#Market Outlook #Electrolux Group #Q1 2025

Electrolux Group Q1 2025 Earnings Report

Electrolux Group recently released its interim report for the first quarter of 2025, showcasing a robust performance that underscores its resilience in a challenging market environment. The company recorded net sales of SEK 32,576 million, marking a significant increase from SEK 31,077 million, driven by an organic sales growth of 7.9%. This remarkable growth is primarily attributed to strong consumer demand in North America and Latin America.

Key Financial Highlights

The report highlights notable improvements in various financial metrics:

• - Operating Income: The operating income surged to SEK 452 million, reversing from a loss of SEK 720 million in the previous year and resulting in an operating margin of 1.4% compared to -2.3% in Q1 2024.
• - Income for the Period: Electrolux reported an income of SEK 42 million, in stark contrast to a loss of SEK 1,230 million a year earlier.
• - Earnings per Share: The earnings per share stood at SEK 0.16, improving from negative SEK 4.55.

This performance illustrates the effectiveness of Electrolux's strategies focused on cost reduction and operational efficiency, which contributed an impressive SEK 1.4 billion in cost savings during the quarter.

CEO’s Insights

President and CEO, Yannick Fierling, attributed the success to solid organic growth and strategic initiatives. “Our product cost-out initiatives have proven successful, and the increased sales volumes combined with a favorable product mix positively impacted our earnings. Despite some setbacks due to price developments, we managed to maintain a steady course towards financial recovery,” he remarked.

Fierling also acknowledged the complexities posed by a rapidly changing market landscape, marked by economic uncertainty and fluctuating consumer confidence particularly in the U.S and Europe.

Market Conditions and Consumer Confidence

Throughout the quarter, the company faced a backdrop of heightened uncertainty. In North America and Europe, market demand remained relatively stable but was impacted by a drop in consumer confidence amid ambiguous economic signals and potential shifts in U.S. trade policy. In contrast, Latin America saw a slight uptick in consumer demand, with Brazil leading the way amid competitive pressures.

The report did note that changes in U.S. trade policies had a minimal effect during this quarter. “Our organization has displayed commendable agility in adapting to these evolving conditions, allowing us to navigate the challenges effectively,” said Fierling.

2025 Outlook

Looking ahead, the company has adjusted its outlook for the remainder of 2025. The demand forecast for home appliances appears increasingly uncertain, prompting a revision of the North American market outlook from “Neutral” to “Neutral to negative.” However, demand projections for Europe, Asia-Pacific, and Latin America remain classified as “Neutral.”

Electrolux anticipates a net positive influence from pricing adjustments aimed at counteracting tariff-related cost inflation, shifting external factors from