Essity beats Q2 profit forecast as volumes offset lower prices

July 16 (Reuters) - Swedish hygiene products maker Essity reported second-quarter core earnings slightly above expectations on Thursday as higher sales volumes offset lower prices, suggesting demand remained resilient despite continued cost pressures.

Essity's adjusted operating profit before amortisation (EBITA) fell to 4.69 billion Swedish crowns ($488.62 million), against analysts' average forecast of 4.6 billion crowns, according to LSEG's I/B/E/S data.

For the April-June period, adjusted EBITA margin decreased to 13.4% from 13.9% in the first quarter of 2026.

The Tork brand owner said product prices were 1.1% lower in the second quarter than a year earlier.

The surge in oil prices following the U.S.-Israeli war with Iran has added to cost pressures on consumer goods companies already grappling with higher costs and weaker consumer demand since the pandemic.

Geopolitical tensions continue to drive up input and transportation costs, which are being offset through price increases, CEO Ulrika Kolsrud said in the earnings statement.

($1 = 9.5984 Swedish crowns)

(Reporting by Vera Dvorakova and Alexander Klyve Gudbrandsen in Gdansk; Editing by Matt Scuffham and Bartosz Dabrowski)