, announced price increases in Consumer Tissue products due to rising raw material costs. The hikes are expected to average in the mid-to-high single digits in key markets. Additionally, the company is preparing for price adjustments in other product categories affected by similar cost pressures. This announcement is in compliance with the EU Market Abuse Regulation, signaling a proactive response to inflationary trends impacting production costs.

Essity has announced price increases in its Consumer Tissue category due to rising raw material costs, effective in key markets. The average increase is in the mid-to-high single digits. Additionally, the company is planning price hikes in other product categories affected by these costs. This decision aligns with their commitment to maintaining profitability amidst challenging market conditions.

Essity has acquired the distribution rights to Sorbact® wound care technology in Australia and New Zealand from Bayport Brands. In 2020, Sorbact® sales in this region reached AUD 1.7 million (approx. SEK 11 million). This acquisition is part of Essity's strategy to enhance its presence in the advanced wound care market, where it has shown promising sales growth. Sorbact® is known for its innovative approach in wound treatment, effectively binding bacteria and fungi while being non-toxic. Essity acquired 75% of Abigo Medical, the manufacturer of Sorbact®, in February 2020.

Essity held its Annual General Meeting on March 25, 2021, where key financial statements for 2020 were approved. A dividend of SEK 6.75 per share was announced, with a record date of March 29, 2021, and payment scheduled for April 1, 2021. The Meeting also confirmed director remuneration and re-elected board members, including Chairman Pär Boman. Ernst & Young AB was appointed as auditor until the 2022 AGM. The Board was authorized to buy back shares, and changes to the Articles of Association were approved. Meeting minutes will be published on Essity's website within two weeks.

Essity will release its interim report for the first quarter of 2021 on April 23 at 7:00 CET. A telephone and web presentation will follow at 9:00 CET, led by President and CEO Magnus Groth, who will present key findings and answer questions. Investors and media can participate via telephone at multiple numbers provided, or view the presentation online using the linked web address. For further questions, media relations can be contacted.

Essity has launched the Libresse® V-Cup, a reusable menstrual cup, in the Nordic countries: Denmark, Finland, Norway, and Sweden. This product expansion reflects Essity's commitment to sustainability within its feminine care range. The Libresse® V-Cup, made of 100% soft medical-grade silicone, can be worn for up to 12 hours, providing a sustainable alternative to traditional feminine hygiene products. The launch follows a similar introduction in Latin America and aims to meet the growing consumer demand for eco-friendly options.