By Stockholm, 22 July 2021 – Electrolux, the Swedish home-appliance manufacturer, reported an unexpected net loss in the second quarter and announced plans to potentially sell its Zanussi brand and other non-core assets in the next few years. The company believes that these sales could generate around 10 billion Swedish kronor ($973.3 million).
During the second quarter, Electrolux recorded a net loss of SEK648 million, compared to a profit of SEK257 million in the same period last year. Several factors contributed to this result, including a provision of SEK643 million, lower volumes due to weaker market demand, currency fluctuations, labor cost increases, and rising energy prices. Analysts had predicted a net profit of SEK350 million, according to a FactSet poll.
Sales for the quarter declined by 3.2% to SEK32.65 billion, falling short of the consensus estimate of SEK34.05 billion compiled by the company.
The challenging demand environment persisted in the second quarter, driven by reduced consumer purchasing power and a shift towards lower-priced products. Electrolux expects this trend to continue and foresees a negative net price effect starting from the third quarter.
Given these circumstances, Electrolux’s CEO, Jonas Samuelson, emphasizes the importance of strategic portfolio management. The company will explore further simplification and reduction of complexity in its operations.
Electrolux now anticipates negative demand across all regions in 2023.
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