Hygiene products firm Essity eyes vaccine effect after Q1 profit dives
Reuters
Published Apr 23, 2021 01:28
Updated Apr 23, 2021 02:06
STOCKHOLM (Reuters) -Hygiene products maker Essity reported a slightly bigger-than-expected drop in first-quarter operating profit on Friday, but said it expected COVID-19 vaccination programmes to boost demand for many of its products.
Operating earnings for the period fell 32% to 3.48 billion crowns ($413.3 million) on an organic sales drop of 10%, following restrictions and lockdowns to slow the COVID-19 pandemic. Analysts had expected a profit of 3.64 billion crowns, according to Refinitiv IBES data.
"Improved market conditions resulting from the ongoing vaccination programmes are expected to result in increased demand for several of Essity's product categories," the Swedish company said.
Significantly higher sales in China in the first quarter, and an increase in demand in North America at its professional hygiene division pointed to that, according to Essity.
The company said it expects a previously announced restructuring programme to "contribute to Essity's total annual cost savings of 500 million to 1 billion crowns through the optimization of the production structure, productivity improvements and raw material and energy savings".
($1 = 8.4211 Swedish crowns)
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.