Electrolux Professional AB (STU:4KK1)
€ 6.3 -0.02 (-0.32%) Market Cap: 1.81 Bil Enterprise Value: 2.08 Bil PE Ratio: 28.90 PB Ratio: 4.21 GF Score: 81/100
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Q3 2024 Electrolux Professional AB (publ) Earnings Call Transcript

Oct 25, 2024 / 08:00 AM GMT
Release Date Price: €5.94 (+1.19%)

Key Points

Positve
  • Electrolux Professional AB (ECTXF) reported a 6.2% increase in organic sales, driven by higher volumes across all business areas.
  • The company saw strong organic growth in Latin America, particularly in Brazil, with an increase in operating margin to 6.5% from 5.6% the previous year.
  • Cost reduction activities contributed positively, with cost efficiency improvements amounting to approximately 1.2 billion SEK year over year.
  • Cash flow after investments was positive at 1.1 billion SEK, reflecting a return to normal seasonal cash flow patterns.
  • The company has a solid liquidity position with 33.9 billion SEK, including revolving credit facilities, and issued a $100 million sustainability-linked loan.
Negative
  • Market demand in Europe declined slightly, particularly affecting the built-in kitchen category, leading to increased promotions and negative pricing.
  • Despite organic sales growth, there was a negative organic contribution to earnings due to a negative effect from price and mix.
  • The North American business area reported an operating loss of 249 million SEK, primarily due to price pressure and increased promotions.
  • Currency headwinds, particularly from Latin America, negatively impacted earnings, with a material adverse effect from the weakening Brazilian real.
  • The strategic divestment initiatives on non-core assets are progressing slower than expected, with the total potential investment value now expected to be below the previously communicated 10 billion SEK.


Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

EPROb.ST - Electrolux Professional AB (publ)
Q3 2024 Electrolux Professional AB (publ) Earnings Call
Oct 25, 2024 / 08:00AM GMT

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Presentation
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Operator [1]
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Good morning and a warm welcome to the third quarter, 2024 results presentation with me today, I have Terri our CFO and Oscar Green 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.

Organic sales increased by 6.2% driven by higher volumes in all the group's business areas.

Organic growth was strong in Latin America, especially in Brazil which continues on the trajectory started in the fourth quarter of 2023.

In Europe. Market demand declined slightly with continued weakness in the important built in kitchen category.

Despite challenging market conditions, volume
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