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Essity lags Q4 forecasts as higher costs offset volume and price growth

Essity, a Swedish hygiene products company, reported that its fourth-quarter core earnings fell short of expectations due to increased costs which offset the benefits from higher volumes and price increases. The company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were 4.73 billion Swedish crowns, below the anticipated 4.94 billion crowns. Despite these challenges, Essity saw a 5.8% rise in sales volumes and a 6.6% increase in prices, but these were not enough to counteract the impact of rising raw material and energy costs. Additionally, Essity announced plans to close a tissue plant in France, which will affect 170 jobs, as part of its strategy to manage costs. The company also noted that its adjusted return on capital employed (ROCE) was 10.1%, down from 11.3% the previous year.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/other/essity-lags-q4-forecasts-as-higher-costs-offset-volume-and-price-growth/ar-AA1xIdIc ]