Highlights of the first quarter of 2024
- Net sales amounted to
SEK 31,077m (32,734). Organic sales decreased by 3.7% mainly driven by negative price. Weaker market demand resulted in lower volumes for the Group except inLatin America where increased consumer demand contributed to higher sales. - Mix improved supported by the new modularized platforms and attractive product offering, despite the challenging market conditions.
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Operating income was
SEK -720m (-256), corresponding to a margin of -2.3% (-0.8). Business areaNorth America reported an operating loss ofSEK 1,204m , mainly due to continued high price pressure. Business areaLatin America continued to perform well. Previously implemented cost efficiency measures contributed positively to earnings bySEK 0.6bn . - The new organization has been successfully implemented and expanded cost reduction measures are progressing according to plan. Earnings are expected to benefit from this mainly in the second half of 2024, as previously communicated.
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Income for the period amounted to
SEK -1,230m (-588) and earnings per share wereSEK -4.55 (-2.18). -
Operating cash flow after investments was
SEK -2,686m (-5,092), reflecting a normal seasonal pattern.
President and CEO
After having had the privilege to serve more than eight years as President & CEO of
During the first quarter of 2024, the new organization has been successfully implemented and operations are running according to plan. The new structure with three regional business areas and two global business lines, reporting directly to me, will further leverage the Group's global scale with fewer layers, increased focus and reduced costs. Due to the time lag before executed measures gain traction, savings are expected to mainly benefit earnings in the second half of 2024, as previously communicated.
2024 has started on a similar note as 2023 ended, with the cumulative effect of high inflation, high interest rates and geopolitical tensions continuing to weigh on consumer sentiment, which remained weak in our major markets. Although consumer confidence indicators seem to have bottomed out, this is, with the exception of
Organic sales declined by 3.7% driven by negative price and lower volumes that were partially offset by a positive mix. Our ability to continue generating a positive mix in this challenging market environment shows that our focus to strengthen our position in the mid- and premium categories continues to be effective. The positive reception of our products continued to be reflected in high consumer star ratings in the first quarter. We anticipate to accelerate mix contribution further as consumer sentiment recovers and new housing and renovations take a larger share of sales.
As expected, income for the Group was negative in the first quarter. Business area
We continue to successfully execute on the substantially expanded cost-reduction activities previously outlined in response to the increasing competitive pressure and weak market. We still have much work to do to meet this year's ambitious target of savings of
In line with our previously communicated outlook for 2024, we expect organic contribution to earnings from volume, price and mix combined for the Group to be negative in full-year 2024. The new market price levels established towards the end of 2023 largely remained in the first quarter. For the full year 2024, the negative price is anticipated to be partially offset by growth in our focus categories such as premium laundry and kitchen products under our main brands Electrolux,
In conclusion, market conditions remain challenging, and it is essential that we stay agile and ready to adapt to rapid changes in our environment. It is key that we continue to focus on strengthening our position in selected mid- and premium categories to consistently drive a positive mix. Our main priorities are to finalize the implementation of a leaner organization and deliver on our cost-reduction targets to return to profitable growth.
Telephone conference 09.00 CET
A telephone conference is held at 09.00 CET today,
To only listen to the telephone conference, use the link:
https://edge.media-server.com/mmc/p/brt7y8ix
OR
To both listen to the telephone conference and ask questions, use the link:
https://register.vevent.com/register/BI4c1be0ccefb74e0c8b3f98987f8dd42f
Presentation material available for download
www.electroluxgroup.com/ir
This is information that
For more information:
Maria Åkerhielm, Investor Relations, +46 70 796 38 56
Electrolux Group Press Hotline, +46 8 657 65 07
https://news.cision.com/electrolux-group/r/electrolux-group-interim-report-q1-2024,c3968484
https://mb.cision.com/Main/1853/3968484/2761837.pdf
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