STOCKHOLM, April 29, 2022 /PRNewswire/ —
Highlights from the first quarter 2022
- Net sales rose to SEK 30,118m(29 026), which corresponds to an organic sales decrease of 3.4%. This was partially due to lower volumes compared with a strong last-year, but also strong price execution.
- Operating income was approximately SEK 1,575m(2,297), which corresponds to a margin 5.2% (7.9).
- Operating income includes a positive, non-recurring item SEK 656mThe U.S. Tariff Case has an impact on the Business Area North America. This non-recurring item was excluded from operating income. SEK 919mThis is equivalent to a margin at 3.1% (7.9) Significant cost increases and supply restrictions that affected volume were not fully compensated for by price increases or new product launches.
- The income for this period was $ SEK 950m(1,556). Earnings per share was SEK 3.40 (5.41).
- After investments, the operating cash flow was SEK -5.280m (-161). Global supply chain constraints and a more normal seasonal flow than last year also contributed to an increase in inventory levels.
President and CEO Jonas Samuelson’sComment
The terrible situation in UkraineThis also contributed to the already rising cost inflation and supply stability. We are also entering our most launch-intensive phase ever. I am extremely pleased with the strong consumer demand to our premium products.
Supply chain constraints continued to have a significant impact on our production and sales volumes in the first quarter, especially for higher-featured products. As expected, the constraints led to significant costs for express logistics and spot purchases. This supply situation also increased inventory levels which adversely affected cash flow. We are working closely together with our suppliers to alleviate these constraints. However we estimate that the second-quarter will be just as challenging as it was the first quarter. There are significant disruptions related to the resurgence and spread of the coronavirus. China. We expect incremental improvements starting in the middle of 2022.
Organic sales decreased by 3.4% in the first quarter and operating margin was excl. Non-recurring items were 3.1%.
To offset the rising inflationary pressures, we have continued to implement increase in list prices in all regions for the quarter. The cumulative year-overyear effect of these increases has been over 8%. We are continuing to implement further increases. In today’s inflationary environment, price rises are more commonly accepted in the market. For the whole year, we are confident that price will completely offset cost inflation as it has done over the past four.
We are seeing limited visibility for the remainder of this year due to geopolitical tensions, inflation at an all-time high, global supply chain constraints, and uncertainty regarding the coronavirus panademic. We have revised our outlook for the 2022 full-year regional market demand. North AmericaSupply constraints and instabilities were the major drivers of the increase in unemployment. EuropeBecause of lower consumer confidence. We expect that demand in these areas will remain above pre-pandemic levels.
Russia’sInvasion UkraineIt is a serious violation international law. We are concerned about the geopolitical situation in which the invasion is taking place and the suffering it is causing our employees as well as the people of Ukraine. We recognize the urgent need to help so we have concentrated our efforts on supporting International Red Cross’ humanitarian response. Ukraine. We stopped all operations immediately after the war began. RussiaAnd Belarus. In UkraineLocated in the western region of the city, the factory houses both sales and production. Ukraine, were halted. After careful risk assessment, production was halted. UkraineRe-started in the second half April. In 2021 Russia, BelarusAnd UkraineAbout 2% of Group net revenues were represented by them.
As demonstrated over the past two years, our ability to adapt quickly to changing environments and succeed in it will be crucial. It is a confirmation of our ability to quickly respond to challenges and seize the opportunities that we have developed.
We are one of the industry’s leading players and have a significant responsibility to ensure that our investments support the Paris Agreement’s goal to limit global warming to 1.5C. Anderson’s recent investment in a production facility is a great example. The investment has led to a significant reduction in the carbon footprint and increased efficiency.
Telephone conference 09.00 CET
Today at 09:00 CET, a telephone conference will be held. April 29. Jonas SamuelsonPresident and CEO of Therese FribergThe report will be reviewed by the CFO.
Participation details by phone
Sweden: +46 8 56 61 84 67
UK: +44 8 44 48 19 752
U.S.: +1 646 741 3167
International: +44 2071 928 338
Pin/Passcode: 6044078
Slide presentation for download
Webcast Link
https://edge.media-server.com/mmc/p/ti4p5ccx
CONTACT:
For more information, please call:
Sophie Arnius Head of Investor Relations +4670 590 80 72
Rupini Bergstrm, Electrolux Press Hotline, +46 8657 6507
This information is required to be made public by AB Electrolux under the EU Market Abuse Regulation. The information was submitted for publication through the agency of above-mentioned contact person at 08.00 CET. April 29, 2022.
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SOURCE Electrolux
