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Electrolux Professional Interim / Quarterly Report 2021
2909_10-q_2021-04-27_33c175d8-8daa-4463-980a-a83b2e06e5a7.pdf
Interim / Quarterly Report
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Electrolux Professional – Interim Report, Q1 2021
Interim report
First quarter, January–March 2021
> The Covid-19 pandemic continued to impact the hospitality industry. Net sales amounted to SEK 1,661m (2,091). Sales decreased by 20.6%. Organically sales decreased by 15.3%.
> EBITA amounted to SEK 103m (221), corresponding to a margin of 6.2% (10.6).
> Operating income amounted to SEK 88m (205), corresponding to a margin of 5.3% (9.8).
> Operating cash flow after investments amounted to SEK 23m (16).
> Income for the period amounted to SEK 55m (159), and earnings per share was SEK 0.19 (0.55).
Key ratios
| SEKm | First quarter | ||
|---|---|---|---|
| Jan–Mar 2021 | Jan–Mar 2020 | Change, % | |
| Net sales | 1,661 | 2,091 | -20.6 |
| EBITA* | 103 | 221 | -53.2 |
| EBITA margin, %* | 6.2 | 10.6 | |
| Operating income | 88 | 205 | -57.3 |
| Operating margin, % | 5.3 | 9.8 | |
| Income after financial items | 83 | 203 | -59.0 |
| Income for the period | 55 | 159 | -65.2 |
| Earnings per share, SEK¹ | 0.19 | 0.55 | |
| Operating cash flow after investments* | 23 | 16 | |
| Operating working capital % of net sales* | 19.4 | 18.2 |
*) Alternative performance measures used in this report are explained on pages 23–24.
1) Basic number of outstanding shares.
First page
Message from the CEO
Financial overview
Financial reports
Definitions
Shareholders information
Message from the CEO:
Still strongly impacted by the pandemic, but signs of recovery
Alberto Zanata, President and CEO
Although it is too early to say that the effects from the pandemic are over there are signs of business recovery.
The slowdown of the market recovery we saw towards the end of the fourth quarter last year continued into the first quarter of 2021. On a positive note, we see signs of market recovery. In the month of March, sales grew year-over-year for the first time in more than 12 months, but still behind 2019 levels as several countries are still affected by the pandemic measures.
Sales in the quarter declined organically by 15.3%. Sales of Laundry continued to be less affected while sales of Food & Beverage was more affected with a decline on the same level as the end of last year, primarily driven by a weak development in Europe.
Short-term savings, organic sales growth in March, a relatively good performance in Laundry together with the restructuring plan announced in September 2020, partially mitigated the effect from the sales decline. EBITA for the first quarter was SEK 103m (221) with a corresponding margin of 6.2% (10.6). Currency transactions burdened the result with approximately SEK 20m. Operating cash flow after investments amounted to SEK 23m (16).
From a segment view, sales of Food & Beverage declined organically by 21.1% in the quarter, reporting an EBITA margin of 2.3% (7.9). However, sales of Food & Beverage grew in Asia-Pacific, Middle East and Africa. Sales of Laundry declined organically by 7.1%, reporting an EBITA margin of 14.7% (17.7). The sales decline in Laundry was mostly related to a strong reference quarter
last year including a larger stock built-up in the US. Sales of Laundry grew in the Nordics, UK, Japan and China.
Sales of Customer Care is declining in line with product sales.
Product innovation in the period include an upgrade on the Line 6000 range of washers and dryers as well as the launch of the new SP Ultra Frozen Beverage Dispenser with its UV lighting for improved sanitization.
During the quarter, the new factory building in Thailand and the transfer of the production of Laundry has been completed. The transfer of Beverage products is ongoing and is expected to be finalized in June.
Although it is too early to say that the effects from the pandemic are over - especially as some of our largest markets in Europe are still strongly affected by government measures - there are signs of business recovery. This is not only visible in the countries where the pandemic is under control and where vaccinations are progressing well. The recovery is also being demonstrated by traditional Hospitality and Foodservice trade shows that again took place physically, such as Gulfood in Dubai and Hotelex in Shanghai. I believe these to be strong examples of a comeback for the hospitality industry as soon as restrictions are lifted and confidence among people to socialize again returns.
Alberto Zanata, President and CEO
Electrolux Professional - Interim Report, Q1 2021
Financial overview
First quarter development
Net sales
Net sales for the first quarter amounted to SEK 1,661m (2,091), a decline by 20.6% compared to the same period last year. Organically, sales decreased by 15.3% and currency contributed negatively by 5.2%.
The sales decline was driven by lower sales volumes due to the impact from the pandemic. Sales of Food & Beverage declined organically by 21.1% with Beverage being more affected than Food. Sales of Laundry declined organically by 7.1%. Organically, sales in Europe declined approximately 15%, in Americas by approximately 30% while sales in Asia-Pacific, Middle East and Africa were flat.
| Changes in net sales, % | Jan-Mar 2021 | Jan-Mar 2020 |
|---|---|---|
| Organic growth* | -15.3 | -13.7 |
| Acquisitions* | - | 1.7 |
| Changes in exchange rates | -5.2 | 2.9 |
| Total | -20.6 | -9.2 |
*) Alternative performance measures used in this report are explained on pages 23-24.
Share of sales by segment, January-March 2021
Share of sales by region, January-March 2021
Operating income and EBITA
Operating income excluding amortization of intangible assets (EBITA) amounted to SEK 103m (221) corresponding to a margin of 6.2% (10.6). Operating income amounted to SEK 88m (205), corresponding to a margin of 5.3% (9.8). The decline in operating income is mainly due to lower sales volumes.
Short-term cost activities together with already implemented structural cost savings to mitigate the sales decline contributed positively. These actions have reduced cost in the quarter by approximately SEK 60m compared to the first quarter of 2020.
Sales and EBITA margin
1) The third quarter 2020 includes items affecting comparability of SEK -77m.
Financial net
Net financial items amounted to SEK -4m (-2).
Income for the period
Income for the period amounted to SEK 55m (159), corresponding to SEK 0.19 (0.55) in earnings per share. Income tax for the period amounted to SEK -28m (-44).
Group common cost
Group common cost was SEK -28m (-28).
Electrolux Professional - Interim Report, Q1 2021
P. 3
Segment Food & Beverage
In the first quarter, sales for Food & Beverage were SEK 905m (1,243), a decline by 27.2% compared to the same period last year. Organically sales decreased by 21.1% and currency had a negative effect of 6.0%.
Sales continued to be heavily impacted by the pandemic and decreased by approximately 25% in Europe and approximately 20% in Americas, while it grew by approximately 4% in Asia-Pacific, Middle East and Africa. Sales grew in Oceania and China but were weak in South East Asia.
Operating income excluding amortization of intangible assets (EBITA) amounted to SEK 21m (99), corresponding to a margin of 2.3% (7.9). EBITA declined due to lower volumes. Operating income amounted to SEK 9m (87), corresponding to a margin of 1.0% (7.0).
Sales and EBITA margin
1) The third quarter 2020 includes items affecting comparability of SEK -55m.
| SEKm | First quarter | Full year | ||
|---|---|---|---|---|
| Jan-Mar 2021 | Jan-Mar 2020 | Change, % | 2020 | |
| Net sales | 905 | 1,243 | -27.2 | 4,198 |
| Organic growth, % | -21.1 | -20.4 | -28.1 | |
| Acquisitions, % | - | 2.7 | 0.5 | |
| Changes in exchange rates, % | -6.0 | 3.1 | -1.2 | |
| EBITA | 21 | 99 | -79.0 | 87 |
| EBITA margin, % | 2.3 | 7.9 | 2.1 | |
| Operating income | 9 | 87 | -89.5 | 35 |
| Operating margin, % | 1.0 | 7.0 | 0.8 |
Electrolux Professional - Interim Report, Q1 2021
Segment Laundry
In the first quarter, sales for Laundry were SEK 756m (848), a decline by 10.9% compared to the same period last year. Organically sales decreased by 7.1% and currency had a negative effect of 3.8%.
Sales in Europe grew approximately 1% and declined by approximately 2% in Asia-Pacific, Middle East and Africa. In Americas sales declined by almost 45%, thereby accounting for almost the full decline of sales in Laundry. The decline in Americas is mainly due to a strong comparator from the first quarter of last year when a substantial stock was built in the US. Sales grew in the Nordics, UK, Japan and China.
During the quarter, the old Laundry factory in Thailand was closed and production was transferred to the new factory in Thailand.
Operating income excluding amortization of intangible assets (EBITA) amounted to SEK 111m (150), corresponding to a margin of 14.7% (17.7). EBITA was negatively affected by transfer of production to a new factory in Thailand and transactional currency effects totaling approximately SEK 30m. Operating income amounted to SEK 107m (146), corresponding to a margin of 14.1% (17.3).
Sales and EBITA margin
1) The third quarter 2020 includes items affecting comparability of SEK -22m.
| SEKm | First quarter | Full year | ||
|---|---|---|---|---|
| Jan-Mar 2021 | Jan-Mar 2020 | Change, % | 2020 | |
| Net sales | 756 | 848 | -10.9 | 3,065 |
| Organic growth, % | -7.1 | -2.1 | -8.7 | |
| Changes in exchange rates, % | -3.8 | 2.4 | -0.8 | |
| EBITA | 111 | 150 | -26.2 | 467 |
| EBITA margin, % | 14.7 | 17.7 | 15.2 | |
| Operating income | 107 | 146 | -27.1 | 452 |
| Operating margin, % | 14.1 | 17.3 | 14.7 |
Electrolux Professional - Interim Report, Q1 2021
Net sales, EBITA and operating income by segment
| SEKm | First quarter | Full year | |
|---|---|---|---|
| Jan-Mar 2021 | Jan-Mar 2020 | 2020 | |
| Food & Beverage | |||
| Net sales | 905 | 1,243 | 4,198 |
| EBITA | 21 | 99 | 87 |
| Amortization | -12 | -12 | -53 |
| Operating income | 9 | 87 | 35 |
| Laundry | |||
| Net sales | 756 | 848 | 3,065 |
| EBITA | 111 | 150 | 467 |
| Amortization | -4 | -4 | -16 |
| Operating income | 107 | 146 | 452 |
| Group common costs | |||
| EBITA | -28 | -28 | -99 |
| Amortization | -0 | -0 | -1 |
| Operating income | -28 | -28 | -100 |
| Total Group | |||
| Net sales | 1,661 | 2,091 | 7,263 |
| EBITA | 103 | 221 | 456 |
| Amortization | -16 | -16 | -69 |
| Operating income | 88 | 205 | 387 |
| Financial items, net | -4 | -2 | -24 |
| Income after financial items | 83 | 203 | 363 |
| Taxes | -28 | -44 | -85 |
| Income for the period | 55 | 159 | 278 |
First page
Message from the CEO
Financial overview
Financial reports
Definitions
Shareholders information
Electrolux Professional - Interim Report, Q1 2021
Cash flow
Operating cash flow after investments amounted to SEK 23m (16) in the quarter.
Operating cash flow after investments
| SEKm | First quarter | Full year | |
|---|---|---|---|
| Jan-Mar 2021 | Jan-Mar 2020 | 2020 | |
| Operating income | 88 | 205 | 387 |
| Depreciation | 54 | 57 | 228 |
| Amortization | 16 | 16 | 69 |
| Other non-cash items | 4 | 3 | 91 |
| Operating income adjusted for non-cash items | 162 | 281 | 775 |
| Change in inventories | -42 | -125 | 113 |
| Change in trade receivables | -3 | -11 | 362 |
| Change in accounts payable | -45 | 75 | -140 |
| Change in other operating assets, liabilities and provisions | -14 | -108 | -293 |
| Operating cash flow | 57 | 113 | 816 |
| Investments in tangible and intangible assets | -34 | -104 | -273 |
| Changes in other investments | -0 | 7 | 26 |
| Operating cash flow after investments | 23 | 16 | 570 |
Operating working capital
Operating working capital as percent of annualized net sales improved to 19.4% in the first quarter of 2021 compared to 19.9% in the fourth quarter of 2020. Compared to the first quarter of 2020, operating working capital as percent of annualized net sales is still higher since the effects from the pandemic were still limited in the beginning of 2020. Trade receivables as percent of annualized sales improved compared to fourth quarter of 2020 whilst inventory ratio to sales increased.
Operating working capital of annualized net sales, %
Electrolux Professional - Interim Report, Q1 2021
Financial position
Net debt
As of March 31, 2021, Electrolux Professional had a financial net debt position (excluding lease liabilities and post-employment provisions) of SEK 235m compared to SEK 202m as of December 31, 2020. Lease liabilities amounted to SEK 228m and net provisions for post-employments benefits decreased to SEK 83m.
In total, net debt amounted to SEK 546m as of March 31, 2021, compared to SEK 549m on December 31, 2020.
Long-term borrowings amounted to SEK 600m and short-term borrowings amounted to SEK 257m. Total borrowings amounted to SEK 865m compared to SEK 1,012m on December 31, 2020.
Liquid funds as of March 31, 2021, amounted to SEK 630m compared to SEK 643m as of December 31, 2020.
Credit facilities and loans
Electrolux Professional has one term loan of SEK 600m with a tenure of seven years from 2020. The existing revolving credit facilities has during the quarter been extended to 2026 and at the same time reduced to EUR 200m. As of March 31, 2021, EUR 25m of the revolving credit facility was utilized.
Net debt
| SEKm | Mar 31, 2021 | Mar 31, 2020 | Dec 31, 2020 |
|---|---|---|---|
| Short-term loans | 257 | 666 | 403 |
| Short-term borrowings | 257 | 666 | 403 |
| Financial derivative liabilities | 6 | 11 | 6 |
| Accrued interest expenses and prepaid interest income | 2 | 2 | 2 |
| Total short-term borrowings | 265 | 679 | 412 |
| Long-term loans | 600 | 601 | 601 |
| Long-term borrowings | 600 | 601 | 601 |
| Total borrowings^{1} | 865 | 1,280 | 1,012 |
| Cash and cash equivalents | 616 | 627 | 797 |
| Financial derivative assets | 13 | 14 | 12 |
| Prepaid interest expenses and accrued interest income | 1 | 1 | 1 |
| Liquid funds | 630 | 643 | 810 |
| Financial net debt | 235 | 638 | 202 |
| Lease liabilities | 228 | 230 | 216 |
| Net provisions for post-employment benefits | 83 | 221 | 131 |
| Net debt^{*} | 546 | 1,088 | 549 |
| Net debt/EBITDA ratio^{*} | 1.0 | 0.9 | 0.8 |
| EBITDA^{*} | 563 | 1,196 | 684 |
*) Alternative performance measures used in this report are explained on pages 23-24.
1) Whereof interest-bearing borrowings amounting to SEK 857m as of March 31, 2021, SEK 1,267m as of March 31, 2020 and SEK 1,004m as of December 31, 2020.
Electrolux Professional - Interim Report, Q1 2021
Electrolux Professional – Interim Report, Q1 2021
Other disclosures
Conversion of shares
According to Electrolux Professional's articles of association, owners of A-shares have the right to have such shares converted to B-shares. Conversion reduces the total number of votes in the Company. 68,773 shares were converted in the first quarter. The total number of registered shares in the company on March 31, 2021 amounted to 287,397,450 of which 8,051,754 are Series A and 279,345,696 are Series B. The total number of votes amounted to 35,986,323.6.
Related party transactions
Buying and selling services and products between Electrolux Professional and AB Electrolux and its subsidiaries were regarded as related party transactions up until March 23, 2020, and consisted of purchase of goods, SEK 15m and interest expense, SEK 1m. Transactions with related parties were on market-based terms.
Employees
The number of employees at the end of the quarter was 3,437 (3,608).
Events after the balance sheet date
After the end of the reporting period, no significant events have taken place that could affect the company's operations.
Annual General Meeting 2021
Electrolux Professional's Annual General Meeting will be held on April 28, 2021. Due to the coronavirus pandemic, the Board of Directors has decided that the Annual General Meeting shall be conducted without the physical presence of shareholders, representatives or third parties and that the shareholders should be able to exercise their voting rights only by post before the meeting.
Parent Company
The Parent Company's activities include head office as well as production and sales in and from Sweden.
Net sales for the Parent Company, Electrolux Professional AB, for the period from January 1 to March 31, 2021 amounted to SEK 540m (651) of which SEK 233m (270) referred to sales to Group Companies and SEK 307m (381) to external customers.
Income after financial items was SEK 15m (106). Income for the period amounted to SEK 11m (83).
Capital expenditure and intangible assets was SEK 2m (6). Liquid funds at the end of the period amounted to SEK 235m, compared to SEK 425m at the start of the year.
Undistributed earnings in the Parent Company at the end of the period amounted to SEK 5,806m, compared to SEK 5,794m at the start of the year.
The income statement and balance sheet for the Parent Company are presented on page 18.
Risk and uncertainty factors
Electrolux Professional is an international group with a wide geographic spread and is thus exposed to a number of business and financial risks. Risk management in Electrolux Professional aims to identify, control and reduce risks. The risk factors are described in the Annual Report and consist of strategic risks, operational risks, industry risks, sustainability risks and financial risks. Compared to the Annual Report, which was issued on March 31, 2021, no new material risks have been identified. Electrolux Professional expects that its financial performance during the first half of 2021 will continue to be affected by the pandemic related to the coronavirus.
First page
Message from the CEO
Financial overview
Financial reports
Definitions
Shareholders information
Stockholm, April 27, 2021
Electrolux Professional AB (publ)
Alberto Zanata
President and CEO
This report has not been audited or reviewed by external auditors.
P. 9
Electrolux Professional – Interim Report, Q1 2021
P. 10
Laundry solutions – Washers & dryers: Line 6000 Range completion
"Shaping the effortless laundry"
New design
- New updated aesthetics
- One family feeling
- Cost reduction
- Complexity reduction
Performance
- Outstanding productivity and long-term savings
Certified ergonomics
- ErgoCert certification for ergonomic design and ease of use.
Connectivity
- Remote monitoring
Beverage solutions – SP Ultra Frozen Beverage Dispenser
"Design and technology to save time and improve workflow, profits and customer satisfaction."
Hygiene and quality
- UV light for sanitization
High performing
- Maintains a constant temperature and consistency up to the last serving thanks to the PATENTED** Hybrid Texture Control
** Patented (EP33137581 and related family)
First page
Message from the CEO
Financial overview
Financial reports
Definitions
Shareholders information
Financial reports
Consolidated statement of total comprehensive income
| SEKm | First quarter | Full year | |
|---|---|---|---|
| Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 | |
| Net sales | 1,661 | 2,091 | 7,263 |
| Cost of goods sold | -1,110 | -1,322 | -4,896 |
| Gross operating income | 551 | 769 | 2,367 |
| Selling expenses | -317 | -388 | -1,355 |
| Administrative expenses | -147 | -179 | -631 |
| Other operating income and expenses | -0 | 2 | 5 |
| Operating income | 88 | 205 | 387 |
| Financial items, net | -4 | -2 | -24 |
| Income after financial items | 83 | 203 | 363 |
| Taxes | -28 | -44 | -85 |
| Income for the period | 55 | 159 | 278 |
| Items that will not be reclassified to income for the period: | |||
| Remeasurement of provisions for post-employment benefits | 46 | 2 | 83 |
| Income tax relating to items that will not be reclassified | -6 | -1 | -8 |
| 40 | 1 | 75 | |
| Items that may be reclassified subsequently to income for the period: | |||
| Exchange-rate differences on translation of foreign operations | 115 | 185 | -263 |
| Other comprehensive income, net of tax | 156 | 186 | -188 |
| Total comprehensive income for the period | 211 | 345 | 90 |
| Income for the period attributable to: | |||
| Shareholders of the Parent Company | 55 | 159 | 278 |
| Total | 55 | 159 | 278 |
| Total comprehensive income for the period attributable to: | |||
| Shareholders of the Parent Company | 211 | 345 | 90 |
| Total | 211 | 345 | 90 |
| Earnings per share, SEK | |||
| Basic, SEK | 0.19 | 0.55 | 0.97 |
| Diluted, SEK | 0.19 | 0.55 | 0.97 |
| Average number of shares | |||
| Basic, million | 287.4 | 287.4 | 287.4 |
| Diluted, million | 287.4 | 287.4 | 287.4 |
Electrolux Professional - Interim Report, Q1 2021
Consolidated balance sheet
| SEKm | Mar 31, 2021 | Mar 31, 2020¹ | Dec 31, 2020¹ |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Property, plant and equipment, owned | 1,267 | 1,336 | 1,254 |
| Property, plant and equipment, right-of-use | 223 | 226 | 211 |
| Goodwill | 1,756 | 1,946 | 1,690 |
| Other intangible assets | 299 | 399 | 305 |
| Deferred tax assets | 347 | 351 | 344 |
| Pension plan assets | 63 | - | 21 |
| Other non-current assets | 28 | 28 | 27 |
| Total non-current assets | 3,982 | 4,285 | 3,853 |
| Current assets | |||
| Inventories | 1,153 | 1,457 | 1,086 |
| Trade receivables | 1,293 | 1,774 | 1,265 |
| Tax assets | 92 | 92 | 53 |
| Other current assets | 239 | 237 | 244 |
| Cash and cash equivalents | 616 | 627 | 797 |
| Total current assets | 3,394 | 4,187 | 3,444 |
| Total assets | 7,376 | 8,472 | 7,297 |
| Equity and liabilities | |||
| Equity attributable to shareholders of the Parent Company | |||
| Share capital | 29 | 29 | 29 |
| Other paid-in capital | 5 | 5 | 5 |
| Other reserves | 118 | 450 | 3 |
| Retained earnings | 2,843 | 2,555 | 2,747 |
| Equity attributable to shareholders of the Parent Company | 2,995 | 3,039 | 2,784 |
| Total equity | 2,995 | 3,039 | 2,784 |
| Non-current liabilities | |||
| Long-term borrowings | 600 | 601 | 601 |
| Long-term lease liabilities | 164 | 159 | 151 |
| Deferred tax liabilities | 143 | 160 | 135 |
| Provisions for post-employment benefits | 146 | 221 | 152 |
| Other provisions | 223 | 266 | 243 |
| Total non-current liabilities | 1,276 | 1,407 | 1,282 |
| Current liabilities | |||
| Trade payables | 1,265 | 1,627 | 1,289 |
| Tax liabilities | 334 | 318 | 324 |
| Other liabilities | 1,034 | 1,144 | 988 |
| Short-term borrowings | 257 | 666 | 403 |
| Short-term lease liabilities | 64 | 71 | 65 |
| Other provisions | 153 | 200 | 162 |
| Total current liabilities | 3,106 | 4,026 | 3,232 |
| Total equity and liabilities | 7,376 | 8,472 | 7,297 |
¹) Periods in year 2020 are restated due to an adjustment of deferred tax assets related to post-employment benefits for the years 2017-2019 related to the Combined Financial Statements, affecting deferred tax assets and equity by SEK -17m.
Electrolux Professional - Interim Report, Q1 2021
Change in consolidated equity
| First quarter | Full year | ||
|---|---|---|---|
| SEKm | Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
| Opening balance | 2,784 | 2,711 | 2,711 |
| Adjustment to opening balance¹ | – | –17 | –17 |
| Total comprehensive income for the period | 211 | 345 | 90 |
| Closing balance | 2,995 | 3,039 | 2,784 |
¹) Adjustment of deferred tax assets related to post-employment benefits for the years 2017-2019 related to the Combined Financial Statements.
Electrolux Professional – Interim Report, Q1 2021
Consolidated cash flow statement
| SEKm | First quarter | Full year | |
|---|---|---|---|
| Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 | |
| Operations | |||
| Operating income | 88 | 205 | 387 |
| Depreciation and amortization | 70 | 73 | 297 |
| Other non-cash items | 4 | 3 | 91 |
| Financial items paid, net¹ | -4 | -0 | -22 |
| Taxes paid | -51 | -18 | -66 |
| Cash flow from operations, excluding change in operating assets and liabilities | 107 | 263 | 687 |
| Change in operating assets and liabilities | |||
| Change in inventories | -42 | -125 | 113 |
| Change in trade receivables | -3 | -11 | 362 |
| Change in accounts payable | -45 | 75 | -140 |
| Change in other operating assets, liabilities and provisions | -14 | -108 | -293 |
| Cash flow from change in operating assets and liabilities | -104 | -169 | 41 |
| Cash flow from operations | 3 | 94 | 729 |
| Investments | |||
| Capital expenditure in property, plant and equipment | -33 | -100 | -267 |
| Capital expenditure in product development | - | -1 | -1 |
| Capital expenditure in other intangibles | -1 | -3 | -5 |
| Other | -0 | 7 | 26 |
| Cash flow from investments | -34 | -97 | -246 |
| Cash flow from operations and investments | -31 | -2 | 483 |
| Financing | |||
| Change in short-term borrowings, net² | -141 | 617 | 413 |
| New long-term borrowings | - | 600 | 600 |
| Amortization of long-term borrowings | -0 | -1 | -1 |
| Payment of lease liabilities | -19 | -23 | -82 |
| Change in financial liabilities, Electrolux Group | - | -1,224 | -1,224 |
| Cash flow from financing | -160 | -31 | -294 |
| Total cash flow | -191 | -33 | 189 |
| Cash and cash equivalents at beginning of period | 797 | 651 | 651 |
| Exchange-rate differences referring to cash and cash equivalents | 11 | 10 | -42 |
| Cash and cash equivalents at end of period | 616 | 627 | 797 |
1) For the period January 1 to March 31: interest and similar items received SEK 2.0m (2.6), interest and similar items paid SEK -2.1m (-2.7) and other financial items received/paid SEK -2.2m (1.2). Interest paid for lease liabilities SEK -1.6m (-1.6).
2) Of which short-term loans with a duration of more than 3 months for the period January 1 to March 31; new loans SEK 266m (619), repaid loans SEK 407m (2).
Electrolux Professional - Interim Report, Q1 2021
Alternative performance measures key figures
| SEKm, if not otherwise stated | First quarter | Full year | |
|---|---|---|---|
| Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 | |
| Net sales | 1,661 | 2,091 | 7,263 |
| Organic growth, %* | -15.3 | -13.7 | -21.0 |
| EBITA* | 103 | 221 | 456 |
| EBITA margin, %* | 6.2 | 10.6 | 6.3 |
| EBITA excl. items affecting comparability* 1 | 103 | 221 | 533 |
| EBITA margin excl. items affecting comparability, %* 1 | 6.2 | 10.6 | 7.3 |
| Operating income | 88 | 205 | 387 |
| Operating margin, % | 5.3 | 9.8 | 5.3 |
| Operating excl. items affecting comparability* 1 | 88 | 205 | 464 |
| Operating margin excl. items affecting comparability, %* 1 | 5.3 | 9.8 | 6.4 |
| Income after financial items | 83 | 203 | 363 |
| Income for the period | 55 | 159 | 278 |
| Capital expenditure* | -34 | -104 | -273 |
| Operating cash flow after investments* | 23 | 16 | 570 |
| Earnings per share, SEK² | 0.19 | 0.55 | 0.97 |
| Net debt* | 546 | 1,088 | 549 |
| EBITDA* 3 | 563 | 1,196 | 684 |
| Net debt/EBITDA ratio* | 1.0 | 0.9 | 0.8 |
| Operating working capital % of net sales⁴ | 19.4 | 18.2 | 19.9 |
| Average number of shares, million | 287.4 | 287.4 | 287.4 |
| Number of employees, end of period | 3,437 | 3,608 | 3,515 |
*) Alternative performance measures used in this report are explained on pages 23-24.
1) For information on items affecting comparability, see page 17.
2) Basic number of outstanding shares.
3) Rolling four quarters.
Electrolux Professional - Interim Report, Q1 2021
Quarterly data
| SEKm | Q1 2021 | Full year 2020 | Q4, 2020 | Q3, 2020 | Q2, 2020 | Q1, 2020 |
|---|---|---|---|---|---|---|
| Food & Beverage | ||||||
| Net sales | 905 | 4,198 | 1,047 | 1,070 | 838 | 1,243 |
| EBITA | 21 | 87 | 11 | 42 | -64 | 99 |
| EBITA margin, % | 2.3 | 2.1 | 1.0 | 4.0 | -7.7 | 7.9 |
| Amortization | -12 | -53 | -19 | -11 | -11 | -12 |
| Operating income | 9 | 35 | -8 | 31 | -75 | 87 |
| Operating margin, % | 1.0 | 0.8 | -0.8 | 2.9 | -9.0 | 7.0 |
| Laundry | ||||||
| Net sales | 756 | 3,065 | 888 | 678 | 651 | 848 |
| EBITA | 111 | 467 | 150 | 79 | 88 | 150 |
| EBITA margin, % | 14.7 | 15.2 | 16.9 | 11.6 | 13.5 | 17.7 |
| Amortization | -4 | -16 | -4 | -4 | -4 | -4 |
| Operating income | 107 | 452 | 146 | 75 | 84 | 146 |
| Operating margin, % | 14.1 | 14.7 | 16.4 | 11.1 | 13.0 | 17.3 |
| Group common costs | -28 | -100 | -19 | -26 | -27 | -28 |
| Total Group | ||||||
| Net sales | 1,661 | 7,263 | 1,935 | 1,748 | 1,489 | 2,091 |
| EBITA | 103 | 456 | 142 | 96 | -4 | 221 |
| EBITA margin, % | 6.2 | 6.3 | 7.3 | 5.5 | -0.2 | 10.6 |
| Amortization | -16 | -69 | -23 | -15 | -15 | -16 |
| Operating income | 88 | 387 | 119 | 81 | -18 | 205 |
| Operating margin, % | 5.3 | 5.3 | 6.1 | 4.6 | -1.2 | 9.8 |
| Financial items, net | -4 | -24 | -5 | -8 | -8 | -2 |
| Income after financial items | 83 | 363 | 113 | 73 | -26 | 203 |
| Income for the period | 55 | 278 | 70 | 77 | -28 | 159 |
| Earnings per share, SEK¹ | 0.19 | 0.97 | 0.24 | 0.27 | -0.10 | 0.55 |
1) Basic number of outstanding shares.
Electrolux Professional - Interim Report, Q1 2021
Items affecting comparability
| SEKm | Q1, 2021 | Full year 2020 | Q4, 2020 | Q3, 2020¹ | Q2, 2020 | Q1, 2020 |
|---|---|---|---|---|---|---|
| Food & Beverage | – | –55 | – | –55 | – | – |
| Laundry | – | –22 | – | –22 | – | – |
| Total Group | – | –77 | – | –77 | – | – |
¹) The SEK –77m relates to restructuring charges for efficiency measures and are included in the functional lines cost of goods sold, selling expenses and administrative expenses.
| SEKm | Q1, 2021 | Full year 2020 | Q4, 2020 | Q3, 2020 | Q2, 2020 | Q1, 2020 |
|---|---|---|---|---|---|---|
| Total Group | ||||||
| Operating income excl. items affecting comparability | 88 | 464 | 119 | 158 | –18 | 205 |
| Operating margin excl. items affecting comparability, % | 5.3 | 6.4 | 6.1 | 9.0 | –1.2 | 9.8 |
| EBITA excl. items affecting comparability | 103 | 533 | 142 | 173 | –4 | 221 |
| EBITA margin excl. items affecting comparability, % | 6.2 | 7.3 | 7.3 | 9.9 | –0.2 | 10.6 |
Shares
| Number of shares | A-shares | B-shares | Shares total |
|---|---|---|---|
| Number of shares as of January 1, 2021 | 8,120,527 | 279,276,923 | 287,397,450 |
| Conversion of shares | –68,773 | 68,773 | |
| Number of shares as of March 31, 2021 | 8,051,754 | 279,345,696 | 287,397,450 |
Exchange rates
| SEK | Mar 31, 2021 | Mar 31, 2020 | Dec 31, 2020 | |||
|---|---|---|---|---|---|---|
| Average | End of period | Average | End of period | Average | End of period | |
| CNY | 1.29 | 1.33 | 1.39 | 1.42 | 1.33 | 1.25 |
| CZK | 0.3876 | 0.3916 | 0.4147 | 0.4050 | 0.3969 | 0.3831 |
| DKK | 1.36 | 1.38 | 1.43 | 1.48 | 1.41 | 1.35 |
| EUR | 10.14 | 10.24 | 10.71 | 11.06 | 10.48 | 10.06 |
| GBP | 11.56 | 12.02 | 12.48 | 12.48 | 11.83 | 11.14 |
| JPY | 0.0791 | 0.0788 | 0.0892 | 0.0930 | 0.0861 | 0.0795 |
| NOK | 0.98 | 1.02 | 1.02 | 0.96 | 0.98 | 0.95 |
| RUB | 0.1118 | 0.1159 | 0.1440 | 0.1287 | 0.1275 | 0.1095 |
| THB | 0.2767 | 0.2793 | 0.3095 | 0.3079 | 0.2938 | 0.2735 |
| TRY | 1.11 | 1.05 | 1.57 | 1.53 | 1.33 | 1.11 |
| USD | 8.40 | 8.73 | 9.70 | 10.10 | 9.18 | 8.19 |
Electrolux Professional - Interim Report, Q1 2021
Condensed Parent company income statement
| SEKm | First quarter | Full year | |
|---|---|---|---|
| Jan-Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 | |
| Net sales | 540 | 651 | 2,266 |
| Cost of goods sold | -379 | -432 | -1,566 |
| Gross operating income | 161 | 219 | 700 |
| Selling expenses | -88 | -88 | -330 |
| Administrative expenses | -56 | -33 | -135 |
| Other operating income and expenses | 3 | 8 | -6 |
| Operating income | 20 | 106 | 229 |
| Financial income and expenses | -5 | 0 | -7 |
| Impairment of shares in subsidiaries | 0 | 0 | -2,039 |
| Financial items, net | -5 | 0 | -2,046 |
| Income after financial items | 15 | 106 | -1,817 |
| Appropriations | 0 | 0 | -5 |
| Income before taxes | 15 | 106 | -1,822 |
| Taxes | -4 | -23 | -64 |
| Income for the period | 11 | 83 | -1,886 |
Condensed Parent company balance sheet
| SEKm | Mar 31, 2021 | Mar 31, 2020 | Dec 31, 2020 |
|---|---|---|---|
| Assets | |||
| Non-current assets | 6,441 | 8,517 | 6,452 |
| Current assets | 1,786 | 1,888 | 1,885 |
| Total assets | 8,227 | 10,405 | 8,337 |
| Equity and liabilities | |||
| Restricted equity | 46 | 49 | 47 |
| Non-restricted equity | 5,806 | 7,760 | 5,794 |
| Total equity | 5,852 | 7,809 | 5,841 |
| Untaxed reserves | 114 | 109 | 114 |
| Provisions | 92 | 97 | 92 |
| Non-current liabilities | 600 | 600 | 600 |
| Current liabilities | 1,569 | 1,790 | 1,690 |
| Total equity and liabilities | 8,227 | 10,405 | 8,337 |
Electrolux Professional - Interim Report, Q1 2021
Notes
Note 1 Accounting principles
Electrolux Professional applies International Financial Reporting Standards (IFRS) as adopted by the European Union. This report has been prepared in accordance with IAS 34, Interim Financial Reporting.
Electrolux Professional interim reports contain a condensed set of financial statements. For the Group this chiefly means that the disclosures are limited compared to the annual report. Enumerated amounts presented in tables and statements may not always agree with the calculated sum of the related line items due to rounding differences. The aim is for each line item to agree with its source and therefore there may be rounding differences affecting the total when adding up the presented line items.
The accounting principles adopted in the preparation of this interim report apply to all periods and comply with the accounting principles presented in the Group's Annual Report 2020.
For the Parent Company financial statements in general are presented in condensed versions and with limited disclosures compared to the annual report. The interim financial statements of Electrolux Professional AB have been prepared in accordance with the Swedish Annual Accounts Act and the accounting standard RFR 2, accounting for legal entities. The most recent annual financial statements of Electrolux Professional AB have been prepared in compliance with the Swedish Annual Accounts Act (1995:1554) and recommendation RFR2, Accounting for legal entities of the Swedish Financial Reporting Board.
Reportable segments
Food & Beverage and Laundry represent the Group's reportable segments.
Note 2 Disaggregation of revenue
Sales of products are revenue recognized at a point in time, when control of the products has transferred. Revenue from services related to installation of products, repairs or maintenance service is recognized when control is transferred being over the time the service is provided. Sales of these services are not material in relation to Electrolux Professional total net sales.
Geography is considered to be an important attribute when disaggregating Electrolux Professional revenue. Therefore, the table below presents net sales per geographical region based on the location of the end customer.
| SEK | First quarter | |
|---|---|---|
| Jan-Mar 2021 | Jan-Mar 2020 | |
| Geographical region | ||
| Europe | 1,160 | 1,450 |
| Asia-Pacific, Middle East and Africa | 274 | 294 |
| Americas | 227 | 347 |
| Total | 1,661 | 2,091 |
Electrolux Professional - Interim Report, Q1 2021
Note 3 Fair values and carrying amounts of financial assets and liabilities
| SEK | Hierarchy level | Mar 31, 2021 | Mar 31, 2020 | Dec 31, 2020 | |||
|---|---|---|---|---|---|---|---|
| Fair value | Carrying amount | Fair value | Carrying amount | Fair value | Carrying amount | ||
| Per category | |||||||
| Financial assets at fair value through profit and loss | 3 | 0 | 0 | 1 | 1 | 0 | 0 |
| Financial assets measured at amortized cost | 1,909 | 1,909 | 2,402 | 2,402 | 2,062 | 2,062 | |
| Derivatives, financial assets at fair value through profit and loss | 2 | 13 | 13 | 14 | 14 | 12 | 12 |
| Total financial assets | 1,923 | 1,923 | 2,416 | 2,416 | 2,074 | 2,074 | |
| Financial liabilities measured at amortized cost | 2,118 | 2,122 | 2,894 | 2,894 | 2,289 | 2,293 | |
| Derivatives, financial liabilities at fair value through profit and loss | 2 | 6 | 6 | 11 | 11 | 6 | 6 |
| Total financial liabilities | 2,125 | 2,128 | 2,905 | 2,905 | 2,295 | 2,299 |
The Group strives for arranging master-netting agreements (ISDA) with the counterparts for derivative transactions and has established such agreements with the majority of the counterparties, i.e., if a counterparty will default, assets and liabilities will be netted. Derivatives are presented gross in the balance sheet.
Fair value estimation
Valuation of financial instruments at fair value is done at the most accurate market prices available. Instruments which are quoted on the market, e.g., the major bond and interest-rate future markets, are all marked-to-market with the current price. The foreign-exchange spot rate is used to convert the value into SEK. For instruments where no reliable price is available on the market, cash-flows are discounted using the deposit/swap curve of the cash flow currency. If no proper cash-flow schedule is available, e.g., as in the case with forward-rate agreements, the underlying schedule is used for valuation purposes.
To the extent option instruments are used, the valuation is based on the Black & Scholes' formula. The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities is estimated by discounting the future contractual cash flows at the current market-interest rate for similar financial instruments. The Group's financial assets and liabilities are measured according to the following hierarchy:
Level 1: Quoted prices in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included in Level 1 that are observable for assets or liabilities either directly or indirectly.
Level 3: Inputs for the assets or liabilities that are not entirely based on observable market data.
Note 4 Contingent liabilities
| SEKm | Mar 31, 2021 | Mar 31, 2020 | Dec 31, 2020 |
|---|---|---|---|
| Group | |||
| Guarantees and other commitments | 126 | 133 | 129 |
On January 21, 2020, a supplier filed a lawsuit in Italy against Electrolux Professional. The total claimed amount during 2020 was EUR 12.1m, approximately SEK 121m, and covers alleged damages related to products and prices during the contractual period and compensation for costs and damages resulting
from the allegedly wrongful termination of the supply agreement. Electrolux Professional rejects the claim but it cannot be ruled out that the final outcome could have a significant impact on Electrolux Professional's operating income and cash flow
Electrolux Professional - Interim Report, Q1 2021
Note 5 Covid-19
As a consequence of the Covid-19 pandemic, Electrolux Professional has assessed any potential impact on the carrying value of asset and liabilities.
Trade receivables
No material increase in actual credit losses has been experienced. Collection of trade receivables is carefully monitored. Management have stressed the need for even more focus on forward looking evaluation of the risk of not being able to collect payments and therefore the expected credit loss provision has increased to SEK 107m on March 31, 2021 compared to SEK 100m on December 31, 2020.
Credit insurance and other forms of collaterals, for example letter of credit and bank guarantees are used as a protection against credit risk. In addition, some sales are also made to governmental institutions which are deemed as secure.
Inventories
No extraordinary material write-down of finished goods inventories or supplies have been recognized as a consequence of the Covid-19 situation.
Impairment of assets
No material impairment of assets has been recognized in the consolidated financial statements as a direct consequence of Covid-19.
Government grants and government assistance
Companies within the Group have received or assume that they fulfil the requirements of monetary help from governments. As of March 31, 2021 the amount recognized in profit or loss is SEK 20m (4) and refers mainly to short-term furlough of personnel.
First page
Message from the CEO
Financial overview
Financial reports
Definitions
Shareholders information
Electrolux Professional – Interim Report, Q1 2021
Operations by segment yearly
| SEKm | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|
| Food & Beverage | ||||
| Net sales | 4,198 | 5,895 | 5,399 | 4,922 |
| EBITA | 87 | 568 | 629 | 607 |
| EBITA, % | 2.1 | 9.6 | 11.7 | 12.3 |
| Operating income | 35 | 522 | 599 | 572 |
| Margin, % | 0.8 | 8.9 | 11.1 | 11.6 |
| Laundry | ||||
| Net sales | 3,065 | 3,386 | 3,267 | 2,801 |
| EBITA | 467 | 507 | 573 | 502 |
| EBITA, % | 15.2 | 15.0 | 17.6 | 17.9 |
| Operating income | 452 | 488 | 558 | 499 |
| Margin, % | 14.7 | 14.4 | 17.1 | 17.8 |
| Group common cost | ||||
| Operating income | -100 | -18 | -14 | -11 |
| Total Group | ||||
| Net sales | 7,263 | 9,281 | 8,666 | 7,723 |
| EBITA | 456 | 1,058 | 1,188 | 1,098 |
| EBITA, % | 6.3 | 11.4 | 13.7 | 14.2 |
| Operating income | 387 | 992 | 1,143 | 1,060 |
| Margin, % | 5.3 | 10.7 | 13.2 | 13.7 |
Four year overview
| SEKm, if not otherwise stated | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|
| Net sales | 7,263 | 9,281 | 8,666 | 7,723 |
| Organic growth, % | -21.0 | -0.3 | 4.1 | 5.6 |
| EBITA | 456 | 1,058 | 1,188 | 1,098 |
| EBITA, % | 6.3 | 11.4 | 13.7 | 14.2 |
| Operating income | 387 | 992 | 1,143 | 1,060 |
| Operating margin, % | 5.3 | 10.7 | 13.2 | 13.7 |
| Income after financial items | 363 | 978 | 1,134 | 1,052 |
| Income for the period | 278 | 663 | 952 | 786 |
| Items affecting comparability | -77 | -32 | - | - |
| Capital expenditure | -273 | -257 | -169 | -167 |
| Operating cash flow after investments | 570 | 1,138 | 1,131 | 1,167 |
| Earnings per share, SEK¹ | 0.97 | 2.31 | 3.31 | 2.74 |
| Net debt | 549 | 1,025 | -226 | -481 |
| EBITDA | 684 | 1,280 | 1,363 | 1,253 |
| Net debt/EBITDA ratio | 0.8 | 0.8 | -0.2 | -0.4 |
| Average number of shares, million | 287.4 | 287,4 | 287,4 | 287,4 |
| Number of employees, end of period | 3,515 | 3,624 | 3,555 | 3,183 |
¹) Basic number of outstanding shares.
Electrolux Professional - Interim Report, Q1 2021
Definitions
Definitions and reconciliation of alternative performance measures
Electrolux Professional presents certain measures that are not defined under IFRS (alternative performance measures – “APMs”). These are used by management to assess the financial and operational performance of the Group. Management believes that these APMs provide useful information regarding the Group’s financial and operating performance. Such measures may not be comparable to similar measures presented by other companies. Consequently, APMs have limitations as analytical tools and should not be considered in isolation or as a substitute for related financial measures prepared in accordance with IFRS. The APMs have been derived from the Electrolux Professional’s internal reporting and are not audited. The APM reconciliations can be found on Electrolux Professional website www.electroluxprofessional.com/corporate/interim-reports/
| APM | Definition | Reason for use |
|---|---|---|
| Organic growth % | Change in sales growth excluding net FX impact and acquisitions. | The Group’s presentation currency is SEK while the net sales are mainly in other currencies. Organic growth is dependent on fluctuations in SEK versus other currencies and in addition acquired business can have an impact on reported net sales. Organic growth adjusted for acquisitions and currency shows the underlying sales development without these parameters. |
| Acquisitions % | Change in net sales during the current period attributable to acquired operation in relation to prior period’s sales, following a period of 12 months commencing on the acquisition date. | See “Organic growth” above. |
| Operating income (EBIT) | Earnings before interest and tax. | Used as an indicator that shows the Group’s ability to make a profit, regardless of the method of financing (then determines the optimal use of debt versus equity). |
| Operating margin (EBIT margin) | Operating income as a percentage of net sales. | Operating margin shows the operating income in percentage of net sales. Operating margin is a key internal measure as the Group believes that it provides users of the financial statements with a better understanding of the Group’s financial performance both short and long term. |
| Items affecting comparability | Material profit or loss items such as capital gains and losses from divestments of product groups or major units, close down or significant down-sizing of major units or activities, restructuring activities, significant impairment, and other major costs or income items. | Summarizes events and transactions with significant effects, which are relevant for understanding the financial performance when comparing income for the current period with previous periods. |
| Operating income excluding items affecting comparability | Operating income less items affecting comparability. | Operating income excluding items affecting comparability shows the operating income adjusted for items affecting comparability. This is a key internal measure, as the Group believes that it provides users of the financial statements with a better understanding of the Group’s financial performance both short and long term. |
Electrolux Professional – Interim Report, Q1 2021
| APM | Definition | Reason for use |
|---|---|---|
| Operating margin excluding items affecting comparability | Operating income excluding items affecting comparability as a percentage of net sales. | Operating margin excluding items affecting comparability shows the operating income in percentage of net sales adjusted for items affecting comparability. This is a key internal measure, as the Group believes that it provides users of the financial statements with a better understanding of the Group's financial performance both short and long term. |
| Capital expenditure | Investments in property, plant and equipment, product development and other intangible assets. | Used to ensure that cash spending is in line with Group's overall strategy for the use of cash. |
| EBITA | Operating income less amortization and write-down related to intangibles assets (excluding right of use assets). | EBITA gives an indication of the operating income less amortization and write-down related to intangibles assets (excluding right of use assets) and is mainly used to follow up operating income without the distortion of amortization of surplus values related to acquisitions. |
| EBITA margin | EBITA expressed as a percentage of net sales. | Used to evaluate business performance in relation to net sales in order to measure the efficiency of the Company. |
| EBITDA | EBITA less depreciation of tangible assets (including right of use assets). | EBITDA is an indicator for business' cash generating capacity in relation to sales. |
| EBITA excluding items affecting comparability | Operating income less amortization and write-down related to intangibles assets (excluding right of use assets) and less items affecting comparability. | Items affecting comparability vary between years and periods and in order to analyze trends items affecting comparability are excluded from EBITA. |
| EBITA margin excluding items affecting comparability | EBITA excluding items affecting comparability, expressed as a percentage of net sales. | Items affecting comparability vary between years and periods and in order to analyse trends, items affecting comparability are excluded from EBITA margin. |
| Operating cash flow after investments | Cash flow from operations and investments adjusted for financial items paid, net, taxes paid and acquisitions/divestments of operations. | Used to monetarize the cash from core operation. |
| Net debt | Short-term borrowings (short-term loans and trade receivables with recourse), accrued interest expenses and prepaid interest income and long-term borrowings, lease liabilities, net provisions for post-employment benefits, less liquid funds (cash and cash equivalents, prepaid interest expenses and accrued interest income). | Net debt describes the Group's total debt financing and is monitored by management. |
| Net debt/EBITDA | Net debt in relation to EBITDA (Net debt is based on the end of period balance and EBITDA is calculated based on last four rolling quarters). | A measurement of financial risk, showing net debt in relation to cash generation. |
| Operating working capital, % of net sales | All months of the period are currency adjusted by applying the end of period average currency rate.Sum of currency adjusted last twelve months' average of trade receivables, trade payables and inventories (Operating working capital) as percentage of currency adjusted last twelve months' average net sales. | Used to evaluate how efficient the Group is generating cash in relation to net sales. |
Electrolux Professional - Interim Report, Q1 2021
Shareholders information
President and CEO Alberto Zanata's comments on the first quarter results 2021
Today's press release is available on the Electrolux Professional website www.electroluxprofessional.com/corporate
Telephone conference 09.00 CET
A telephone conference is held at 09.00 today, April 27. Alberto Zanata, President and CEO and Fabio Zarpellon, CFO will comment on the report.
Details for participation by telephone are as follows:
Participants in Sweden: +46 8 566 427 05
Participants in UK/Europe: +44 333 300 9264
Participants in US: +1 833 526 8381
Slide presentations for download:
www.electroluxprofessional.com/corporate
Link to webcast:
https://electroluxprofessional.creo.se/210427
For further information, please contact:
Jacob Broberg, Senior Vice President Investor Relations and Communications + 46 70 190 00 33
Financial calendar
| Annual General Meeting 2021 | April 28, 2021 |
|---|---|
| Interim report Q2 2021 | July 22, 2021 |
| Interim report Q3 2021 | October 28, 2021 |
| Interim report Q4 2021 | January 28, 2022 |
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 in the column to the left, at 8:00 a.m. CET on April 27, 2021.
Mission
Making Electrolux Professional's customers' work-life easier, more profitable – and truly sustainable every day.
Strategy
Electrolux Professional's strategy focuses on four pillars, built on a foundation of operational excellence to improve sales productivity and cost efficiency within the supply chain.
GROW the business by developing sustainable, innovative low-running cost solutions: Set the pace of industry innovation in sustainability and energy efficiency, complemented with a connected and digital platform meeting customers' needs.
EXPAND in food service chains, especially in North America, grow in beverage and expand in emerging markets: Increase the global footprint and market position in selected industry verticals organically and through selective M&A as a further accelerator.
BOOST Customer Care (aftermarket sales) by further developing the global service network and competence as a full-service provider while increasing sales of accessories and consumables to enhance product performance and ownership experience.
LEVERAGE the OnE approach: Strengthen the position as a full-solution provider within food, beverage and laundry to cater for all customers' needs under one global brand and make customers' lives easier in a world of connected appliances.
Financial targets
Organic sales growth
Organic annual growth of more than 4 percent over time, complemented by value accretive acquisitions.
EBITA margin
EBITA margin of 15 percent
Operating
working capital
Operating working capital below 15 percent of net sales.
Net debt/EBITDA
Leverage ratio below 2.5x Net debt/EBITDA. Higher levels may be temporarily acceptable in case of acquisitions, provided a clear path to deleveraging.
Dividend policy
30 percent of net income
Electrolux Professional - Interim Report, Q1 2021
About Electrolux Professional
Electrolux Professional 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 11 plants in seven countries and sold in over 110 countries. In 2020, Electrolux Professional had global sales of SEK 7,3bn and approximately 3,500 employees.
For more information, visit www.electroluxprofessional.com/corporate
This report contains 'forward-looking' statements that reflect the company's current expectations. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations prove to have been correct as they are subject to risks and uncertainties that could cause actual results to differ materially due to a variety of factors. These factors include, but are not limited to, changes in consumer demand, changes in economic, market and competitive conditions, currency fluctuations, developments in product liability litigation, changes in the regulatory environment and other government actions.
Forward-looking statements speak only as of the date they were made, and, other than as required by applicable law, the company undertakes no obligation to update any of them in light of new information or future events.
Electrolux PROFESSIONAL
Electrolux Professional AB (publ), 556003-0354
Postal and visiting address: S:t Göransgatan 143,
SE-112 17 Stockholm
Telephone: +46 8 41056450
Website: www.electroluxprofessional.com/corporate