Hygiene and health company Essity is not yet fully impacted by the surge in energy prices following Middle East tensions, thanks to its hedging strategy. CEO Ulrika Kolsrud shared this insight with Dagens industri during an investor conference in the U.S.

However, this protection is time-bound. The company has hedged approximately 80 percent of its gas purchases for the first quarter and over 50 percent for the full year 2026.

According to Kolsrud, certain segments of the business will see a more immediate impact, such as transport costs due to indexed contracts. She noted, however, that these expenses represent only a minor portion of the cost of goods sold.

The company aims to adjust its pricing as a means to offset rising costs.

"Our intention is to compensate for cost increases through price adjustments. But this does not just affect us; it impacts the entire industry. All market participants are affected," she stated.

Essity purchases approximately 6 TWh of fossil gas annually, an amount equivalent to 60 percent of Sweden's total consumption.