Second quarter, April-June 2024
- Net sales amounted to SEK 3,268m (3,153), an increase of 3.7%. Organically, sales decreased by 0.7%. Acquisitions contributed by 5.9%. Currency translation had a negative effect of 1.6%.
- EBITA amounted to SEK 410m (385), corresponding to a margin of 12.5% (12.2). EBITA includes acquisition and integration related costs for TOSEI and Adventys of SEK 8m. Excluding acquisition and integration related costs, the comparable EBITA would have been SEK 418m, and the EBITA margin 12.8%.
- Operating income amounted to SEK 353m (345), corresponding to a margin of 10.8% (10.9).
- Income for the period amounted to SEK 230m (257), and earnings per share was SEK 0.80 (0.89).
- Operating cash flow after investments amounted to SEK 392m (462).
- On April 26, 2024, Adventys - a specialist in induction technology was acquired for a total consideration of SEK 259m.
Alberto Zanata, President, and CEO:
"Another step towards our margin target
During the second quarter profitability improved, mainly driven by increased contribution from Laundry.
Sales grew by 3.7% including acquisitions. Organically, sales declined by 0.7%. EBITA amounted to SEK 410m (385) including integration and acquisition related costs for Adventys and TOSEI of SEK 8m, resulting in an EBITA margin of 12.5% (12.2). Comparable EBITA margin, excluding the acquisition and integration related costs, amounted to 12.8%. Order intake was somewhat higher than a year ago.
Sales of Food & Beverage declined organically by 4.3% compared to last year. EBITA was on a similar level as last year, resulting in an EBITA margin of 12.3% (12.2). Sales in our largest market, Europe, were flat, while the US declined by 8% and APAC-MEA by 15%. The sales decline in APAC-MEA was fully attributable to the Middle East. In the US, we continue to see signs of recovery even if the institutional market is still weak. During the quarter the US chains business grew. Order intake continued to be somewhat higher than a year ago in the US, and order intake in Europe was significantly higher.
Sales of Laundry grew by 17% including the acquired TOSEI. Organically, sales increased by 6.7%. Sales to the US were particularly strong. The EBITA margin was 16.5% (16.4). Excluding TOSEI, the EBITA margin was 17.4%. Order intake was somewhat higher than a year ago.
The integration of TOSEI continues in line with plan. TOSEI added sales of SEK 171m in the quarter. The EBITA margin was, as expected in the seasonally weakest quarter for TOSEI, below 10%.
Adventys, a manufacturer of professional induction cooking equipment based in France, was acquired in April. The induction technology will become strategically important for the future of sustainable cooking, given its significantly lower CO2 emissions compared to gas - which currently is the most used heating system globally.
Operating cash flow after investments amounted to SEK 392m which is somewhat lower than last year (462), partly due to higher capital expenditures related to innovation projects to be launched in the coming years.
Related to sustainability, CO2 emissions from our operations decreased by 56% compared to the first half of last year due to increased use of energy from solar panels and reduced gas consumption.
I am pleased that despite an organic sales decline in Food & Beverage, we have been able to improve both profit and margin, driven by price, lower material costs and improved mix. This demonstrates that the quarter represents another step in the right direction."
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 07:30 a.m. CET on July 19, 2024.
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 13 plants in eight countries and sold in over 110 countries. In 2023, the Electrolux Professional Group had global sales of SEK 12bn and approximately 4,300 employees. Electrolux Professional's B-shares are listed at Nasdaq Stockholm. For more information, visit https://www.electroluxprofessionalgroup.com
