Electrolux Professional AB interim report Q2 2023

Second quarter, April-June 2023

• Net sales amounted to SEK 3,153m (2,731). Sales increased by 15.5%. Organically sales increased by 8.3%. Currency had an effect of 7.5%. The divestment of the Russian operations in 2022 had a negative effect of 0.3%.
• EBITA amounted to SEK 385m (233), corresponding to a margin of 12.2% (8.5). EBITA in the second quarter of last year, excluding items affecting comparability of SEK -35m, amounted to SEK 268m, corresponding to a margin of 9.8%.
• Operating income amounted to SEK 345m (196), corresponding to a margin of 10.9% (7.2).
• Income for the period amounted to SEK 257m (132), and earnings per share was SEK 0.89 (0.46).
• Operating cash flow after investments amounted to SEK 462m (88).

Alberto Zanata, President and CEO:

“Another positive step towards our financial targets

During the second quarter we grew profitably taking another positive step towards our financial targets. Sales increased organically by 8.3% compared to last year, and EBITA improved significantly to SEK 385m (233) with a corresponding margin of 12.2% (8.5). The higher EBITA was driven by price, and volume growth in Laundry.

Food and Beverage grew organically by 0.5% compared to last year with an EBITA margin of 12.2% (10.0) Sales grew in Europe, but declined in Americas and in Asia-Pacific. Business in China has not taken off as expected after the postpandemic re-opening. Sales declined in the US, mainly driven by a significant drop in our distribution sales of refrigerators due to destocking among customers. Order intake for the Food & Beverage segment remained at a good level overall despite somewhat softer demand in the US.

Laundry achieved an organic sales growth of 28.5% with particular strength in Europe and the US. The EBITA margin improved to 16.4% (10.4) due to volume and price, while the corresponding quarter of last year was impacted by component shortages. Order intake for Laundry was good.

The operating cash flow after investments improved significantly and amounted to SEK 462m (88). However, inventory that had previously been increased to mitigate the shortage of components and guarantee product availability continues to be high, hence activities to optimize inventory have been initiated since the supply chain has now stabilized.

We are committed to leading and transforming our industry towards a more sustainable future. I am therefore happy to report that we have reduced our CO2 emissions by 18% during the first half year of 2023 compared to 2022. Another important step in the field of sustainability is the launch of our energy efficient dryer “HeroDry” which can quickly dry reusable packaging. Together with our ware washing solutions the dryer will facilitate the reduction of certain single-use plastics, and thus enable hospitality outlets to realize their circular ambitions faster.

Overall market demand has held up well in the quarter, and our order stock remains at a good level. Although the US is somewhat soft, 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 and the Securities Markets Act The information was submitted for publication, through the agency of the contact person detailed below, at 8:00 a.m. CET on July 21, 2023.