Invitation to presentation of Essity’s interim report for quarter 1, 2026

Essity will publish its Q1 2026 interim report on April 23 at approximately 07:00 CET, with CEO Ulrika Kolsrud and CFO Fredrik Rystedt presenting at a live webcast and teleconference at 09:00 CET. A webcast link and conference-call dial-ins (UK, USA, SWE) are provided for live viewing and Q&A; no financial figures or guidance were included in this notice.

Analysis

Essity sits at the center of several second-order supply dynamics: pulp and energy cost moves transmit to margins with a 2–4 quarter lag, while European retail private-label mix shifts faster (within 1 quarter). A modest 5–10% move in fluff‑pulp prices typically swings gross margin by ~100–200 bps for peers in this sector; management commentary around pass‑through timing is therefore the highest‑value datapoint in the webcast.

Competitors and counterparties are affected unevenly: US incumbents (Kimberly‑Clark, Procter & Gamble) have more exposure to dollar‑denominated input contracts and different retail mixes, so cross‑regional relative performance can diverge by 10–20% across a 6–12 month window if European consumer staples pricing stays sticky. Suppliers of pulp and energy (Nordic mills, biomass utilities) are natural second‑order beneficiaries if Essity signals sustained pricing power.

Principal tail risks are upside pulp/energy inflation, rapid private‑label share gains in discount channels, and SEK/EUR swings that compress reported margins; each can flip the narrative inside 1–3 quarters. The near‑term catalyst set is binary: tone on pricing cadence and inventory trends in the management Q&A will move implied vol and direction. Use a tight timebox (days around the release) for volatility trades and a 3–12 month horizon for directional relative‑value positions tied to input cost normalization.

Key Decisions for Investors

• Tactical volatility trade (0–2 weeks): buy a 2–3 week straddle on ESSITY‑B.ST into/through the webcast to capture a likely IV pop; cap risk to premium paid, target >1.5x premium on a ~5–8% move, otherwise close on print and re‑assess.
• Directional pair (3–6 months): long ESSITY‑B.ST (size 2–3% NAV) / short KMB (size to be delta‑neutral) — thesis: faster European price pass‑through and favorable retail mix. Set stop‑loss at 8% adverse move in net position and take‑profit at 20% net upside.
• Options hedge (3–6 months): if long shares, buy 6m 7–10% OTM puts to cap downside from a pulp/energy shock; cost should be tolerable relative to a potential 15–25% drawdown in a worst‑case input‑shock scenario.
• Event‑driven short (1–3 months): if management signals continued lagged pass‑through or increasing private‑label pressure, initiate a short position in ESSITY‑B.ST sized to limit portfolio exposure to 3% NAV, target 15% downside, use a 10% stop to limit regime‑shift risk.