Electrolux Professional AB interim report Q3 2023
Third quarter, July–September 2023
- Net sales amounted to SEK 2,752m (2,782). Sales decreased by 1.1%. Organically sales decreased by 5.3%. Currency had a positive effect of 4.3%.
- EBITA amounted to SEK 290m (317), corresponding to a margin of 10.5% (11.4).
- Operating income amounted to SEK 247m (277), corresponding to a margin of 9.0% (10.0).
- Income for the period amounted to SEK 159m (195), and earnings per share was SEK 0.55 (0.68).
- Operating cash flow after investments amounted to SEK 333m (56).
Alberto Zanata, President and CEO:
"Somewhat weaker sales and profitability while cash generation increased
After more than two years of recovery after the pandemic, we experienced an organic sales decline of 5% during the third quarter. This resulted in a somewhat weaker EBITA of SEK 290m (317), and a margin of 10.5% (11.4), compared to last year. Currency transaction effects had a negative impact on EBITA of approximately SEK 40m. Thanks to a better working capital development, operating cash flow improved to SEK 333m (56).
Sales of Food & Beverage declined organically by 8% compared to last year, resulting in an EBITA margin of 9.3% (10.5). Sales and order intake declined significantly in the US versus last year while Europe was close to flat.
Laundry had a flat organic sales development. In 2022, there was a shift of sales and production from the second quarter to the third and mainly the fourth quarter following component shortages. The EBITA margin ended at 16.1% (17.3). Sales grew in Europe but declined in the US. Order intake for Laundry was on the same level as last year.
Cash flow after investments was solid amounting to SEK 333m (56) in the quarter. Hence, we further reduced our debt, and our net debt EBITDA ratio is now at 1.2x. During the quarter, we also launched a commercial paper program and offered an inaugural issuance. The demand from credit investors was high.
I am very happy to report that our targets to reduce greenhouse gas emissions (scope 1 and 2) and indirect use phase emissions (scope 3) have now been validated by the Science Based Targets initiative. We have reduced our own CO2 emissions (Scope 1 and 2) by 18% during the first nine months of the year, compared to 2022. This means that we are very close to meeting our target of reducing CO2 emissions by 50% by 2025 compared to 2015, hopefully one year earlier than planned.
During October, we are organizing open houses, known as “The Hive”, at our Center of Excellence in Italy. At the events participants can experience how we are a leading brand when it comes to sustainable and digital solutions. This concept has proven to be very appreciated by our customers.
To meet the needs for compact solutions that increase productivity in the kitchen, we have also launched GourmeXpress. This high-speed oven includes a combination of microwave, convection and impingement allowing rapid cooking, grilling and reheating, especially well-suited for restaurant chains.
The recent more negative customer sentiment, mainly in the US, has already prompted actions to reduce cost. A healthy order stock gives us some comfort for the end of the year.“
This information is information that Electrolux Professional AB (publ) 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 detailed below, at 07:30 a.m. CET on October 27, 2023.
For more information, please contact Jacob Broberg, Chief Communication & Investor Relations Officer +46 70 190 00 33
The Electrolux Professional Group 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 2022, the Electrolux Professional Group had global sales of SEK 11bn and approximately 4,000 employees. Electrolux Professional’s B-shares are listed at Nasdaq Stockholm. For more information, visit https://www.electroluxprofessionalgroup.com