Electrolux (ELUX) Q2 2024 earnings summary

Executive summary

• Organic sales grew 7% in Q2 2024, with volume growth across all business areas, though negative pricing trends persisted.

• Sequential EBIT improved by over SEK 1 billion to SEK 419 million, mainly due to reduced losses in North America and strong results in Latin America.

• Net sales reached SEK 33,819m, up 3.6% year-over-year.

• Divestment of the South African water heater business was completed or announced, with a SEK 0.6 billion anticipated loss on sale.

• Income for the period was SEK -80m, a marked improvement from SEK -648m in Q2 2023.

Financial highlights

• EBIT margin in Latin America reached 7% on a rolling 12-month basis.

• Cost efficiency contributed SEK 0.3 billion in Q2 and SEK 0.8 billion in H1 2024.

• Cash flow after investments for H1 was negative SEK 1.5 billion, an improvement from negative SEK 2 billion last year.

• Liquidity stood at SEK 32.8 billion at the end of June, including revolving credit facilities.

• SEK 2.3 billion of new long-term debt issued in Q2; $150 million sustainability-linked loan signed.

Outlook and guidance

• Full-year 2024 EBIT expected to be negative, driven by continued negative price effects.

• Price pressure to remain a headwind in both North America and Europe for the rest of 2024.

• Cost savings target for 2024 revised to SEK 4 billion due to higher logistics costs.

• Market demand outlook: North America neutral, Latin America positive, Europe and Asia Pacific negative.

• Significant cost benefits from cost-reduction activities expected in H2 2024.