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Electrolux Interim / Quarterly Report 2024
2907_10-q_2025-01-30_df34fd81-e2cb-48eb-a551-c39556c496b3.pdf
Interim / Quarterly Report
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- In full-year 2024, net sales increased to SEK 136,150m (134,451) and operating income excl. non-recurring items was SEK 1,666m (414). Higher sales volumes and positive mix contributed positively to earnings, driven by the attractive product offering. Cost reduction measures contributed to a SEK 4.0bn positive impact from cost efficiency.
- In the fourth quarter, net sales amounted to SEK 37,968m (35,636) and organic sales increased by 11.5% driven by higher volumes and positive mix. Operating income was SEK 1,052m (-3,215), corresponding to a margin of 2.8% (-9.0). Operating income included a non-recurring item of SEK -198m (-2,491) related to business area Europe, Asia-Pacific, Middle East and Africa, and the divestment of the water heater business in South Africa.
- Operating income excl. non-recurring items amounted to SEK 1,249m (-724), corresponding to a margin of 3.3% (-2.0). Higher volumes contributed positively to earnings and favorable mix offset negative price. The positive impact from cost efficiency was SEK 2.0bn. Currency headwinds had a significant negative impact.
- Operating margin excl. non-recurring items in business area Latin America was 8.0% (8.1). In business area Europe, Asia-Pacific, Middle East and Africa the operating margin excl. non-recurring items increased to 4.8% (1.9). Operating income improved in business area North America.
- In the fourth quarter, Electrolux Group divested all of its potential legacy asbestos exposure in the U.S. The transaction had a positive earnings impact of SEK 185m in business area North America in the quarter.
- Income for the period amounted to SEK 150m (-4,113) and earnings per share were SEK 0.56 (-15.23).
- Operating cash flow after investments was SEK 2,660m (3,871). Operating cash flow after investments for the full year was SEK 2,254m (3,064).
- The Board of Directors proposes that no payment of dividend will be made for 2024.
| SEKM | Q4 2024 | Q4 2023 | Change, % Full-year 2024 Full-year 2023 | Change, % | ||
|---|---|---|---|---|---|---|
| Net sales | 37,968 | 35,636 | 7 | 136,150 | 134,451 | 1 |
| Sales growth, %¹ | 11.2 | -0.8 | 5.0 | -4.3 | ||
| Organic growth, % | 11.5 | -0.8 | 5.1 | -4.0 | ||
| Divestments, % | -0.3 | - | -0.1 | -0.3 | ||
| Changes in exchange rates, % | -4.7 | 0.5 | -3.8 | 4.0 | ||
| Operating income² | 1,052 | -3,215 | n.m. | 1,100 | -2,988 | n.m. |
| Operating margin, % | 2.8 | -9.0 | 0.8 | -2.2 | ||
| Income after financial items | 662 | -3,785 | n.m. | -847 | -5,111 | 83 |
| Income for the period | 150 | -4,113 | n.m. | -1,394 | -5,227 | 73 |
| Earnings per share, SEK³ | 0.56 | -15.23 | n.m. | -5.16 | -19.36 | 73 |
| Return on net assets, % | - | - | 2.8 | -6.9 | ||
| Net debt/EBITDA | - | - | 3.4 | 3.9 | ||
| Operating cash flow after investments | 2,660 | 3,871 | 2,254 | 3,064 |
Financial overview
1 Changes in net sales adjusted for currency translation effects.
2 Operating income in the fourth quarter of 2024 included a previously announced non-recurring item of SEK -198m (-2,491) referring to business area Europe, Asia-Pacific, Middle East and Africa, and the divestment of the water heater business in South Africa. In the full year 2024, non-recurring items amounted to SEK -566m. (-3,401). Excluding non-recurring items, operating income in the full year 2024 amounted SEK 1,666m (414) corresponding to a margin of 1.2% (0.3), see page 21. 3 Basic.
For definitions, see pages 28-29. Note: n.m. (not meaningful) is used when the calculated number is considered not relevant.
President and CEO Yannick Fierling's comment
After having spent 3 months getting to know Electrolux Group and its stakeholders, I assumed the position as CEO on January 1, 2025. In the fourth quarter, we continued to make good progress on our cost reduction initiatives, and the Group's attractive product offering contributed to an organic growth of 11.5%. Operating margin excluding non-recurring items improved to 3.3% with an operating cash flow after investments of SEK 2.7bn.
Enhanced consumer experiences, agility and speed
Key takeaways from my initial time with Electrolux Group are the strength of our product offering and the clear identity of our brands Electrolux, AEG and Frigidaire. We really know our consumer, evidenced by the high online consumer star ratings for our products. It is essential to truly nurture the local strengths and what differentiates us in the market, while further leveraging our global scale to drive innovation and mix – all in a cost-efficient manner. In addition to offering great products that help consumers make more sustainable choices at home, we need to move even further to experiences, by expanding our customized solutions throughout the consumer journey.
Electrolux Group has a unique culture and legacy that is important to safeguard, while at the same time further increasing speed and agility. A key element of the Group's culture that I aim to support and develop is entrepreneurship. By promoting ownership and accountability, we can empower the entire team, enhance operational efficiency, and improve financial performance.
Sales growth and cost reductions drove earnings improvement
In the fourth quarter, operating income improved significantly supported by a SEK 2.0bn contribution from cost efficiency and organic growth of 11.5%.
Business area Europe, Asia-Pacific, Middle East and Africa reached an operating margin, excluding non-recurring items, of 4.8% (1.9) despite continued subdued discretionary consumer spending in Europe.
In North America good momentum from our new products and improved productivity contributed to an improvement in operating income. I am also very pleased that all of the Group's potential legacy asbestos exposure in the U.S. was divested in the fourth quarter. This transaction provides improved long-term financial visibility for our investors and frees up operational resources. In Latin America performance remained strong in the quarter with an operating margin of 8.0%.
For the Group, the seasonal pattern of our earnings has started to normalize, with the fourth quarter being the strongest during the year. With that in mind, the first quarter is normally weaker than the other quarters.
Demand mainly driven by replacements
The market in Europe continued to be replacement driven and was relatively stable in the fourth quarter, with high promotional intensity. The built-in kitchen market in Europe stabilized at a low level. Promotional activity was high in North America, but Black Friday promotions did not continue throughout December as they did the year before. Despite weak housing markets and with some quarterly volatility, the market increased slightly in 2024, supported by the aggressive pricing environment. The main markets in Latin America grew in the quarter although growth in Brazil slowed somewhat as
consumer demand started to accelerate in the fourth quarter 2023.
Outlook for 2025
Looking at 2025, there is an uncertainty stemming from potential impact on demand for home appliances from possible new trade policies in North America. In Europe demand has started to stabilize, but there is a time-lag before lower interest rates and potential improvements in disposable income support an increase in discretionary purchases. Following strong growth in Brazil during 2024 we expect market demand to stabilize in 2025.
On the back of this we expect market demand for core appliances to be relatively neutral in all regions in 2025 compared to 2024.
Organic earnings contribution from volume, price and mix combined for the Group is expected to be relatively neutral in full-year 2025. We anticipate that a high degree of demand will continue to be driven by replacement purchases, which are more price sensitive. Negative price is anticipated to be offset by growth in our focus categories such as premium laundry and kitchen products. Similar to 2024, investments in Innovation and marketing are projected to increase in full year 2025. The intent is to capitalize on the product and services leadership, supported by brand-building, to create value long term.
External factors are expected to be negative for the year, with significant headwinds from currencies. The impact from raw material costs is expected to be essentially neutral.
With reduced product cost across the value chain as the main driver, we anticipate SEK 3.5-4.0bn earnings contribution from cost efficiency in 2025.
Profitability and cash flow in focus
With a robust cash flow in the fourth quarter, a strong liquidity, and a well-balanced maturity profile, the Group's financial situation is stable. Improving earnings and cash flow are top priorities. In North America focus is to improve productivity and reduce cost further while continuing to support the strong product offering.
We will continue to develop and strengthen Electrolux Group for the years to come. Our attractive offering and strong brands together with effectively executed costreductions and a high-performing organizational set-up, position us well for the future.
Outlook
| FY 2025 | ||
|---|---|---|
| Neutral | ||
| Neutral | ||
| Neutral | ||
| FY 2025 | ||
| Neutral - negative price offset by growth in | ||
| focus categories | ||
| Negative, increased investments | ||
| Positive SEK 3.5-4.0bn | ||
| Negative | ||
| SEK 4-5bn | ||
¹ Electrolux estimates for industry shipments of core appliances. ² Business outlook range: Positive – Neutral – Negative, in terms of impact on earnings. 3 Asia-Pacific includes Australia, New Zealand and Southeast Asia. 4 Comprise costs of R&D, marketing/brand, connectivity, CRM, aftermarket sales capability etc. 5 Efficiencies in variable costs (excl. raw material, energy, trade tariffs and labor cost inflation >2%) and structural costs (excl. consumer experience innovation and marketing). 6 Comprise raw material costs, energy costs, trade tariffs, direct and indirect currency impact and labor cost inflation >2%. Note: Business outlook in the above table excludes non-recurring items. Market and business outlook assume no significant additional impact from the global geopolitical situation including trade policy measures (e.g. tariffs).
Summary of the fourth quarter
| SEKM | Q4 2024 | Q4 2023 | Change, % Full-year 2024 Full-year 2023 | Change, % | ||
|---|---|---|---|---|---|---|
| Net sales | 37,968 | 35,636 | 7 | 136,150 | 134,451 | 1 |
| Operating income | ||||||
| Europe, Asia-Pacific, Middle East and Africa | 617 | -1,805 | n.m. | 1,332 | -1,141 | n.m. |
| North America | 45 | -1,302 | n.m. | -1,776 | -2,341 | 24 |
| Latin America | 685 | 649 | 6 | 2,202 | 1,624 | 36 |
| Other, Group common costs, etc. | -296 | -757 | 61 | -658 | -1,129 | 42 |
| Total | 1,052 | -3,215 | n.m. | 1,100 | -2,988 | n.m. |
| Operating margin, % | 2.8 | -9.0 | 0.8 | -2.2 | ||
| Operating margin excl. non-recurring items, %¹ | 3.3 | -2.0 | 1.2 | 0.3 |
1 For information on non-recurring items, see page 21.
Note: n.m. (not meaningful) is used when the calculated number is considered not relevant.
Net sales
Sales increased by 11.2% in the quarter, excluding currency translation effects. Organic sales increased by 11.5% and the divestment of the water heater business in South Africa in December had a negative impact of 0.3%.
The organic growth was a result of higher volumes and favorable mix in all the Group's business areas. Growth was supported by the attractive product offering under the Electrolux, AEG and Frigidaire brands and a focus on growth in higher-value categories. Promotional activity was high, although in North America, Black Friday promotions did not continue throughout December as they did the year before. In Europe, demand was predominantly replacement driven. Organic growth was strong in Latin America, mainly driven by Brazil, supported by increased consumer demand. Aftermarket sales grew year-over-year.
Operating income
Operating income amounted to SEK 1,052m (-3,215), corresponding to a margin of 2.8% (-9.0). Operating income was impacted by SEK -198m (-2,491) related to a previously announced non-recurring item referring to business area Europe, Asia-Pacific, Middle East and Africa and the divestment of the water heater business in South Africa, see page 21. Excluding non-recurring items, operating income amounted to SEK 1,249m (-724), corresponding to a margin of
1 Operating income (EBIT) excluding non-recurring items, all numbers are rounded.
2 Currency related price increases in Argentina and Egypt moved to External factors.
3 Investments in consumer experience innovation and marketing.
For more information on definitions, see page 3 under Business Outlook.
3.3% (-2.0). The improvement was mainly driven by cost reduction activities with a positive effect from Cost efficiency of SEK 2.0bn year-over-year. The positive impact from higher sales volumes and mix more than offset negative price. In addition to the underlying earnings improvement in North America, the business area's operating profit of SEK 45m (-1,450) excluding non-recurring items, included a positive impact of SEK 185m from the divestment of all the Group's potential legacy asbestos exposure in the U.S., which impacted Cost efficiency positively. External factors had a negative effect on operating income, driven by significant currency headwinds in business areas Latin America and Europe, Asia-Pacific, Middle East and Africa. Lower raw material costs more than offset labor cost inflation. Investments in Innovation and marketing increased slightly to support the Group's strong product range.
Financial net
Net financial items amounted to SEK -390m (-570). The change was mainly a result of lower interest rates.
Income for the period
Income for the period amounted to SEK 150m (-4,113), corresponding to SEK 0.56 (-15.23) in earnings per share. In the fourth quarter 2023, income for the period was negatively impacted by a write-down related to U.S. tax credits of SEK 1,176m.
EBIT margin – 12 months is excluding non-recurring items, see page 21.
Full year 2024
Sales increased by 5.0% in the full year, excluding currency translation effects. Organic sales grew by 5.1%. Volumes increased and mix was favorable, supported by the attractive product offering. Price was negative due to lower market price levels and increased promotions. Divestments had a negative impact of -0.1%. Aftermarket sales increased slightly.
Operating income amounted to SEK 1,100m (-2,988), corresponding to a margin of 0.8% (-2.2). Operating income included a non-recurring item of SEK -566m (-3,401) related to the divestment of the water heater business in South Africa, see page 21. Excluding non-recurring items, operating income amounted to SEK 1,666m (414) corresponding to a margin of 1.2% (0.3). Cost reduction efforts contributed to a positive earnings effect from cost efficiency of SEK 4.0bn. The negative impact from price was partly offset by higher volumes and a favorable mix. Investments in innovation and marketing increased to support the Group's strong product portfolio and long-term profitable growth. The impact from External factors was slightly negative, driven by currency headwinds and labor cost inflation, while lower raw material costs contributed positively.
Net financial items amounted to SEK -1,947m (-2,123).
Income for the period amounted to SEK -1,394m (-5,227), corresponding to SEK -5.16 (-19.36) in earnings per share.
Market overview
In the fourth quarter, overall market demand in Europe increased slightly year-over-year. Consumer confidence improved during 2024, however was still at a relatively low level, negatively impacted by the cumulative effects of inflationary pressure, high interest rates, and geopolitical tensions. In the U.S., overall market demand for core appliances increased in terms of units, year-over-year, with good traction from promotional activity. For more information about the markets, please see the Business areas section.
*Units year-over-year, %.
Sources: Europe: Electrolux estimate, excluding Russia. US: AHAM. For definitions see below. For other markets, there are no comprehensive market statistics.
Industry shipment of appliances
| Europe, units, year-over-year,%* | Q4 2024 | Q4 2023 Full-year 2024 Full-year 2023 | ||
|---|---|---|---|---|
| Western Europe | 1 | -5 | -2 | -9 |
| Eastern Europe | 1 | -2 | 1 | -9 |
| Total Europe | 1 | -4 | -1 | -9 |
*Source: Electrolux estimates for core appliances. Europe and Eastern Europe exclude Turkey and Russia. Core appliances include: Refrigerators, Freezers, Washing machines, Tumble dryers, Free-standing Cookers, Built-in Ovens, Built-in Hobs, Hoods and Dishwashers. Electrolux estimates are subject to restatement.
| U.S., units, year-over-year, %* | Q4 2024 | Q4 2023 Full-year 2024 Full-year 2023 | ||
|---|---|---|---|---|
| Core appliances | 7 | 2 | 2 | 2 |
*Source: Based on the AHAM Factory Shipment Report. Q4 2024 is a comparison of weeks between September 29, 2024 – December 31, 2024, vs October 1, 2023 December 31, 2023. Core appliances include AHAM 6 (Washers, Dryers, Dishwashers, Refrigerators, Freezers, Ranges and Ovens) and Cooktops. AHAM data is subject to restatement.
Business areas
Europe, Asia-Pacific, Middle East and Africa
- Electrolux Group outperformed the market in Europe
- Significant improvement in operating income
- Good execution on cost reduction measures
During the quarter, market demand in Europe increased by 1% year-over-year with an increase of 1% in both Western Europe and Eastern Europe. Compared to the fourth quarter of 2019, demand in Europe decreased by 10%, a similar decline as seen in recent quarters compared to 2019. In Asia-Pacific, consumer demand is estimated to have increased year-over-year. In Europe, consumer confidence improved in 2024, however was still at a relatively low level, negatively impacted by the cumulative effects of inflationary pressure, high interest rates, and geopolitical tensions. Subdued purchasing power continued to result in consumers shifting to lower price points and postponing purchases in discretionary categories. Weak residential construction and remodeling activity has had a dampening effect on demand within the European built-in kitchen category, which has flattened out on a low level. Promotional activity increased year-over-year across the region, as a high share of volume is replacement driven.
The business area reported an organic sales increase of 3.3%. Outperforming the market, volume increased and mix improved, mainly through the clear focus on premium brands and higher-value product categories. Predominantly replacement driven demand contributed to increased promotions and negative price year-over-year.
Operating income included a negative non-recurring item of SEK -198m, related to the divestment of the water heater business in South Africa, see page 21.
Operating income excluding non-recurring items increased significantly year-over-year to SEK 815m. Cost reduction activities contributed to a positive earnings effect from cost efficiency. Volume growth and favorable mix, supported by the attractive product offering, partly offset the effect from negative price. Material negative currency effects along with labor cost inflation had a negative impact on earnings, partly mitigated by lower raw material cost. Investments increased in innovation and marketing to support the strong product portfolio.
EBIT margin – 12 months is excluding non-recurring items, see pages 21 and 27.
| SEKM | Q4 2024 | Q4 2023 Full-year 2024 Full-year 2023 | ||
|---|---|---|---|---|
| Net sales | 16,892 | 16,586 | 59,795 | 60,458 |
| Organic growth, % | 3.3 | -3.1 | 0.4 | -8.0 |
| Divestments, % | -0.6 | - | -0.2 | -0.7 |
| Operating income | 617 | -1,805 | 1,332 | -1,141 |
| Operating margin,% | 3.7 | -10.9 | 2.2 | -1.9 |
| Operating income excl. non-recurring items | 815 | 313 | 1,898 | 1,887 |
| Operating margin excl. non-recurring items, %¹ | 4.8 | 1.9 | 3.2 | 3.1 |
1 For non-recurring items, see page 21.
North America
- Electrolux Group outpaced market demand
- Organic sales growth driven by higher volumes
- Improvement in operating income
During the quarter market demand for core appliances in terms of units increased by 7% year-over-year, with good traction from promotional activity. Black Friday promotions did not continue throughout December as they did the year before. During 2024 market price levels were largely unchanged at the lower levels established after an extended Black Friday period in 2023. The lower market prices have been enabled by input cost discrepancies in recent years between North America and certain parts of Asia, particularly in refrigeration. The cumulative effects of high inflationary pressure and high interest rates continued to negatively impact consumer sentiment, with demand remaining resilient but with consumers shifting to lower price points.
The business area reported an organic sales increase of 17.0% driven by higher volumes and compared to a significant decline in the fourth quarter 2023. Outperforming the market, volume growth was supported by the attractive product offering. By the end of the year, output from the new cooking plant in Springfield met demand without material overtime. In the fourth quarter 2023, production constraints had a slight negative impact on product availability. Mix was favorable, driven by the continued focus on growth in high-value categories. Price was slightly positive compared to the severely pressured level and extended promotional period in the fourth quarter 2023.
The business area reported an operating profit of SEK 45m, excluding non-recurring items. In the quarter, Electrolux Group divested all of its potential legacy asbestos exposure in the U.S., by selling the subsidiaries in the U.S that hold these liabilities and related insurance assets. The transaction had a positive earnings impact of SEK 185m in business area North America in the quarter. The underlying earnings improvement was mainly driven by cost savings and improved productivity. Higher organic sales contributed positively to earnings. The impact from external factors was slightly positive.
EBIT margin – 12 months is excluding non-recurring items, see pages 21 and 27.
| SEKM | Q4 2024 | Q4 2023 Full-year 2024 Full-year 2023 | ||
|---|---|---|---|---|
| Net sales | 12,468 | 10,434 | 45,581 | 45,072 |
| Organic growth, % | 17.0 | -14.5 | 1.7 | -8.4 |
| Operating income | 45 | -1,302 | -1,776 | -2,341 |
| Operating margin,% | 0.4 | -12.5 | -3.9 | -5.2 |
| Operating income excl. non-recurring items | 45 | -1,450 | -1,776 | -2,489 |
| Operating margin excl. non-recurring items, %¹ | 0.4 | -13.9 | -3.9 | -5.5 |
1 For information on non-recurring items, see page 21.
Latin America
- Increased consumer demand
- Strong organic growth driven mainly by Brazil
- Operating margin of 8% despite significant currency headwinds
During the quarter consumer demand for core appliances is estimated to have increased in the region. In Brazil, favorable economic conditions continued to support demand, although growth slowed slightly compared to recent quarters. In Argentina and Chile, consumer demand is estimated to have increased in the fourth quarter.
The business area reported an organic sales increase of 21.8%, mainly driven by higher volumes and positive mix. This was primarily driven by Brazil, and a strong Black Friday. Price was slightly positive year-over-year, supported by price increases to compensate for currency driven cost inflation. Aftermarket sales continued to develop strongly.
Operating income excluding non-recurring items amounted to SEK 685m (700). The positive earnings effects from organic sales growth and cost efficiency were offset by negative currency effects, with a significant adverse impact from the weakening of the Brazilian Real, and increased investments in brand building activities and supporting consumer direct sales.
EBIT margin – 12 months is excluding non-recurring items, see pages 21 and 27.
| SEKM | Q4 2024 | Q4 2023 Full-year 2024 Full-year 2023 | ||
|---|---|---|---|---|
| Net sales | 8,608 | 8,616 | 30,775 | 28,920 |
| Organic growth, % | 21.8 | 29.4 | 22.3 | 15.2 |
| Operating income | 685 | 649 | 2,202 | 1,624 |
| Operating margin, % | 8.0 | 7.5 | 7.2 | 5.6 |
| Operating income excl. non-recurring items | 685 | 700 | 2,202 | 1,675 |
| Operating margin excl. non-recurring items, %¹ | 8.0 | 8.1 | 7.2 | 5.8 |
1 For information on non-recurring items, see page 21.
Cash flow
Operating cash flow after investments amounted to SEK 2,660m (3,871) in the quarter, reflecting a normal fourth quarter seasonal inflow from working capital. In the fourth quarter 2023 a higher-than-normal reduction of inventories, after the build-up during the pandemic, coupled with a positive impact of SEK 0.4bn from the divestment of the factory in Memphis, U.S., impacted cashflow positively.
Operating cash flow after investments for the full year 2024 amounted to SEK 2,254m (3,064). The year-over-year comparison reflects an improvement in operating income and a lower level of investments in 2024. Operating cash flow in full year 2023 benefited from the reduction of inventories after the build-up during the pandemic.
2023 2024
| SEKM | Q4 2024 | Q4 2023 Full-year 2024 Full-year 2023 | ||
|---|---|---|---|---|
| Operating income adjusted for non-cash items¹ | 2,725 | 962 | 7,967 | 6,825 |
| Change in operating assets and liabilities | 1,559 | 4,202 | -465 | 597 |
| Operating cash flow | 4,283 | 5,164 | 7,502 | 7,422 |
| Investments in tangible and intangible assets | -1,604 | -1,999 | -4,647 | -5,699 |
| Changes in other investments | -19 | 706 | -601 | 1,341 |
| Operating cash flow after investments | 2,660 | 3,871 | 2,254 | 3,064 |
| Acquisitions and divestments of operations | 972 | - | 972 | - |
| Operating cash flow after structural changes | 3,632 | 3,871 | 3,226 | 3,064 |
| Financial items paid, net² | -625 | -819 | -1,764 | -2,039 |
| Taxes paid | -418 | -485 | -1,541 | -1,380 |
| Cash flow from operations and investments | 2,589 | 2,567 | -79 | -355 |
| Payment of lease liabilities | -318 | -305 | -1,157 | -1,111 |
| Dividend | - | - | - | - |
| Share-based payments | - | - | 26 | 17 |
| Total cash flow, excluding changes in loans and short–term investments | 2,271 | 2,262 | -1,210 | -1,449 |
¹ Operating income adjusted for depreciation, amortization and other non-cash items.
² For the period January 1 to December 31: interest and similar items received SEK 520m (392), interest and similar items paid SEK -2,029m (-2,349) and other financial items received/paid SEK -255m (-82).
Financial position
Net debt
As of December 31, 2024, Electrolux had a financial net debt (excluding lease liabilities and post-employment provisions) of SEK 22,706m, compared to the financial net debt of SEK 20,871m as of December 31, 2023. Net provisions for postemployment benefits amounted to a deficit of SEK 336m and lease liabilities amounted to SEK 4,812m as of December 31, 2024. In total, net debt amounted to SEK 27,853m, an increase of SEK 1,627m compared to SEK 26,226m per December 31, 2023.
Long-term borrowings and long-term borrowings with maturities within 12 months amounted to a total of SEK 36,601m as of December 31, 2024, with an average maturity of 3.3 years, compared to SEK 33,276m and 3.5 years at the end of 2023. In the fourth quarter, amortization of long-term borrowings amounted to SEK 3,577m and a total of SEK 1,673m of new long-term debt was issued. In November, Electrolux fully utilized the sustainability-linked loan facility with the Nordic Investment Bank, signed in June, borrowing USD 150m. In December Electrolux signed a EUR 200m loan facility with the European Investment Bank. During 2025, longterm borrowings amounting to approximately SEK 4,930m, will mature. For more information see www.electroluxgroup.com.
Liquid funds as of December 31, 2024, amounted to SEK 16,592m, an increase of SEK 923m compared to SEK 15,669m as of December 31, 2023. Total liquidity, including the revolving credit facilities, amounted to SEK 34,079m compared to SEK 32,765m as of December 31, 2023.
Net debt/EBITDA was 3.4 (3.9) and return on equity was -13.6% (-33.7).
Working capital and net assets
Working capital as of December 31, 2024, amounted to SEK -17,102m (-16,925), corresponding to -12.6% (-13.2) of annualized net sales. Operating working capital amounted to SEK 4,853m (5,809), corresponding to 3.6% (4.5) of annualized net sales, see page 23.
Average net assets for the full year 2024, amounted to SEK 38,936m (43,401), corresponding to 28.6% (32.3) of annualized net sales. Net assets as of December 31, 2024, amounted to SEK 37,420m (37,500).
Return on net assets was 2.8% (-6.9).
| Net debt |
|---|
| SEKM | Dec. 31, 2024 | Dec. 31, 2023 |
|---|---|---|
| Short-term loans | 2,172 | 2,864 |
| Short-term part of long-term loans | 4,803 | 4,476 |
| Trade receivables with recourse | 43 | 48 |
| Short-term borrowings | 7,018 | 7,388 |
| Financial derivative liabilities | 150 | 253 |
| Accrued interest expenses and prepaid interest income | 332 | 285 |
| Total short-term borrowings | 7,500 | 7,925 |
| Long-term borrowings | 31,798 | 28,800 |
| Total borrowings¹ | 39,298 | 36,725 |
| Long-term financial receivables | - | 185 |
| Cash and cash equivalents | 16,171 | 15,331 |
| Short-term investments | 168 | 167 |
| Financial derivative assets | 239 | 155 |
| Prepaid interest expenses and accrued interest income | 14 | 17 |
| Liquid funds² | 16,592 | 15,669 |
| Financial net debt | 22,706 | 20,871 |
| Lease liabilities | 4,812 | 4,685 |
| Net provisions for post-employment benefits | 336 | 670 |
| Net debt | 27,853 | 26,226 |
| Net debt/EBITDA | 3.4 | 3.9 |
| Net debt/equity ratio | 2.86 | 2.33 |
| Total equity | 9,723 | 11,274 |
| Equity per share, SEK | 36.01 | 41.75 |
| Return on equity, % | -13.6 | -33.7 |
| Equity/assets ratio, % | 8.9 | 10.8 |
1 Whereof interest-bearing liabilities amounting to SEK 38,773m as of December 31, 2024, and SEK 36,140m as of December 31, 2023.
2 Electrolux also has an unused committed multicurrency revolving credit facility of EUR 1,000m, approximately SEK 11,500m, maturing 2028, a revolving credit facility of SEK 3,000m, maturing 2026, and a revolving credit facility of SEK 3,000m, maturing 2026.
Risks and uncertainty factors
Active risk management is essential for Electrolux to drive successful operations. The Group is impacted by various types of risks including strategic and external risks, such as geopolitical risks including trade policy measures (e.g. tariffs), but also business risks such as operational and financial risks. Risk management in Electrolux aims to identify, control and reduce risks. Risks, risk management and risk exposure are described in more detail in the 2023 Annual Report: www.electroluxgroup.com/annualreport2023
Sustainable consumer experience innovation
Innovation to improve the consumer experience in the Taste, Care & Wellbeing areas is a key driver for long-term profitable growth. Electrolux Group's innovative product portfolio, with a strong sustainability focus, enables consumers to live better lives while often also saving energy, water and other resources. The product portfolio as well as the Group's well-established brands with a strong innovation heritage are competitive assets, enabling the company to also strengthen its position in emerging markets and within aftermarket.
Deep consumer insight is a competitive advantage in an age of greater consumer awareness. Consumers increasingly prioritize sustainability; research shows that nearly 75% of consumers globally think it is more important than before the pandemic for companies to behave more sustainably1 and nearly 60% of affluent Americans are willing to pay more for products that are environmentally friendly2 . Electrolux Group's most resource-efficient products have consistently had a higher margin for many years and in 2024 these products accounted for 24% of total units sold and 33% of gross profit.
Electrolux strengthens offering in North America with new high-performance, energy-efficient laundry pair
With the focus on driving sales in higher-value categories, Electrolux Group is further strengthening its offering in the attractive market for front-load washers in North America. The new Electrolux series 700 front load washer and dryer pair features a range of innovations to enable high-performance cleaning with less environmental impact.
In 2024, Electrolux Group outperformed the US market for front-load washers, a segment that has outpaced other laundry product categories in terms of market growth in recent years.
Sustainability is a key business driver for Electrolux Group and a differentiator for its brands. The new 700 series is an evolution of its highly rated predecessor, the Electrolux 600, and equipped with even more features to help consumers make more sustainable choices in their homes. As approximately 85% of an appliance's total climate footprint occurs in the use phase, the most important contribution by Electrolux Group to tackle climate change is to make increasingly energy efficient products and inspire consumers to use them in ways that can reduce the use of resources.
Optimized for cold with same high cleaning performance Washing temperature has a significant impact on energy costs, carbon emissions and clothing longevity. The new Electrolux washing machine offers optimal cleaning and stain removal even on cold cycle, without sacrificing cleaning performance. Therefore, temperature settings have been reordered with cold now listed first, rather than at or near the bottom, as has been the industry standard. A cold sanitize option allows users to pair a cold-water wash and Lysol® Laundry Sanitizer that kills 99.9%3 of odor-causing bacteria in laundry, leaving clothes smelling fresh. The machine also features Tide Cold Certified, with an adaptive PODS® dispenser and SmartBoost™ technology, to deliver the most effective stain removal and extend the life of clothes.
give users the opportunity to choose cycle settings that consume the least amount of resources. For example, the Wear it AgainTM cycle is specifically designed to refresh lightly worn or wrinkled clothing. In just 15 minutes, the combination of steam, tumble and heat removes pet hair, reduces odors and reduces wrinkles.
ENERGY STAR® certified models continue to increase
Since 2021, Electrolux Group has increased the number of ENERGY STAR® certified models by 75% in its major appliances offering in North America. The new Electrolux series 700 washing machine boasts the ENERGY STAR® Most Efficient mark for 2024 and 2025 with the lowest energy consumption of any standard-size washer currently available on the U.S. market4.
- 1 Global WebIndex (GWI) (2020). Coronavirus research. Survey in 20 countries.
- 2 Ipsos (2022). Who are the affluent environmentalists? An Ipsos point of View 3 When used as directed.
4 According to the U.S. Department of Energy Compliance Certification Database and Natural Resources Canada Energy Efficiency Ratings Database, August 2024 for standard size washing machines currently on the market.
Find more inspiring business cases on how Electrolux Group puts its profitable
www.electroluxgroup.com/ir/create-value
In addition, a new care meter provides a visual indicator to
Events during the quarter Events after the quarter
December 19. French antitrust proceedings concluded
The French Competition Authority (FCA) has completed the previously communicated second investigation regarding alleged breaches of antitrust rules in France by Electrolux Group and various other parties within the home appliance sector during 2009 to 2014.
The FCA has decided on a fine of EUR 44.5m, which is covered by the provision set by Electrolux Group and reported as a non-recurring item in the second quarter of 2023. This decision follows a settlement that was reached in 2023 between the FCA and Electrolux Group.
January 28. President and CEO Yannick Fierling proposed as new Board member of AB Electrolux
The Nomination Committee of AB Electrolux proposes election of Yannick Fierling, the new President and CEO of AB Electrolux, as new member of the Board of Directors of AB Electrolux at its Annual General Meeting on March 26, 2025. The Committee also proposes re-election of Torbjörn Lööf (Chair), Geert Follens, Petra Hedengran, Ulla Litzén, Daniel Nodhäll, Karin Overbeck, David Porter and Michael Rauterkus.
As previously communicated, Yannick Fierling has succeeded Jonas Samuelson as President and CEO of AB Electrolux on January 1, 2025. As Jonas Samuelson also has resigned from the Board, Yannick Fierling is accordingly proposed as a new Board member.
The Nomination Committee's proposal means that the Board of Directors shall comprise nine ordinary members elected by the Annual General Meeting, without deputies.
The Nomination Committee's motivated statement, complete proposals, and a presentation of the proposed Board members will be published in due time before the Annual General Meeting 2025.
The Nomination Committee of AB Electrolux comprises Christian Cederholm, Investor AB (Chair), Marianne Nilsson, Swedbank Robur Funds, Anders Hansson, AMF Tjänstepension och Fonder, and Carina Silberg, Alecta. The Nomination Committee also includes Torbjörn Lööf, Chair of the Board of AB Electrolux.
For more information, visit www.electroluxgroup.com
Annual General Meeting 2025
AB Electrolux Annual General Meeting will be held on March 26, 2025, at 4.00 p.m. at Bio Skandia,
Drottninggatan 82, Stockholm, Sweden.
Additional information about the Annual General Meeting will be published in the notice convening the Annual General Meeting.
Proposed dividend
According to the company's dividend policy, AB Electrolux target is for the dividend to correspond to approximately 50% of the annual income. As the annual income for 2024 was negative, the Board of Directors proposes that no payment of dividend will be made for the fiscal year 2024.
Nomination Committee
The Nomination Committee of AB Electrolux comprises Christian Cederholm, Investor AB, Chair of the committee. The other members are Marianne Nilsson, Swedbank Robur Funds, Anders Hansson, AMF Tjänstepension och Fonder and Carina Silberg, Alecta. The committee also includes Torbjörn Lööf, Chair of AB Electrolux Board.
The Nomination Committee prepares proposals for the Annual General Meeting in 2025 regarding the Chair of the Annual General Meeting, Board members, Chair of the Board, remuneration for Board members, Auditor, Auditor's fees and, to the extent deemed necessary, a proposal regarding amendments of the current instruction for the Nomination Committee.
Proposals from the Nomination Committee regarding the Chairman of the Board and Board members are presented on page 13. The Nomination Committee's complete proposals will be published in due time before the Annual General Meeting 2025.
For more information, visit www.electroluxgroup.com
Parent Company AB Electrolux
The Parent Company comprises the functions of the Group's head office, as well as five companies operating on a commission basis for AB Electrolux.
Net sales for the Parent Company, AB Electrolux, for the full year 2024 amounted to SEK 40,272m (40,302) of which SEK 33,947m (33,292) referred to sales to Group companies and SEK 6,325m (7,010) to external customers. Income after financial items was SEK 740m (-4,822), including dividends from subsidiaries in the amount of SEK 4,798m (730). Income for the period amounted to SEK 1,053m (-3,726).
Capital expenditure in tangible and intangible assets was SEK 731m (1,053). Liquid funds at the end of the period amounted to SEK 11,534m, compared to SEK 9,969m at the start of the year.
Undistributed earnings in the Parent Company at the end of the period amounted to SEK 6,653m, compared to SEK 5,735m at the start of the year. Dividend payment to shareholders for 2023 amounted to SEK 0m.
The income statement and balance sheet for the Parent Company are presented on page 24.
Stockholm, January 30, 2025
AB Electrolux (publ) 556009-4178
Board of Directors
The report has not been audited by external auditors.
Consolidated statement of comprehensive income
| SEKM | Q4 2024 | Q4 2023 Full-year 2024 Full-year 2023 | ||
|---|---|---|---|---|
| Net sales | 37,968 | 35,636 | 136,150 | 134,451 |
| Cost of goods sold | -31,974 | -32,597 | -115,851 | -117,316 |
| Gross operating income | 5,994 | 3,040 | 20,299 | 17,135 |
| Selling expenses | -3,536 | -3,690 | -13,618 | -13,362 |
| Administrative expenses | -1,792 | -2,808 | -6,043 | -6,977 |
| Other operating income/expenses | 385 | 244 | 462 | 217 |
| Operating income | 1,052 | -3,215 | 1,100 | -2,988 |
| Financial items, net | -390 | -570 | -1,947 | -2,123 |
| Income after financial items | 662 | -3,785 | -847 | -5,111 |
| Taxes | -512 | -328 | -547 | -116 |
| Income for the period | 150 | -4,113 | -1,394 | -5,227 |
| Items that will not be reclassified to income for the period: | ||||
| Remeasurement of provisions for post-employment benefits | 367 | -91 | 611 | 304 |
| Income tax relating to items that will not be reclassified | -105 | 42 | -177 | -57 |
| 261 | -49 | 434 | 246 | |
| Items that may be reclassified subsequently to income for the period: | ||||
| Cash flow hedges | 11 | -0 | -7 | -35 |
| Exchange-rate differences on translation of foreign | ||||
| operations | 370 | -1,276 | -606 | -301 |
| Income tax relating to items that may be reclassified | - | 7 | -0 | 22 |
| 381 | -1,270 | -613 | -314 | |
| Other comprehensive income, net of tax | 642 | -1,319 | -179 | -68 |
| Total comprehensive income for the period | 792 | -5,432 | -1,573 | -5,295 |
| Income for the period attributable to: | ||||
| Equity holders of the Parent Company | 150 | -4,113 | -1,394 | -5,227 |
| Non-controlling interests | 0 | -0 | 0 | -0 |
| Total | 150 | -4,113 | -1,394 | -5,227 |
| Total comprehensive income for the period attributable to: | ||||
| Equity holders of the Parent Company | 793 | -5,432 | -1,573 | -5,295 |
| Non-controlling interest | -0 | -0 | -0 | -0 |
| Total | 792 | -5,432 | -1,573 | -5,295 |
| Earnings per share, SEK | ||||
| Basic | 0.56 | -15.23 | -5.16 | -19.36 |
| Diluted | 0.55 | -15.23 | -5.16 | -19.36 |
| Average number of shares¹ | ||||
| Basic, million | 270.0 | 270.0 | 270.0 | 270.0 |
| Diluted, million | 273.0 | 273.0 | 272.3 | 272.7 |
¹ Average numbers of shares excluding shares held by Electrolux.
Consolidated balance sheet
| SEKM | Dec. 31, 2024 | Dec. 31, 2023 |
|---|---|---|
| Assets | ||
| Property, plant and equipment, owned | 28,777 | 28,730 |
| Property, plant and equipment, right-of-use | 4,382 | 4,337 |
| Goodwill | 5,393 | 6,579 |
| Other intangible assets | 5,262 | 5,377 |
| Investments in associates | 0 | 21 |
| Deferred tax assets | 9,065 | 8,268 |
| Financial assets | 69 | 263 |
| Pension plan assets | 1,634 | 1,514 |
| Other non-current assets | 2,223 | 1,610 |
| Total non-current assets | 56,805 | 56,699 |
| Inventories | 21,271 | 19,965 |
| Trade receivables | 24,590 | 22,247 |
| Tax assets | 1,328 | 1,180 |
| Derivatives | 407 | 167 |
| Other current assets | 4,646 | 4,297 |
| Short-term investments | 168 | 167 |
| Cash and cash equivalents | 16,171 | 15,331 |
| Total current assets | 68,583 | 63,354 |
| Total assets | 125,388 | 120,053 |
| Equity and liabilities | ||
| Equity attributable to equity holders of the Parent Company | ||
| Share capital | 1,545 | 1,545 |
| Other paid-in capital | 2,905 | 2,905 |
| Other reserves | -1,578 | -966 |
| Retained earnings | 6,846 | 7,784 |
| Equity attributable to equity holders of the Parent Company | 9,718 | 11,268 |
| Non-controlling interests | 5 | 6 |
| Total equity | 9,723 | 11,274 |
| Long-term borrowings | 31,798 | 28,800 |
| Long-term lease liabilities | 3,496 | 3,494 |
| Deferred tax liabilities | 651 | 574 |
| Provisions for post-employment benefits | 1,970 | 2,184 |
| Other long-term provisions | 3,968 | 4,785 |
| Total non-current liabilities | 41,881 | 39,839 |
| Accounts payable | 41,009 | 36,402 |
| Tax liabilities | 1,589 | 1,657 |
| Other short-term liabilities | 18,268 | 15,989 |
| Short-term borrowings | 7,018 | 7,388 |
| Short-term lease liabilities | 1,316 | 1,191 |
| Derivatives | 186 | 368 |
| Other short-term provisions | 4,397 | 5,944 |
| Total current liabilities | 73,784 | 68,940 |
| Total equity and liabilities | 125,388 | 120,053 |
Change in consolidated equity
| SEKM | Full-year 2024 | Full year 2023 |
|---|---|---|
| Opening balance | 11,274 | 16,449 |
| Change in accounting principle | -117 | - |
| Total comprehensive income for the period | -1,573 | -5,295 |
| Share-based payments | 140 | 120 |
| Dividend to equity holders of the Parent Company | - | - |
| Dividend to non-controlling interests | -0 | -0 |
| Change in non-controlling interest | -1 | 0 |
| Total transactions with equity holders | 139 | 120 |
| Closing balance | 9,723 | 11,274 |
Consolidated cash flow statement
| SEKM | Q4 2024 | Q4 2023 Full-year 2024 Full-year 2023 | ||
|---|---|---|---|---|
| Operations | ||||
| Operating income | 1,052 | -3,215 | 1,100 | -2,988 |
| Depreciation and amortization | 1,641 | 1,600 | 6,420 | 6,277 |
| Other non-cash items | 32 | 2,577 | 447 | 3,535 |
| Financial items paid, net¹ | -625 | -819 | -1,764 | -2,039 |
| Taxes paid | -418 | -485 | -1,541 | -1,380 |
| Cash flow from operations, excluding change in operating assets and | ||||
| liabilities | 1,681 | -342 | 4,662 | 3,406 |
| Change in operating assets and liabilities | ||||
| Change in inventories | 1,778 | 2,595 | -1,165 | 3,459 |
| Change in trade receivables | -1,943 | -1,041 | -2,828 | -1,543 |
| Change in accounts payable | 2,328 | 1,585 | 3,922 | -1,108 |
| Change in other operating assets, liabilities and provisions | -604 | 1,063 | -394 | -211 |
| Cash flow from change in operating assets and liabilities | 1,559 | 4,202 | -465 | 597 |
| Cash flow from operations | 3,240 | 3,859 | 4,197 | 4,003 |
| Investments | ||||
| Divestment of operations | 972 | - | 972 | - |
| Capital expenditure in property, plant and equipment | -1,339 | -1,571 | -3,450 | -4,069 |
| Capital expenditure in product development | -131 | -98 | -519 | -602 |
| Capital expenditure in software and other intangibles | -134 | -330 | -679 | -1,028 |
| Other | -19 | 706 | -601 | 1,341 |
| Cash flow from investments | -651 | -1,292 | -4,277 | -4,358 |
| Cash flow from operations and investments | 2,589 | 2,567 | -79 | -355 |
| Financing | ||||
| Change in short-term investments | -2 | 3 | -1 | 1 |
| Change in short-term borrowings | -416 | -2,792 | 212 | -2,527 |
| New long-term borrowings | 1,673 | - | 7,185 | 4,691 |
| Amortization of long-term borrowings | -3,577 | -73 | -5,000 | -2,622 |
| Payment of lease liabilities | -318 | -305 | -1,157 | -1,111 |
| Dividend | - | - | - | - |
| Share-based payments | - | - | 26 | 17 |
| Cash flow from financing | -2,639 | -3,166 | 1,266 | -1,550 |
| Total cash flow | -51 | -599 | 1,187 | -1,905 |
| Cash and cash equivalents at beginning of period | 16,184 | 16,296 | 15,331 | 17,559 |
| Exchange-rate differences referring to cash and cash equivalents | 38 | -366 | -346 | -323 |
| Cash and cash equivalents at end of period | 16,171 | 15,331 | 16,171 | 15,331 |
1 For the period January 1 to December 31: interest and similar items received SEK 520m (392), interest and similar items paid SEK -2,029m (-2,349) and other financial items received/paid SEK -255m (-82).
Key ratios
| SEKM unless otherwise stated | Q4 2024 | Q4 2023 Full-year 2024 Full-year 2023 | ||
|---|---|---|---|---|
| Net sales | 37,968 | 35,636 | 136,150 | 134,451 |
| Organic growth, % | 11.5 | -0.8 | 5.1 | -4.0 |
| EBITA | 1,413 | -2,894 | 2,404 | -1,819 |
| EBITA margin, % | 3.7 | -8.1 | 1.8 | -1.4 |
| Operating income | 1,052 | -3,215 | 1,100 | -2,988 |
| Operating margin, % | 2.8 | -9.0 | 0.8 | -2.2 |
| Operating margin excl. non-recurring items, %¹ | 3.3 | -2.0 | 1.2 | 0.3 |
| Income after financial items | 662 | -3,785 | -847 | -5,111 |
| Income for the period | 150 | -4,113 | -1,394 | -5,227 |
| Capital expenditure property, plant and equipment | -1,339 | -1,571 | -3,450 | -4,069 |
| Operating cash flow after investments | 2,660 | 3,871 | 2,254 | 3,064 |
| Earnings per share, SEK² | 0.56 | -15.23 | -5.16 | -19.36 |
| Equity per share, SEK | 36.01 | 41.75 | 36.01 | 41.75 |
| Capital turnover rate, times/year | - | - | 3.5 | 3.1 |
| Return on net assets, % | - | - | 2.8 | -6.9 |
| Return on equity, % | - | - | -13.6 | -33.7 |
| Net debt | 27,853 | 26,226 | 27,853 | 26,226 |
| Net debt/EBITDA | - | - | 3.4 | 3.9 |
| Net debt/equity ratio | 2.86 | 2.33 | 2.86 | 2.33 |
| Average number of employees | 39,693 | 43,887 | 40,787 | 45,452 |
| Average number of shares excluding shares owned by Electrolux, million | 270.0 | 270.0 | 270.0 | 270.0 |
¹ The full year of 2023 and the full year 2024 include non-recurring items respectively. For more information regarding non-recurring items in previous years, see page 27.
2 Basic. For definitions, see pages 28-29.
Exchange rates
| SEK | Dec. 31, 2024 | Dec. 31, 2023 | |||
|---|---|---|---|---|---|
| Exchange rate | Average | End of period | Average | End of period | |
| ARS | 0.0116 | 0.0107 | 0.0404 | 0.0124 | |
| AUD | 6.96 | 6.86 | 7.03 | 6.82 | |
| BRL | 1.95 | 1.78 | 2.12 | 2.07 | |
| CAD | 7.71 | 7.64 | 7.85 | 7.58 | |
| CHF | 12.01 | 12.17 | 11.78 | 11.98 | |
| CLP | 0.0112 | 0.0110 | 0.0126 | 0.0114 | |
| CNY | 1.47 | 1.51 | 1.50 | 1.41 | |
| EUR | 11.42 | 11.49 | 11.46 | 11.10 | |
| GBP | 13.49 | 13.85 | 13.17 | 12.77 | |
| HUF | 0.0289 | 0.0279 | 0.0300 | 0.0290 | |
| MXN | 0.5776 | 0.5397 | 0.5978 | 0.5926 | |
| THB | 0.3007 | 0.3223 | 0.3044 | 0.2922 | |
| USD | 10.55 | 11.00 | 10.59 | 10.04 |
Net sales and operating income by business area
| SEKM | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Full year 2024 |
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Full year 2023 |
|---|---|---|---|---|---|---|---|---|---|---|
| Europe, Asia-Pacific, Middle East and | ||||||||||
| Africa | ||||||||||
| Net sales | 14,359 | 14,181 | 14,363 | 16,892 | 59,795 | 15,035 | 14,500 | 14,338 | 16,586 | 60,458 |
| Sales growth, % | -3.9 | -0.4 | 2.9 | 2.7 | 0.3 | -7.2 | -11.8 | -12.9 | -3.1 | -8.6 |
| EBITA | 369 | 376 | 386 | 779 | 1,909 | 205 | -12 | 871 | -1,663 | -600 |
| EBITA margin, % | 2.6 | 2.7 | 2.7 | 4.6 | 3.2 | 1.4 | -0.1 | 6.1 | -10.0 | -1.0 |
| Operating income | 238 | 235 | 242 | 617 | 1,332 | 82 | -146 | 728 | -1,805 | -1,141 |
| Operating margin, % | 1.7 | 1.7 | 1.7 | 3.7 | 2.2 | 0.5 | -1.0 | 5.1 | -10.9 | -1.9 |
| North America | ||||||||||
| Net sales | 9,950 | 11,728 | 11,434 | 12,468 | 45,581 | 11,504 | 11,238 | 11,896 | 10,434 | 45,072 |
| Sales growth, % | -13.0 | 4.7 | -0.3 | 17.0 | 1.7 | 4.0 | -12.3 | -9.6 | -14.5 | -8.4 |
| EBITA | -1,127 | -282 | -171 | 142 | -1,439 | -366 | -78 | -360 | -1,212 | -2,016 |
| EBITA margin, % | -11.3 | -2.4 | -1.5 | 1.1 | -3.2 | -3.2 | -0.7 | -3.0 | -11.6 | -4.5 |
| Operating income | -1,204 | -369 | -249 | 45 | -1,776 | -439 | -160 | -440 | -1,302 | -2,341 |
| Operating margin, % | -12.1 | -3.1 | -2.2 | 0.4 | -3.9 | -3.8 | -1.4 | -3.7 | -12.5 | -5.2 |
| Latin America | ||||||||||
| Net sales | 6,768 | 7,910 | 7,489 | 8,608 | 30,775 | 6,196 | 6,915 | 7,193 | 8,616 | 28,920 |
| Sales growth, % | 14.8 | 26.6 | 25.8 | 21.8 | 22.3 | 20.9 | 5.6 | 7.6 | 29.4 | 15.2 |
| EBITA | 458 | 675 | 541 | 737 | 2,411 | 276 | 368 | 446 | 692 | 1,782 |
| EBITA margin, % | 6.8 | 8.5 | 7.2 | 8.6 | 7.8 | 4.5 | 5.3 | 6.2 | 8.0 | 6.2 |
| Operating income | 404 | 623 | 490 | 685 | 2,202 | 236 | 333 | 405 | 649 | 1,624 |
| Operating margin, % | 6.0 | 7.9 | 6.5 | 8.0 | 7.2 | 3.8 | 4.8 | 5.6 | 7.5 | 5.6 |
| Group common costs, etc: operating | ||||||||||
| income | -158 | -70 | -134 | -296 | -658 | -136 | -150 | -86 | -757 | -1,129 |
| Total Group | ||||||||||
| Net sales | 31,077 | 33,819 | 33,286 | 37,968 | 136,150 | 32,734 | 32,653 | 33,427 | 35,636 | 134,451 |
| Sales growth, % | -3.7 | 6.8 | 6.2 | 11.2 | 5.0 | 1.1 | -8.8 | -7.9 | -0.8 | -4.3 |
| EBITA | -417 | 741 | 667 | 1,413 | 2,404 | 6 | 164 | 904 | -2,894 | -1,819 |
| EBITA margin, % | -1.3 | 2.2 | 2.0 | 3.7 | 1.8 | 0.0 | 0.5 | 2.7 | -8.1 | -1.4 |
| Operating income | -720 | 419 | 349 | 1,052 | 1,100 | -256 | -124 | 608 | -3,215 | -2,988 |
| Operating margin, % | -2.3 | 1.2 | 1.0 | 2.8 | 0.8 | -0.8 | -0.4 | 1.8 | -9.0 | -2.2 |
| Income for the period | -1,230 | -80 | -235 | 150 | -1,394 | -588 | -648 | 123 | -4,113 | -5,227 |
| Earnings per share, SEK¹ | -4.55 | -0.30 | -0.87 | 0.56 | -5.16 | -2.18 | -2.40 | 0.46 | -15.23 | -19.36 |
1 Basic
Non-recurring items by business area
| SEKM | Q1 2024 | Q2 2024 Q3 2024¹ Q4 2024² | Full year 2024 |
Q1 2023³ Q2 2023⁴ Q3 2023⁵ | Q4 2023⁶ | Full year 2023 |
||||
|---|---|---|---|---|---|---|---|---|---|---|
| Europe, Asia-Pacific, Middle | ||||||||||
| East and Africa | - | - | -368 | -198 | -566 | -561 | -643 | 294 | -2,118 | -3,028 |
| North America | - | - | - | - | - | - | - | - | 148 | 148 |
| Latin America | - | - | - | - | - | - | - | - | -51 | -51 |
| Group common costs, etc. | - | - | - | - | - | - | - | - | -470 | -470 |
| Total Group | - | - | -368 | -198 | -566 | -561 | -643 | 294 | -2,491 | -3,401 |
1 The non-recurring item of SEK -368m in the third quarter of 2024 refers to business area Europe, Asia-Pacific, Middle East and Africa and the impairment of goodwill related to the divestment of the water heater business in South Africa, announced in July 2024. The cost is included in Other operating income/expenses. 2 The non-recurring item of SEK -198m in the fourth quarter of 2024 refers to business area Europe, Asia-Pacific, Middle East and Africa and the divestment of the
water heater business in South Africa, see Note 5 on page 26. The item is included in Other operating income/expenses. 3 The non-recurring item of SEK -561m in the first quarter of 2023 refers to business area Europe and the restructuring charge related to the discontinuation of production at the Nyíregyháza factory in Hungary from the beginning of 2024. The cost is included in Cost of goods sold.
4 The non-recurring item of SEK-643m in the second quarter of 2023 refers to business area Europe and a provision mainly related to a French antitrust case. The cost is included in Other operating income/expenses.
5 The non-recurring item of SEK 294m in the third quarter of 2023 refers to business area Europe and the gain from the divestment of the Nyíregyháza factory in Hungary. The gain is included in Other operating income/expenses.
6 The non-recurring items of SEK -2,491m in the fourth quarter of 2023 refer to a restructuring charge of SEK -2,548m for the expanded Group-wide cost reduction and North America turnaround program, a capital gain of SEK 262m for the divestment of the factory in Memphis, U.S., and SEK -205m in impairment of assets driven by the formation of the new business area Europe, Asia-Pacific, Middle East and Africa. The gain is included in Other operating income/expenses. The costs related to restructuring and impairment of assets are included in the applicable functional lines of the income statement.
Operating income excluding non-recurring items (NRI)
| Full year | Full year | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEKM | Q1 2024 | Q2 2024 Q3 2024 Q4 2024 | 2024 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | 2023 | ||
| Europe, Asia-Pacific, Middle East and Africa |
||||||||||
| Operating income excl. NRI | 238 | 235 | 610 | 815 | 1,898 | 643 | 497 | 434 | 313 | 1,887 |
| Operating margin excl. NRI, % | 1.7 | 1.7 | 4.2 | 4.8 | 3.2 | 4.3 | 3.4 | 3.0 | 1.9 | 3.1 |
| North America | ||||||||||
| Operating income excl. NRI | -1,204 | -369 | -249 | 45 | -1,776 | -439 | -160 | -440 | -1,450 | -2,489 |
| Operating margin excl. NRI, % | -12.1 | -3.1 | -2.2 | 0.4 | -3.9 | -3.8 | -1.4 | -3.7 | -13.9 | -5.5 |
| Latin America | ||||||||||
| Operating income excl. NRI | 404 | 623 | 490 | 685 | 2,202 | 236 | 333 | 405 | 700 | 1,675 |
| Operating margin excl. NRI, % | 6.0 | 7.9 | 6.5 | 8.0 | 7.2 | 3.8 | 4.8 | 5.6 | 8.1 | 5.8 |
| Group common cost etc | ||||||||||
| Operating income excl. NRI | -158 | -70 | -134 | -296 | -658 | -136 | -150 | -86 | -286 | -659 |
| Total Group | ||||||||||
| Operating income excl. NRI | -720 | 419 | 717 | 1,249 | 1,666 | 305 | 519 | 314 | -724 | 414 |
| Operating margin excl. NRI, % | -2.3 | 1.2 | 2.2 | 3.3 | 1.2 | 0.9 | 1.6 | 0.9 | -2.0 | 0.3 |
Net sales by business area
| SEKM | Q4 2024 | Q4 2023 Full-year 2024 Full-year 2023 | ||
|---|---|---|---|---|
| Europe, Asia-Pacific, Middle East and Africa | 16,892 | 16,586 | 59,795 | 60,458 |
| North America | 12,468 | 10,434 | 45,581 | 45,072 |
| Latin America | 8,608 | 8,616 | 30,775 | 28,920 |
| Total Group | 37,968 | 35,636 | 136,150 | 134,451 |
Change in Net sales by business area, %
| Q4 2024 currency | Full-year 2024 | |||
|---|---|---|---|---|
| Year–over–year, % | Q4 2024 | adjusted | Full-year 2024 | currency adjusted |
| Europe, Asia-Pacific, Middle East and Africa | 2 | 3 | -1 | 0 |
| North America | 19 | 17 | 1 | 2 |
| Latin America | -0 | 22 | 6 | 22 |
| Total change Group | 7 | 11 | 1 | 5 |
Operating income by business area
| 617 | -1,805 | 1,332 | -1,141 |
|---|---|---|---|
| 3.7 | -10.9 | 2.2 | -1.9 |
| 45 | -1,302 | -1,776 | -2,341 |
| 0.4 | -12.5 | -3.9 | -5.2 |
| 685 | 649 | 2,202 | 1,624 |
| 8.0 | 7.5 | 7.2 | 5.6 |
| -296 | -757 | -658 | -1,129 |
| 1,052 | -3,215 | 1,100 | -2,988 |
| 2.8 | -9.0 | 0.8 | -2.2 |
| Q4 2024 | Q4 2023 Full-year 2024 Full-year 2023 |
Change in operating income by business area, SEKM
| Q4 2024 currency | Full-year 2024 | |||
|---|---|---|---|---|
| Year–over–year, SEKM | Q4 2024 | adjusted Full-year 2024 | currency adjusted | |
| Europe, Asia-Pacific, Middle East and Africa | 2,422 | 2,482 | 2,473 | 2,651 |
| North America | 1,347 | 1,365 | 565 | 559 |
| Latin America | 36 | 155 | 578 | 850 |
| Group common costs, etc. | 461 | 447 | 472 | 439 |
| Total change Group | 4,266 | 4,448 | 4,088 | 4,499 |
Working capital and net assets
| SEKM | Dec. 31, 2024 | %¹ | Dec. 31, 2023 | %¹ |
|---|---|---|---|---|
| Inventories | 21,271 | 15.6 | 19,965 | 15.6 |
| Trade receivables | 24,590 | 18.1 | 22,247 | 17.4 |
| Accounts payable | -41,009 | -30.2 | -36,402 | -28.5 |
| Operating working capital | 4,853 | 3.6 | 5,809 | 4.5 |
| Provisions | -8,365 | -10,730 | ||
| Prepaid and accrued income and expenses | -12,870 | -11,302 | ||
| Taxes and other assets and liabilities | -719 | -703 | ||
| Working capital | -17,102 | -12.6 | -16,925 | -13.2 |
| Property, plant and equipment, owned | 28,777 | 28,730 | ||
| Property, plant and equipment, right-of-use | 4,382 | 4,337 | ||
| Goodwill | 5,393 | 6,579 | ||
| Other non-current assets | 7,554 | 7,086 | ||
| Deferred tax assets and liabilities | 8,415 | 7,694 | ||
| Net assets | 37,420 | 27.5 | 37,500 | 29.4 |
| Annualized net sales, calculated at end of period exchange rates | 135,922 | 127,750 | ||
| Average net assets | 38,936 | 28.6 | 43,401 | 32.3 |
| Annualized net sales, calculated at average exchange rates | 136,150 | 134,451 |
¹ Of annualized net sales.
Net assets by business area
| Equity and | ||||||
|---|---|---|---|---|---|---|
| Assets | liabilities | Net assets | ||||
| Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | |
| SEKM | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Europe, Asia-Pacific, Middle East and Africa | 43,206 | 42,687 | 33,996 | 33,432 | 9,210 | 9,254 |
| North America | 28,526 | 27,490 | 17,803 | 15,896 | 10,724 | 11,593 |
| Latin America | 20,020 | 18,358 | 12,348 | 10,517 | 7,673 | 7,841 |
| Other¹ | 14,943 | 14,149 | 5,130 | 5,338 | 9,813 | 8,811 |
| Total operating assets and liabilities | 106,696 | 102,684 | 69,277 | 65,184 | 37,420 | 37,500 |
| Liquid funds | 16,592 | 15,669 | ||||
| Long-term financial receivables | - | 185 | ||||
| Total borrowings | 39,298 | 36,725 | ||||
| Lease liabilities | 4,812 | 4,685 | ||||
| Pension assets and liabilities | 1,634 | 1,514 | 1,970 | 2,184 | ||
| Total equity | 9,723 | 11,274 | ||||
| Total | 124,922 | 120,053 | 125,079 | 120,053 |
¹ Includes common functions and tax items.
Parent Company income statement
| SEKM | Q4 2024 | Q4 2023 Full-year 2024 Full-year 2023 | ||
|---|---|---|---|---|
| Net sales | 11,169 | 10,922 | 40,272 | 40,302 |
| Cost of goods sold | -10,096 | -10,564 | -36,623 | -37,507 |
| Gross operating income | 1,073 | 358 | 3,649 | 2,795 |
| Selling expenses | -1,118 | -1,275 | -4,221 | -3,645 |
| Administrative expenses | -249 | -1,485 | -1,686 | -3,601 |
| Other operating income | 1 | - | 1 | - |
| Other operating expenses | -831 | -340 | -841 | -340 |
| Operating income | -1,124 | -2,742 | -3,098 | -4,791 |
| Financial income | 1,220 | 570 | 6,710 | 2,572 |
| Financial expenses | -722 | -815 | -2,872 | -2,603 |
| Financial items, net | 498 | -245 | 3,838 | -31 |
| Income after financial items | -626 | -2,987 | 740 | -4,822 |
| Appropriations | 1 | 91 | 113 | 202 |
| Income before taxes | -625 | -2,896 | 853 | -4,620 |
| Taxes | -172 | 607 | 200 | 894 |
| Income for the period | -797 | -2,289 | 1,053 | -3,726 |
Parent Company balance sheet
| SEKM | Dec. 31, 2024 | Dec. 31, 2023 |
|---|---|---|
| Assets | ||
| Non–current assets | 48,016 | 42,753 |
| Current assets | 32,793 | 33,675 |
| Total assets | 80,809 | 76,428 |
| Equity and liabilities | ||
| Restricted equity | 7,067 | 6,913 |
| Non–restricted equity | 6,653 | 5,735 |
| Total equity | 13,720 | 12,648 |
| Untaxed reserves | 469 | 565 |
| Provisions | 2,820 | 3,627 |
| Non–current liabilities | 31,876 | 28,868 |
| Current liabilities | 31,924 | 30,720 |
| Total equity and liabilities | 80,809 | 76,428 |
Shares
| Shares held by | Shares held by | ||||
|---|---|---|---|---|---|
| Number of shares | A-shares | B-shares | Shares total | Electrolux | other shareholders |
| Number of shares as of January 1, 2024 | 8,191,804 | 274,885,589 | 283,077,393 | 13,049,115 | 270,028,278 |
| Change during the year | - | - | - | - | - |
| Number of shares as of December 31, 2024 | 8,191,804 | 274,885,589 | 283,077,393 | 13,049,115 | 270,028,278 |
| % of total number of shares | 4.6% |
Notes
Note 1 Accounting principles
Electrolux 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, the Swedish Annual Accounts Act and RFR 2 'Accounting for legal entities' issued by the Swedish Financial Reporting Board.
Electrolux interim reports contain a condensed set of financial statements. For the Group this chiefly means that the disclosures are limited compared to the consolidated financial statements presented in the annual report. For the Parent Company this means that the financial statements in general are presented in condensed versions and with limited disclosures compared to the annual report.
The accounting policies applied are consistent with those applied in the preparation of the Group's Annual Report 2023, except for the adoption of standard amendments effective as of January 1, 2024, and for one change in accounting principle. These changes have not had any material impact on the financial statements. See section 'New or amended accounting standards to be applied after 2023 in the Annual Report 2023 for more information on the standard amendments. The change in accounting principle concerns the consolidation of the housing association BRF Gourmet, the effect from which has been reported as an opening balance adjustment to equity of SEK -117m in 2024. The related assets and liabilities are included in Other current assets and Other short-term liabilities respectively in the group's balance sheet.
Note 2 Disaggregation of revenue
Electrolux manufactures and sells appliances mainly in the wholesale market to customers being retailers. Electrolux products include refrigerators, freezers, dishwashers, washing machines, dryers, cookers, microwave ovens, vacuum cleaners, air conditioners and small domestic appliances. Electrolux has three regional business areas with focus on the consumer market.
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 services are not material in relation to Electrolux total net sales. Geography and product category are considered important attributes when disaggregating Electrolux revenue. The three business areas, also being the Group's segments, are based on geography: Europe, Asia-Pacific, Middle East and Africa; North America and Latin America. For business area information, see pages 6-8. In addition, the table below presents net sales by product area Taste (cooking, refrigeration and freezer appliances), Care (dish and laundry appliances) and Wellbeing (e.g., air conditioners, cleaning appliances and small domestic appliances). Products within all product areas are sold in each of the reportable segments, i.e., the business areas, as presented in the graph below.
0% 20% 40% 60% 80% 100%
| Full-year | Full-year | |
|---|---|---|
| SEKM | 2024 | 2023 |
| Product areas | ||
| Taste | 82,632 | 81,939 |
| Care | 41,026 | 39,724 |
| Wellbeing | 12,492 | 12,788 |
| Total | 136,150 | 134,451 |
Revenue per product area Business area revenue per product area
Taste Care Wellbeing
Note 3 Fair values and carrying amounts of financial assets and liabilities
| Dec. 31, 2024 | Dec. 31, 2023 | ||||
|---|---|---|---|---|---|
| Carrying | Carrying | ||||
| SEKM | Fair value | amount | Fair value | amount | |
| Per category | |||||
| Financial assets at fair value through profit and loss | 236 | 236 | 427 | 427 | |
| Financial assets measured at amortized cost | 40,763 | 40,763 | 37,580 | 37,580 | |
| Derivatives, financial assets at fair value through profit and loss | 334 | 334 | -76 | -76 | |
| Derivatives, hedge accounting | 74 | 74 | 243 | 243 | |
| Total financial assets | 41,406 | 41,406 | 38,174 | 38,174 | |
| Financial liabilities measured at amortized cost | 80,402 | 79,825 | 71,976 | 72,590 | |
| Derivatives, financial liabilities at fair value through profit and loss | 186 | 186 | 333 | 333 | |
| Derivatives, hedge accounting | - | - | 35 | 35 | |
| Total financial liabilities | 80,588 | 80,011 | 72,344 | 72,958 |
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 at fair value according to the following hierarchy:
Level 1: Quoted prices in active markets for identical assets or liabilities. On December 31 the fair value for Level 1 financial assets was SEK 167m (164) and for financial liabilities SEK 0m (0).
Level 2: Inputs other than quoted prices included in Level 1 that are observable for assets or liabilities either directly or indirectly. On December 31 the fair value of Level 2 financial assets was SEK 408m (167) and financial liabilities SEK 186m (368).
Level 3: Inputs for the assets or liabilities that are not entirely based on observable market data. On December 31 the fair value of Level 3 financial assets was SEK 69m (263) and financial liabilities SEK 0m (0).
Note 4 Pledged assets and contingent assets and liabilities
| SEKM | Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Group | ||
| Pledged assets | - | - |
| Guarantees and other commitments | 1,472 | 1,525 |
| Parent Company | ||
| Pledged assets | - | - |
| Guarantees and other commitments | 1,210 | 1,120 |
Update on legal proceedings
As previously communicated, the French antitrust proceedings were concluded in December 2024. The French Competition Authority decided on a fine of EUR 44.5m, fully covered by the provision set by Electrolux Group in the second quarter of 2023 and then reported as a non-recurring item. The decision from the competition authority followed on a settlement that was reached in 2023 between the Authority and Electrolux Group.
In December 2024, Electrolux Group divested all its potential legacy asbestos exposure in the U.S. by selling three wholly owned subsidiaries in the U.S., which hold these liabilities and related insurance assets, see page 7.
In December 2024, Electrolux Poland became the subject of an investigation by the Polish Competition Authority regarding a possible violation of antitrust rules. The investigation is ongoing, and the Authority has so far not communicated any conclusions. Given the nature of the investigation, it cannot be ruled out that the outcome could have a material impact on the Group's financial result and cash flow. At this stage it is however not possible to evaluate the extent of such a potential impact. No provision relating to this investigation has been set.
For more information on contingent assets and liabilities, see Note 25 in the Annual Report 2023.
Note 5 Acquisitions and divestments
The divestment of the water heater business in South Africa was completed in December 2024, as well the divestment of the asbestos exposure in the U.S., see Note 4 and page 7. There were no acquisitions completed in 2024, and no acquisitions or divestments completed in 2023.
Divestment of the South African water heater business
Electrolux Group announced on July 18, 2024, that an agreement had been signed to divest the water heater business (Kwikot brand) in South Africa. The divestment was completed on December 2, 2024, following regulatory approvals.
Net sales in 2023 related to the water heater business amounted to approximately ZAR 1.9bn (approx. SEK 1.1bn). Divested total assets amount to SEK 1.9bn, divested net assets amount to SEK 1.1bn. Proceeds received amounted to SEK 1.1bn and the net cash flow effect from the divestment amounts to approximately SEK 1.0bn. The divestment had a total impact on the full-year 2024 result of SEK -566m, including an impairment of goodwill of SEK -368m which was affecting the result in the third quarter 2024. The negative earnings effect of SEK -198m in the fourth quarter includes SEK -132m from the reclassification of accumulated negative currency effect in equity. The reclassification does not affect total equity.
The divestment effect is treated as a non-recurring item for business area Europe, Asia-Pacific, Middle East and Africa.
Operations by business area yearly
| SEKM | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Europe, Asia-Pacific, Middle East and Africa | |||||
| Net sales | 60,826 | 65,204 | 63,557 | 60,458 | 59,795 |
| Operating income | 4,681 | 5,514 | 1,991 | -1,141 | 1,332 |
| Margin, % | 7.7 | 8.5 | 3.1 | -1.9 | 2.2 |
| North America | |||||
| Net sales | 38,219 | 40,468 | 47,021 | 45,072 | 45,581 |
| Operating income | 1,215 | 688 | -2,394 | -2,341 | -1,776 |
| Margin, % | 3.2 | 1.7 | -5.1 | -5.2 | -3.9 |
| Latin America | |||||
| Net sales | 16,915 | 19,958 | 24,303 | 28,920 | 30,775 |
| Operating income | 666 | 1,336 | 1,058 | 1,624 | 2,202 |
| Margin, % | 3.9 | 6.7 | 4.4 | 5.6 | 7.2 |
| Other | |||||
| Group common cost, etc. | -783 | -737 | -870 | -1,129 | -658 |
| Total Group | |||||
| Net sales | 115,960 | 125,631 | 134,880 | 134,451 | 136,150 |
| Operating income | 5,778 | 6,801 | -215 | -2,988 | 1,100 |
| Margin, % | 5.0 | 5.4 | -0.2 | -2.2 | 0.8 |
| Non-recurring items in operating income¹ | 2020 | 2021² | 2022³ | 2023⁴ | 2024⁵ |
|---|---|---|---|---|---|
| Europe, Asia-Pacific, Middle East and Africa | - | - | -840 | -3,028 | -566 |
| North America | - | -727 | 241 | 148 | - |
| Latin America | - | - | -80 | -51 | - |
| Group common cost | - | - | -367 | -470 | - |
| Total Group | - | -727 | -1,046 | -3,401 | -566 |
¹ For more information, see Note 7 in the annual reports.
² Non-recurring item of SEK -727m in the fourth quarter of 2021 refers to business area North America and arbitration in U.S. tariff case on washing machines imported into the U.S. from Mexico in 2016/2017.
3 Non-recurring items of SEK -1,046m in 2022 whereof SEK 656m refers to a settlement regarding the arbitration in a U.S. tariff case, SEK -350m to a loss from the exit from the Russian market, SEK -1,536m to restructuring charges across business areas and Group common cost for the Group-wide cost reduction and North America turnaround program, SEK 394m to the divestment of the office facility in Zürich, Switzerland, and SEK -210m to the termination of a U.S pension plan, transferred to a third party.
4 Non-recurring items of SEK -3,401m in 2023 whereof SEK -561m refers to a restructuring charge related to the discontinuation of production at the Nyíregyháza factory in Hungary, SEK-643m refers to a provision mainly related to a French antitrust case, SEK 294m to the gain from the divestment of the Nyíregyháza factory, SEK -2,548m to a restructuring charge for the expanded Group-wide cost reduction and North America turnaround program, SEK 262m to a capital gain from the divestment of the factory in Memphis, U.S., and SEK -205m to impairment of assets driven by the formation of the new business area Europe, Asia-Pacific, Middle East and Africa.
5 Non-recurring item of SEK -566m in 2024 refers to business area Europe, Asia-Pacific, Middle East and Africa and the divestment of the water heater business in South Africa.
Five-year review Total Group 2020 - 2024
| SEKM unless otherwise stated | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net sales | 115,960 | 125,631 | 134,880 | 134,451 | 136,150 |
| Organic growth, % | 3.2 | 14.2 | -2.8 | -4.0 | 5.1 |
| Operating income | 5,778 | 6,801 | -215 | -2,988 | 1,100 |
| Operating margin, % | 5.0 | 5.4 | -0.2 | -2.2 | 0.8 |
| Income after financial items | 5,096 | 6,255 | -1,672 | -5,111 | -847 |
| Income for the period | 3,988 | 4,678 | -1,320 | -5,227 | -1,394 |
| Non-recurring items in operating income¹ | - | -727 | -1,046 | -3,401 | -566 |
| Capital expenditure, property, plant and equipment | -4,325 | -4,847 | -5,649 | -4,069 | -3,450 |
| Operating cash flow after investments | 8,552 | 3,200 | -6,118 | 3,064 | 2,254 |
| Earnings per share, SEK² | 13.88 | 16.31 | -4.81 | -19.36 | -5.16 |
| Equity per share, SEK | 65.10 | 65.74 | 60.92 | 41.75 | 36.01 |
| Dividend per share, SEK³ | 8.00 | 9.20 | - | - | |
| Capital-turnover rate, times/year | 4.5 | 5.3 | 3.7 | 3.1 | 3.5 |
| Return on net assets, % | 22.6 | 28.5 | -0.6 | -6.9 | 2.8 |
| Return on equity, %⁴ | 34.1 | 24.4 | -7.0 | -33.7 | -13.6 |
| Net debt | 1,556 | 8,591 | 23,848 | 26,226 | 27,853 |
| Net debt/EBITDA | 0.2 | 0.7 | 3.8 | 3.9 | 3.4 |
| Net debt/equity ratio | 0.08 | 0.46 | 1.45 | 2.33 | 2.86 |
| Average number of shares excluding shares owned by | |||||
| Electrolux, million | 287.4 | 286.9 | 274.7 | 270.0 | 270.0 |
| Average number of employees | 47,543 | 51,590 | 50,769 | 45,452 | 40,787 |
¹ For more information, see table on page 27 and Note 7 in the annual reports.
² Basic.
3 2024, proposed by the Board. 4 Return on equity for the full year 2020 include a settlement gain from the distribution of Electrolux Professional. Adjusted for the settlement gain, return on equity was 21.7%.
Financial goals over a business cycle
The financial goals set by Electrolux aim to strengthen the Group's leading, global position in the industry and to assist in generating a healthy total yield for Electrolux shareholders. The objective is growth with consistent profitability.
Financial goals
- Operating margin of at least 6%
- Capital turnover-rate of at least 4 times
- Return on net assets >20%
- Average annual sales growth of at least 4%
Definitions and reconciliations of alternative performance measures
This report includes financial measures as required by the financial reporting framework applicable to Electrolux Group, which is based on IFRS. In addition, Electrolux Group 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 to IFRS. The APMs have been derived from the Group's internal reporting and are not audited. The APM reconciliations can be found on the Group's website www.electroluxgroup.com/ir/definitions
Computation of average amounts and annualized income statement measures
In computation of key ratios where averages of capital balances are related to income statement measures, the average capital balances are based on the opening balance and all quarter-end closing balances included in the reporting period, and the income statement measures are annualized, translated at average rates for the period. In computation of key ratios where end-of-period capital balances are related to income statement measures, the latter are annualized, translated at end of-period exchange rates. Adjustments are made for acquired and divested operations.
Definitions and reconciliations of alternative performance measures (continued)
Growth measures
Change in net sales
Current year net sales for the period less previous year net sales for the period as a percentage of previous year net sales for the period.
Sales growth Change in net sales adjusted for currency translation effects.
Organic growth
Change in net sales, adjusted for changes in exchange rates, acquisitions and divestments.
Acquisitions
Change in net sales, adjusted for organic growth, changes in exchange rates and divestments. The impact from acquisitions relates to net sales reported by acquired operations within 12 months after the acquisition date.
Divestments
Change in net sales, adjusted for organic growth, changes in exchange rates and acquisitions. The impact from divestments relates to net sales reported by the divested operations within 12 months before the divestment date.
Profitability measures
EBITA
Operating income excluding amortization of intangible assets.
EBITA margin EBITA expressed as a percentage of net sales.
EBITDA
Operating income excluding depreciation and amortization.
Operating income excluding non-recurring items Operating income adjusted for non-recurring items.
Operating income excluding non-recurring items for the period. Operating income adjusted for non-recurring items for the period.
Operating margin (EBIT margin) Operating income (EBIT) expressed as a percentage of net sales.
Operating margin (EBIT margin) excluding non-recurring items Operating income (EBIT) excluding non-recurring items, expressed as a percentage of net sales.
Return on net assets Operating income (annualized) expressed as a percentage of average net assets.
Return on equity Income for the period (annualized) expressed as a percentage of average total equity.
Capital measures
Net debt/equity ratio Net debt in relation to total equity.
Net debt/EBITDA Net debt at end of period in relation to 12-months rolling EBITDA, excluding non-recurring items.
Equity/assets ratio Total equity as a percentage of total assets less liquid funds.
Capital turnover-rate Net sales (annualized) divided by average net assets.
Share-based measures
Earnings per share, Basic Income for the period attributable to equity holders of the Parent Company divided by the average number of shares excluding shares held by Electrolux.
Earnings per share, Diluted
Income for the period attributable to equity holders of the Parent Company divided by the average number of shares after dilution, excluding shares held by Electrolux.
Equity per share
Total equity divided by total number of shares excluding shares held by Electrolux.
Capital indicators
Liquid funds
Cash and cash equivalents, short-term investments, financial derivative assets1 and prepaid interest expenses and accrued interest income1 .
Operating working capital Inventories and trade receivables less accounts payable.
Working capital
Total current assets exclusive of liquid funds, less non-current other provisions and total current liabilities exclusive of total short-term borrowings.
Net assets
Total assets exclusive of liquid funds and pension plan assets, less deferred tax liabilities, non-current other provisions and total current liabilities exclusive of total short-term borrowings.
Total borrowings Long-term borrowings and short-term borrowings, financial derivative liabilities1 , accrued interest expenses and prepaid interest income1 .
Total short-term borrowings Short-term borrowings, financial derivative liabilities1 , accrued interest expenses and prepaid interest income1 .
Interest-bearing liabilities Long-term borrowings and short-term borrowings exclusive of liabilities related to trade receivables with recourse1 .
Financial net debt Total borrowings less liquid funds.
Net provision for post-employment benefits Provisions for post-employment benefits less pension plan assets.
Net debt Financial net debt, lease liabilities and net provision for post-employment benefits.
Other measures
Operating cash flow Operating income adjusted for depreciation, amortization and other noncash items plus/minus change in operating assets and liabilities.
Operating cash flow after investments Cash flow from operations and investments adjusted for financial items paid, taxes paid and acquisitions/divestments of operations.
Operating cash flow after structural changes Operating cash flow adjusted for structural changes.
Cash flow excluding change in loans and short-term investments for the period
Cash flow adjusted for change in loans and short-term investments for the period.
Non-recurring items
Material profit or loss items in operating income which are relevant for understanding the financial performance when comparing income for the current period with previous periods.
1 See table Net debt on page 10.
Shareholders' information
President and CEO Yannick Fierling's comments on the fourth quarter results 2024.
Today's press release is available on the Electrolux website www.electroluxgroup.com/ir
Telephone conference 09.00 CET
A telephone conference is held at 09.00 CET today, January 30. Yannick Fierling, President and CEO, and Therese Friberg, CFO, will comment on the report.
To only listen to the telephone conference, use the link:
https://edge.media-server.com/mmc/p/t5j746u2
OR
To both listen to the telephone conference and ask questions, use the link:
https://register.vevent.com/register/BIf2eec702a54847 a6abf57e788d2c218c
Presentation material available for download www.electroluxgroup.com/ir
For further information, please contact: Maria Åkerhielm, Investor Relations +46 70 796 38 56
Calendar 2025
| Annual Report, week 8 | February 17-21 |
|---|---|
| AGM | March 26 |
| Interim report January - March | April 29 |
| Interim report January - June | July 18 |
| Interim report January - September | October 30 |
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, supply and production constraints, 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 considering new information or future events.
AB Electrolux (publ), 556009-4178 Postal address: SE-105 45 Stockholm, Sweden Visiting address: S:t Göransgatan 143, Stockholm Telephone: +46 (0)8 738 60 00
Website: www.electroluxgroup.com
Shape living for the better
Electrolux Group is a leading global appliance company that has shaped living for the better for more than 100 years. We reinvent taste, care and wellbeing experiences for millions of people, always striving to be at the forefront of sustainability in society through our solutions and operations. Under our group of leading appliance brands, including Electrolux, AEG and Frigidaire, we sell household products in around 120 markets. In 2024 Electrolux Group had sales of SEK 136 billion and employed 41,000 people around the world. For more information go to www.electroluxgroup.com
