STOCKHOLM, (Reuters) – The Essity Hygiene Products Group reported Wednesday a larger-than-expected fall in fourth quarter profit. It also stated that it plans to increase prices in light of record-high raw material and energy costs.

The operating profit of the second largest maker of consumer tissues in the world fell by 34% from last year to 2.75 Billion Swedish crowns ($297 Million), despite an increase in sales of 11%. Refinitiv polled five analysts who forecasted a 3.33 trillion crown profit.

Essity, who is also the leader worldwide in hygiene products to businesses and in incontinence, has announced plans to increase prices across all markets and product categories this year in order to cover the substantial higher costs.

Magnus Groth, Chief Executive Officer of Magnus Groth stated that “we do not anticipate a reduction in historically high prices for raw material and energy distribution in the short term.”

We must compensate for higher prices by increasing our customer and consumer value. However, we will continue to implement efficient measures and innovative technologies to improve cost-savings.

Essity said that the timing and magnitude of planned price rises would be controlled locally.

Essity, a rival to Procter & Gamble (NYSE:) and Kimberly-Clark (NYSE:), proposed a dividend of 7 crowns per share for 2021, up 4% from the year before.

($1 = 9.2543 Swedish crowns