-Swedish hygiene products maker Essity reported second-quarter earnings below market expectations on Thursday, citing a weak economy and an uncertain environment. (Reporting by Vera Dvorakova; Editing
Essity's Quarterly Earnings Fall Short of Market Expectations
-Swedish hygiene products maker Essity reported second-quarter earnings below market expectations on Thursday, citing a weak economy and an uncertain environment.
Essity's adjusted operating profit before amortisation (EBITA) fell to 4.7 billion Swedish crowns ($482.9 million) from 5.2 billion a year earlier, missing the 4.86 billion crowns expected by analysts polled by LSEG.
The company's adjusted EBITA margin increased to 13.7% from 13.5% in the first quarter.
"The quarter was dominated by a weak economy and an uncertain external environment, yielding limited volume growth," CEO Ulrika Kolsrud said in the earnings report.
Essity raised its price/mix, a metric indicating the selling price of its products, by 1.7% in the second quarter compared to the same period a year earlier.
Higher sales prices offset the increased costs of goods sold, which was mainly driven by higher raw material and distribution costs, including trade tariffs, Essity said.
($1 = 9.7326 Swedish crowns)
(Reporting by Vera Dvorakova; Editing by Matt Scuffham)
