STOCKHOLM, Oct. 23, 2020 /PRNewswire/ --
The comments and figures in this report refer to
continuing operations unless otherwise stated
Highlights of the third quarter of 2020
- Net sales amounted to SEK 32,004m
(30,330). Organic sales increased by 15.2%.
- Record high operating income of SEK
3,220m (1,063), corresponding to a margin of 10.1% (3.5),
mainly driven by strong volumes and prices. The comparison period
included non-recurring items of SEK
-290m.
- Significant market recovery driven mainly by pent-up demand and
government stimulus programs.
- Income for the period amounted to SEK
2,356m (610) and earnings per share was SEK 8.20 (2.12).
- Operating cash flow after investments was SEK 6,005m (2,499).
- The Board proposes to reinstate a dividend for 2019 of
SEK 7.00 (8.50) per share, to be paid
in one instalment.
President and CEO Jonas
Samuelson's comment
In the third quarter Electrolux reported record earnings of
SEK 3,220m, or 10.1% of net sales,
driven by pent-up demand and government stimulus programs impacting
consumer spending. This drove significant volume growth, and
positive price and mix improvement, resulting in organic sales
growth of 15.2%. The record high operating income translated into a
strong operating cash flow after investments of SEK 6,005m.
The strong demand in the quarter was to a significant extent a
recovery of the very low market volumes in March-May due to store
closures and restrictions on movement. Demand was further enhanced
by stimulus programs, more than compensating for the weaker economy
caused by the pandemic. Due to pandemic restrictions during the
first half of the year, we entered the quarter with unusually low
inventory levels, which have remained during the quarter despite
high production levels, somewhat impacting our ability to meet the
strong demand across all regions.
Sales also benefitted from consumers spending more time at home,
using their appliances more intensively and allocating more of
their household budgets to home improvement. This in combination
with our relentless focus on consumer experience innovation has
continued to improve demand for our more highly featured products,
driving favorable product mix.
One great experience innovation example is the Frigidaire
Gallery AirFry cooker that recently received the 2020 innovation
award at the Home Depot. The AirFry cooker also delivers a
significantly higher gross margin compared to traditional cookers.
Innovation is truly a key pillar for creating value and that is why
we will showcase how we are driving profitable growth through
innovation at our online Capital Markets Update on November 17.
The Board of Directors proposed to reinstate a dividend for the
fiscal year 2019 based on the recovery in earnings and cash flow.
The proposed dividend of SEK 7 per
share will be up for decision at an Extraordinary General Meeting
on November 3. Our strong commitment
to sustainability remains unchanged with the target of climate
neutrality by 2050, and I am pleased that the long-term incentive
program for senior managers proposed by the Board includes a
substantial climate impact reduction element.
Looking into the fourth quarter, visibility remains limited as
demand may be impacted by several factors, especially as the
pandemic is still very much present. However, we currently
anticipate that consumer demand and thus financial performance will
normalize gradually going forward. Considering this and the
catch-up effect during the third quarter, we are revising our
market outlook for the full-year 2020 upwards. We anticipate market
demand for appliances in Europe to
be slightly positive, in North
America to be slightly positive to positive and in
Latin America to be positive. It
is only the combined demand in our larger markets in the
Asia-Pacific, Middle East and Africa region that we still expect to be
negative for 2020.
I am very proud of how we as an organization successfully have
navigated in these challenging times. My colleagues around the
world has done a great job in executing on our strategy. That is
why I am confident that Electrolux remains well positioned to
create value.
Telephone conference 09.00 CET
A telephone conference is held at 09.00 CET today, October 23. Jonas
Samuelson, President and CEO and Therese Friberg, CFO will comment on the
report.
Details for participation by telephone are as follows:
Participants in Sweden: +46 8
566 426 51
Participants in UK/Europe: +44
3333 000 804
Participants in US: +1 631 9131 422
Pin code: 36830556#
Slide presentation for download:
www.electroluxgroup.com/ir
Link to webcast:
https://edge.media-server.com/mmc/p/yv4vxegt
For further information, please contact:
Sophie Arnius, Head of Investor Relations +46 70 590 80 72
Åsa Öhman, Electrolux Press Hotline, +46 8 657
65 07
This is information that AB Electrolux 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 set out above, at 0800 CET on
October 23, 2020.
This information was brought to you by Cision
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