#Sweden #Stockholm #sales growth #Electrolux Group #Q1 2025

Electrolux Group Q1 2025 Interim Report

On April 29, 2025, Electrolux Group announced its financial results for the first quarter, highlighting a significant growth in net sales and improvements in overall performance. The company's net sales reached SEK 32,576 million, up from SEK 31,077 million in the same period last year. This reflects a remarkable organic sales growth of 7.9% compared to a decline of 3.7% during the previous year.

Key Financial Highlights

• - Operating Income: The operating income saw a notable turnaround, rising to SEK 452 million from a loss of SEK 720 million, which translates to an operating margin increase from -2.3% to 1.4%. This improvement can be credited to enhanced volumes and a favorable product mix, which positively influenced earnings, notwithstanding a minor negative impact caused by price development.
• - Cost Efficiency: The company reported a SEK 1.4 billion boost in cost efficiency, primarily from implemented cost reduction measures.
• - Net Income: The income for the quarter stood at SEK 42 million, compared to a significant loss of SEK 1,230 million a year earlier, leading to earnings per share of SEK 0.16.
• - Cash Flow: On the capital side, Electrolux recorded an operating cash flow of SEK -3,107 million after investments, reflecting seasonal outflows in operating working capital.

CEO's Commentary

Yannick Fierling, the President and CEO, commented on the outcomes, stating that the solid organic sales growth witnessed in Q1 was primarily driven by positive trends in North America and Latin America. Furthermore, the company's operating margin improvement is a positive sign of its recovery strategies.

Fierling expressed that the market conditions were quite variable, with consumer confidence showing signs of deterioration throughout the quarter. Despite the unchanged market demand in North America and Europe, Electrolux noted some improved consumer demand in Brazil. However, increased competition remained a concern.

The executive emphasized that while changes in U.S. trade policies had minimal immediate impacts, the company remains vigilant and flexible in responding to dynamic market changes, ensuring swift adaptations, including potential price adjustments.

Future Outlook

As the company proceeds into the second quarter of 2025, the demand outlook for home appliances looks increasingly uncertain. Consequently, Electrolux has revised its market outlook for North America from