Highlights of the full-year of 2022
- In full-year 2022, net sales were
SEK 134,880m (125,631) and operating income excl. non-recurring items wasSEK 831m (7,528). Earnings declined due to lower volumes, as a result of weaker market demand, and to elevated cost levels from production inefficiencies inNorth America . Strong price execution and attractive product and brand offering contributed positively to earnings.
Highlights of the fourth quarter of 2022
- In the fourth quarter, net sales amounted to
SEK 35,769m (35,372) and operating income toSEK -1,964m (882), corresponding to a margin of -5.5% (2.5). -
Operating income includes non-recurring items of
SEK -1,352m (-727). Excluding these non-recurring items, operating income amounted toSEK -612m (1,609), corresponding to a margin of -1.7% (4.5). The year-over-year decline was a result of lower volumes in all four business areas and significantly higher cost levels inBusiness Area North America , which reported an underlying loss ofSEK 1.2bn . -
Income for the period amounted to
SEK -1,922m (596) and earnings per share wereSEK -7.12 (2.09). -
Operating cash flow after investments was
SEK 242m (2,103). - The Board of Directors proposes that no payment of dividend will be made for 2022.
-
Decision on
February 1, 2023 , to discontinue production at the Nyíregyháza factory inHungary from the beginning of 2024 will result in a negative non-recurring item of approximatelySEK 550m in the first quarter of 2023.
President and CEO
In 2022, new challenges presented themselves in addition to supply chain constraints: high general inflation, raised interest rates, soaring energy prices, and increased geopolitical tensions. These negatively impacted consumer demand for household appliances, especially evident in the latter part of the year.
In the fourth quarter, significantly lower sales volumes resulted in an organic sales decline of 8.4%. The volume decline across all regions was coupled with severely elevated cost levels in our North American operation. This resulted in an operating loss for the Group of
On a positive note, I am pleased with how well received our product launches across all regions have been during 2022. This was particularly evident in the fourth quarter with the strong earnings contribution from our attractive product offering, even in this challenging demand environment with reduced consumer purchasing power. This strengthens my confidence in our ability to drive mix improvement also going forward, with an average consumer star rating of 4.64 for the Group in 2022. Another achievement was the strong net price realization across all regions, despite promotional activity returning to normal levels towards the end of 2022. I am very pleased that we through price increases fully offset significant cost inflation, primarily in raw material and logistics, both in the full-year as well as in the quarter.
It is encouraging that we have reduced our climate footprint significantly and already in 2022 reached the 2025 science-based climate target to reduce CO2 emissions in our own operations by 80% compared to 2015. We are now reviewing our targets going forward, raising the bar on our own sustainability agenda even further.
Based on our review of production capacity needs, we have decided to discontinue production at the Nyíregyháza factory in
Looking into 2023, consumer sentiment is anticipated to continue to be negatively impacted by a high inflation and interest rate environment, although with regional differences. Demand for core appliances in 2023 full-year is therefore expected to be negative for all regions except for the
On the back of this, we estimate our volumes in 2023 to decline year-over-year, partly mitigated by mix improvements from our strong offering. We expect External factors to be negative for the year, driven by energy and labor cost inflation as well as currency headwind and most of this will impact
I am convinced that we have the right strategy as well as the experience and the organizational structure needed to navigate in volatile environment and seize opportunities. A successful implementation of the Group-wide cost reduction and
Telephone conference 09.00 CET
A telephone conference is held at 09.00 CET today,
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This is information that
For further information, please contact:
Sophie Arnius, Investor Relations, +46 70 590 80 72
Electrolux Press Hotline, +46 8 657 65 07
Electrolux is a leading global appliance company that has shaped living for the better for more than 100 years. We reinvent lifetime taste, care and wellbeing experiences for millions of people, always striving to be at the forefront of sustainability in society through our solutions and operations. Under our brands, including Electrolux,
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