Electrolux closed a difficult year

Jonas Samuelson, president and CEO of Electrolux

In the full-year 2022, Electrolux net sales were SEK 134,880 million and operating income excl. non-recurring items was SEK 831million. Earnings declined due to lower volumes, as a result of weaker market demand, and to elevated cost levels from production inefficiencies in North America. Strong price execution and attractive product and brand offering contributed positively to earnings.

«In 2022 – commented Jonas Samuelson, ceo and president of Electrolux – new challenges presented themselves in addition to supply chain constraints: high general inflation, raised interest rates, soaring energy prices, and increased geopolitical tensions. These negatively impacted consumer demand for household appliances, especially evident in the latter part of the year. In the fourth quarter, significantly lower sales volumes resulted in an organic sales decline of 8.4%. The volume decline across all regions was coupled with severely elevated cost levels in our North American operation».

«Looking into 2023, consumer sentiment is anticipated to continue to be negatively impacted by a high inflation and interest rate environment, although with regional differences – Samuelson added – . Demand for core appliances in 2023 full-year is therefore expected to be negative for all regions except for the Asia-Pacific, Middle East and Africa region, which is assessed to be flat compared to 2022. On the back of this, we estimate our volumes in 2023 to decline year-over-year, partly mitigated by mix improvements from our strong offering. Although we foresee benefits from lower raw material costs, the positive impact on earnings is reduced as a higher share than normal of raw material procured at last year’s rates will be consumed in 2023. I am convinced that we have the right strategy as well as the experience and the organizational structure needed to navigate in volatile environment and seize opportunities. A successful implementation of the Group-wide cost reduction and North America turnaround program will be our number one priority for 2023».