Electrolux Professional AB interim report Q2 2022
Second quarter, April – June 2022
• Net sales amounted to SEK 2,731m (1,958). Sales increased by 39,5%. Organically sales increased by 15.1%. The acquisition of Unified Brands contributed with 17.9%. Currency had an effect of 6.5%.
• EBITA amounted to SEK 233m (197), corresponding to a margin of 8.5% (10.1). EBITA excluding items affecting comparability of SEK –35m related to the divestment of the Russian business amounted SEK 268m (197), corresponding to a margin of 9.8% (10.1).
• Operating income amounted to SEK 196m (181), corresponding to a margin of 7.2% (9.2).
• Operating cash flow after investments amounted to SEK 88m (223).
• Income for the period amounted to SEK 132m (168), and earnings per share was SEK 0.46 (0.58).
• On July 6, 2022, operations in Russia were divested to local management.
Alberto Zanata, CEO and President:
“Strong sales growth and increased EBITA, despite negative impact from component shortage
The second quarter was the fifth consecutive quarter of strong sales growth, which underlines the solid recovery of the hospitality industry.
Sales in the quarter increased organically by 15.1% compared to last year and grew 39.5% in total, including the recently acquired Unified Brands business and the positive impact from currency. Sales were strong in all regions, but particularly strong in the Americas.
EBITA for the second quarter was SEK 268m (197) with a corresponding margin of 9.8% (10.1), excluding items affecting comparability of SEK –35m related to the divestment of the Russian business.
The improved EBITA was primarily driven by increased sales volumes and the contribution from Unified Brands. However, we were not able to fully compensate the increased raw material and component cost increases in Laundry which had a negative net impact of approximately SEK –30m. In Food & Beverage we were able to cover the gap between price and raw material. We expect the net between price increases and raw material cost to be positive in the third quarter.
Sales of Food & Beverage was strong with an organic growth of 22.9%, reporting an EBITA margin, excluding items affecting comparability, of 10.8% (9.1). Growth was strong throughout all regions despite China experiencing a very negative development due to a new pandemic lock-down. Unified Brands, which was acquired in December 2021, saw strong sales growth with an underlying EBITA margin being accretive to the Food & Beverage segment. This development gives support to the strategy to grow in the US and in chains.
Sales of Laundry grew organically only by 2.2%, despite a continued strong customer demand and high order-stock. Component shortages, especially circuit boards from China, have caused lower deliveries generating a negative result impact. The EBITA margin, excluding items affecting comparability, for Laundry was 12.9% (15.6). On the positive side, the component situation improved towards the end of the quarter and sales are being shifted to the third quarter.
Despite the uncertain geopolitical situation, and the significant inflation in the world, our main customer base in the hospitality industry is currently experiencing a high activity and demand level. The high order stock, the improved component availability and a positive price impact, gives us a good foundation 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 22, 2022.
Media contact Jacob Broberg, Chief Communication & Investor Relations Officer +46 70 190 00 33
Electrolux Professional is one of the leading global providers of food service, beverage and laundry for professional users. Our innovative products and worldwide service network make our customers’ work-life easier, more profitable – and truly sustainable every day. Our solutions and products are manufactured in 12 plants in seven countries and sold in over 110 countries. In 2021, Electrolux Professional had global sales of SEK 7,9bn and approximately 4,000 employees. For more information, visit https://www.electroluxprofessional.com/corporate/
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