Q2 2024 Electrolux AB Earnings Call Transcript
Key Points
- Electrolux AB (ELUXY) reported a 7% organic sales growth in Q2 2024, with volume growth in all business areas.
- EBIT improved sequentially by more than SEK1 billion to SEK419 million, driven by reduced losses in North America and strong results in Latin America.
- The company achieved SEK0.8 billion in cost efficiency in H1 2024, with a new organization successfully implemented.
- Electrolux AB (ELUXY) has a solid liquidity of SEK32.8 billion, including revolving credit facilities.
- Positive external factors were driven by lower raw material costs, contributing to improved financial performance.
- Despite organic sales growth, Electrolux AB (ELUXY) had a negative organic contribution to earnings due to lower net prices.
- Pricing continues to be negative year over year, particularly in Europe and North America.
- The company faces significant cost discrepancies between production in North America and Asia, impacting profitability.
- Cash flow after investments for the first half was negative SEK1.5 billion, although improved from the previous year.
- The divestment of the water heater business in South Africa resulted in an anticipated loss of SEK0.6 billion.
Good morning and a warm welcome to the second quarter 2024 results presentation. My name is Jonas Samuelson. And with me today, I have Therese Friberg, our CFO; and Oscar Stjerngren from Investor Relations.
Before I continue, I'd like to mention that this session is recorded and will be available on our website as an on-demand version.
In the second quarter sales grew 7% organically with volume growth in all business areas. Market demand was mixed with strong growth in Brazil, some catch-up in North America from the weak sell-in in Q1, and continued negative development in Europe.
Mix continued to be positive, supported by our strong product offering in mid and premium segments despite the negative market demand mix pressure. Pricing continues to be quite negative year over year, but was sequentially relatively stable in most markets.
We're happy to report that EBIT improved sequentially by more than SEK1 billion to SEK419 million, mainly driven by significantly reduced losses in North
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