Electrolux Slips To Loss In Q4; Sees SEK 550 Mln Charge In Q1; Warns On Weak Volume In FY23

Electrolux AB (ELUXY.PK), a Swedish home appliance major, reported Thursday that its fourth-quarter loss was 1.92 billion Swedish kronor, compared to profit of 596 million kronor last year. Loss per share was 7.12 kronor, compared to profit of 2.09 kronor a year ago.

Adjusted operating loss was 612 million kronor, compared to operating income of 1.61 billion kronor last year. Adjusted operating margin was negative 1.7 percent, compared to positive margin of 4.5 percent a year earlier.

In the fourth quarter, net sales amounted to 35.77 billion kronor, slightly higher than 35.37 billion kronor. Significantly lower sales volumes in all four business areas resulted in an organic sales decline of 8.4 percent.

Further, the Board of Directors proposed that no payment of dividend will be made for 2022.

Based on review of production capacity needs, the company has decided to discontinue production at the Nyíregyháza factory in Hungary from the beginning of 2024. This will result in a negative non-recurring item of approximately 550 million kronor in the first quarter of 2023.

Looking into 2023, consumer sentiment is anticipated to continue to be negatively impacted by a high inflation and interest rate environment, although with regional differences.

Demand for core appliances in 2023 full-year is expected to be negative for all regions except for the Asia-Pacific, Middle East and Africa region, which is assessed to be flat compared to 2022.

Based on this, volumes in 2023 are expected to decline year-over-year.

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