About Ulrika Kolsrud
Ulrika Kolsrud, President and CEO of Essity, reported the company’s second quarter 2026 results, highlighting positive organic sales growth driven by volume increases in three of four business units: health and medical, personal care, and professional hygiene. She noted that consumer tissue experienced lower sales. Kolsrud stated that profitability margins remained healthy but were slightly negatively impacted by geopolitical factors causing increased cost inflation. She said the company has implemented some price increases and agreed on others that will appear in the third quarter, adding that compensating for cost increases is a top priority and that Essity has a strong track record of doing so over time.
Kolsrud discussed several strategic initiatives, including a reorganization into four business areas with end-to-end accountability, a cost-saving program, and a sharpened innovation agenda. She also mentioned an acquisition in feminine care in North America and a strategic review of the consumer tissue business. Regarding the review, Kolsrud said the company is examining all options—divestiture, separation, or retention—and that the goal is to create the best conditions for both the consumer tissue business and the rest of Essity to develop to their full potential and maximize value creation. She cited the UK’s NHS introducing value-based procurement guidance for medical technology as a positive development for Essity’s holistic solutions.
Source: AI-verified profile updated from Ulrika Kolsrud's recent appearances.
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Transcript (14 segments)
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Interviewer0:00
You have delivered in the second quarter, and one can note that you manage to defend and strengthen your margin. It lands at 13.4 percent. Why this relatively strong margin that actually exceeds market expectations?
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Ulrika Kolsrud0:22
Yes, that's correct. We had good profitability, even though the geopolitical situation led to increased cost inflation. There are several reasons. Firstly, we have a very resilient business with a diversified portfolio and the nature of our categories, which are needed in all economic cycles. We also had volume growth in the quarter, so our growth was driven by higher volumes and an improved product mix, which also positively affects the margin. And the cost-saving programs we are running, both in terms of administrative costs and input goods, have delivered according to plan. But volume growth is important because it drives economies of scale and has a positive impact. We had good growth in Health & Medical, Personal Care, and Professional Hygiene.
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Interviewer1:23
The costs and uncertainty about costs have been a common thread among several reporting companies this week. Are these costs for raw materials, input goods, energy, etc. that you simply pass on to customers? How resilient are customers to price increases?
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Ulrika Kolsrud1:50
Our prices always need to reflect our cost picture. We work very actively, but also selectively, with how we work with our prices based on different categories that have different cost exposure. Then it takes different amounts of time in different categories for us to change our prices. But what is important for us is to be as agile as possible. Back to the point about having a resilient profit margin.
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Interviewer2:21
So the price mix effect is negative, 1.1 percent. It is hopefully temporary, something that needs to be worked out before it can be done? That is not something we should get used to?
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Ulrika Kolsrud2:33
That is not something you should get used to. It is an effect partly of our selective price adjustments for Professional Hygiene to drive volume growth, which has also worked out very well. If you look at the tissue results there, we have both volume growth and have been able to maintain our margins, even strengthen our margins. So that is one effect. The other effect is on consumer tissue, where in previous quarters, if we go back to 2025, we have been working on adjusting prices downward to adapt to what were then lower costs for input goods, which now also impact this quarter.
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Interviewer3:15
Now we have had increased prices on oil and gas, which are quite important for you. How confident are you that you will be able to compensate for these higher raw material costs going forward? Because it is not yet visible in this quarter.
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Ulrika Kolsrud3:30
We have a very good track record of compensating for cost increases. Looking back in history, we have always succeeded with that over time. Then it takes different amounts of time in different categories and different segments.
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Interviewer3:49
If it takes too long, it becomes tough for the result. This time you are faster now, because it is hinted in your CEO message that you have become more agile, moved decision-makers out to more... So can we expect a faster reaction this time from your side?
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Ulrika Kolsrud4:06
That's correct. Partly, during the pandemic, we took many measures that made us more agile and faster in adjusting prices. But then it is also exactly as you say, the reorganization we are implementing creates greater overall responsibility for the businesses, and we become faster to decisions and faster to execution.
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Interviewer4:28
Ulrika, I'm thinking about what we touched on initially. In May, you announced a strategic review of the Consumer Tissue division. It is not the first time that a spin-off, or at least a separate listing, is on the table. Is there anything that suggests this could become a reality this time in 2026?
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Ulrika Kolsrud4:55
As we have communicated when we announced this for the first time, we expect that this analysis, this review, will take 6–12 months, so we are working on it right now. But we are looking at all possible alternatives, both a divestment and a separation, or keeping the business.
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Interviewer5:20
It is probably the business that is struggling the most right now, while at the same time you might sell it. Do you want to clean it up first? Can you reflect on whether you just want to get rid of it as soon as possible, or if you want to have things in order first?
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Ulrika Kolsrud5:37
No, that is not really what it is about. It is about wanting to create the best possible conditions for both the consumer tissue business and the rest of Essity to develop to their full potential and maximize value creation. We have long had a strategy where we want to optimize our portfolio and increase focus on the categories and segments that have the highest potential for growth, best margins, and highest return. So it is completely in line with that.
