Electrolux Professional AB interim report Q1 2023

First quarter, January–March 2023

• Net sales amounted to SEK 2,968m (2,484). Sales increased by 19.5%. Organically sales increased by 12.7%. Currency had an effect of 7.3%. The divestment of the Russian operations in 2022 had a negative effect of 0.6%.
• EBITA amounted to SEK 340m (236), corresponding to a margin of 11.4% (9.5).
• Operating income amounted to SEK 301m (199), corresponding to a margin of 10.1% (8.0).
• Income for the period amounted to SEK 190m (155), and earnings per share was SEK 0.66 (0.54).
• Operating cash flow after investments amounted to SEK 87m (–42).

Alberto Zanata, President and CEO:

“Continued healthy market, and improved profitability

Sales in the quarter increased organically by 12.7% compared to last year. Sales growth was strong in most countries, except in the US and China.

EBITA for the first quarter amounted to SEK 340m (236) with a corresponding margin of 11.4% (9.5). The higher EBITA was driven by price and volume, particularly in Laundry.

Food and Beverage achieved an organic sales growth of 9.1%, with an EBITA margin of 9.6% (8.1). Growth was driven by a very positive development in Europe and South-East Asia, while sales declined in the US and China. The US sales decline was primarily driven by dealer and chain customers’ inventory reductions in order to normalize stock levels. This should be seen in the perspective of customer build up of inventory levels in 2022, due to supply chain disruptions. Order intake for the Food & Beverage segment was good for the majority of the quarter, although we saw a softening towards the end of the quarter.

Laundry achieved an organic sales growth of 19.6% and an EBITA margin of 18.2% (17.4). The sales growth was particularly strong in Europe. Our energy-saving solutions, such as heat pump dryers and energy-efficient washers and dryers, contributed to the strong development.

Several important trade fairs have been held in Europe and the US during the quarter. The largest was the NAFEM show in the US where we, for the first time, showcased ten brands and over 50 Food and Beverage solutions under the umbrella of the Electrolux Professional Group brand. This illustrates our strengthened US position, which will enable us to further enlarge our customer base.

To continue to strengthen our position in the fast-growing espresso coffee market we are now launching a new range of fully-automatic, high-performing espresso machines, the TANGO® XP line. The launch underlines our ambition to become a leading player in this segment.

We have set ambitious targets of reducing our carbon emission level in operations by 50% in 2025 compared to 2015, and to be carbon neutral in operations by 2030. I am pleased to report that we are on track to meet those targets, and emissions have so far been reduced by 45%.

Market demand has held up well in the quarter, although the US was somewhat soft. Hence, but also based on our current order stock, we remain cautiously optimistic for the next quarter.”

 

This information is information that Electrolux Professional AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person detailed in the column above, at 8:00 a.m. CET on April 25, 2023.

For more information, please contact Jacob Broberg, Chief Communication & Investor Relations Officer +46 70 190 00 33