Latest news with #Electrolux
Yahoo
6 days ago
- Business
- Yahoo
Electrolux AB (ELRXF) Q2 2025 Earnings Call Highlights: Margin Improvements and Strategic Challenges
Operating Margin: Improved from 1.2% to 2.5%. Organic Growth: 1.8%, driven by North America and Latin America. Cost Efficiency: Achieved SEK0.6 billion in the quarter, totaling SEK2 billion for the first half of the year. North America Organic Growth: 4.1%. Latin America Margin: Above 6.6%. Sale of Kelvinator Brand: SEK180 million. Net Debt to EBITDA: 3.5 times. Operating Cash Flow: Negative SEK741 million. Liquidity: SEK28 billion, including RCFs. Capital Expenditures: Estimated between SEK4 billion and SEK5 billion for full year 2025. Warning! GuruFocus has detected 5 Warning Signs with ELRXF. Release Date: July 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Electrolux AB (ELRXF) outperformed the market with its three major brands: Electrolux, AEG, and Frigidaire. The company improved its operating margin from 1.2% to 2.5%, with a positive margin in North America. Electrolux AB (ELRXF) reported an organic growth of 1.8%, driven by North America and Latin America. The company achieved cost efficiencies, delivering an additional SEK0.6 billion year-over-year. Electrolux AB (ELRXF) received 16 design awards, highlighting its strong design capabilities and innovation. Negative Points The European market remains depressed, with a 1% decline and volumes 11% lower than in 2019. Electrolux AB (ELRXF) faced negative price developments in Europe due to high competition and promotional pressure. The company experienced currency headwinds in Brazil and Argentina, impacting financial performance. Electrolux AB (ELRXF) reported a negative operating cash flow after investments of SEK741 million in the quarter. The company is facing challenges with tariffs in North America, impacting cash flow and requiring price adjustments. Q & A Highlights Q: Can you explain the difference in competitive landscapes between the US and Europe, and how it affects pricing strategies? A: Yannick Fierling, CEO, explained that while the competitive landscape is similar in both regions, the reaction to geopolitical uncertainty has been different. In Europe, consumer confidence is lower, leading to intense promotional activities, whereas North America has shown resilience despite inflation. Electrolux has been able to increase prices in North America to offset tariffs, a strategy that has been successful despite not all competitors following suit. Q: How is Electrolux managing cost-cutting efforts, and what can be expected in the second half of the year? A: Yannick Fierling noted that Electrolux achieved SEK2 billion in cost efficiencies in the first half of 2025, with a target of SEK3.5 billion to SEK4 billion by year-end. The company is focusing on product cost reduction and better sourcing. Despite a strong second half in 2024, Electrolux expects continued year-over-year improvements in cost efficiencies. Q: What is the outlook for marketing expenses, especially with new product launches like the pizza feature in the US? A: Yannick Fierling and Therese Friberg, CFO, indicated that marketing expenses will increase significantly in the second half of 2025 to support new product launches. They emphasized the importance of marketing in driving growth and innovation, with a focus on ensuring a return on investment. Q: How is Electrolux handling the impact of tariffs in North America, and what are the expectations for the second half? A: Therese Friberg explained that while tariffs have impacted cash flow, Electrolux has offset these costs through price increases. The company anticipates a higher tariff impact in the third quarter but remains committed to further price adjustments to fully compensate for tariffs. Q: Are there any signs of recovery in the European market, particularly in the new build segment? A: Yannick Fierling stated that there are no significant signs of recovery in the European new build segment. Despite lower interest rates, construction activity remains subdued, impacting Electrolux's margins due to its strong presence in the kitchen and construction sectors. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Economic Times
6 days ago
- Business
- Economic Times
European shares end flat as markets assess earnings flurry
European shares were unchanged on Friday, as losses in heavyweight healthcare shares were countered by an advance in oil and gas stocks, closing out a busy week filled with corporate earnings from around the continent. ADVERTISEMENT The pan-European STOXX 600 index held steady at 547 points, clocking marginal weekly losses. Regional bourses were mixed with Germany's benchmark DAX dropping 0.3%, while the UK's blue-chip FTSE 100 gained 0.2%. With corporate earnings gaining steam, investors are closely examining corporate guidance to see how firms are adjusting to the shifting U.S. tariff policy, ahead of the August 1 trade deadline. "Earnings misses in Europe are being punished by more than history would suggest, pointing to greater scrutiny after a remarkable rally year-to-date," said Laura Cooper, head of macro credit and investment strategist at Nuveen. "How corporates are navigating tariff uncertainty, potentially weaker demand, and supply chain dynamics will be in focus, though a message of past-peak tariff enthusiasm could prop up sentiment and drive greater upside." ADVERTISEMENT On Friday, Swedish mining equipment maker Epiroc dropped 9.2% after its second quarter results missed market expectations. Atlas Copco also fell 7.8% after the Swedish industrial group reported second-quarter adjusted operating profit below market expectations and a decline in orders. ADVERTISEMENT There were bright earnings as well, with Saab jumping 16.4% after posting higher-than-expected second-quarter earnings and raising its sales outlook. Getinge added 6% after the Swedish medical equipment maker reported second-quarter core earnings above market expectations. ADVERTISEMENT Industrials was the best performing STOXX sub-sector this week, while automobiles was the laggard this week. On Friday, healthcare stocks were the top losers with British drugmaker GSK down 4.6% after a U.S. FDA advisory panel recommended against approving its blood cancer drug Blenrep due to concerns over side effects. ADVERTISEMENT Helping offset some losses, oil and gas shares added 0.6% and food and beverages advanced 0.8%. Among other moving stocks, Danish wind turbine maker Vestas jumped 15% after J.P. Morgan upgraded its rating to "overweight" from "neutral". Iveco climbed 8.3% after a Reuters report that Italy's Agnelli family is in talks over the possible sale of the truck maker with two mentioning Tata Motors as a potential buyer. Swedish home appliances maker Electrolux slumped 14.3% after poor second-quarter performance in Europe and India's Reliance Industries said its retail unit acquired home appliance maker Kelvinator from Electrolux. (You can now subscribe to our ETMarkets WhatsApp channel)
Business Recorder
6 days ago
- Business
- Business Recorder
European shares end flat as markets assess earnings flurry
FRANKFURT: European shares were unchanged on Friday, as losses in heavyweight healthcare shares were countered by an advance in oil and gas stocks, closing out a busy week filled with corporate earnings from around the continent. The pan-European STOXX 600 index held steady at 547 points, clocking marginal weekly losses. Regional bourses were mixed with Germany's benchmark DAX dropping 0.3%, while the UK's blue-chip FTSE 100 gained 0.2%. With corporate earnings gaining steam, investors are closely examining corporate guidance to see how firms are adjusting to the shifting US tariff policy, ahead of the August 1 trade deadline. 'Earnings misses in Europe are being punished by more than history would suggest, pointing to greater scrutiny after a remarkable rally year-to-date,' said Laura Cooper, head of macro credit and investment strategist at Nuveen. 'How corporates are navigating tariff uncertainty, potentially weaker demand, and supply chain dynamics will be in focus, though a message of past-peak tariff enthusiasm could prop up sentiment and drive greater upside.' On Friday, Swedish mining equipment maker Epiroc dropped 9.2% after its second quarter results missed market expectations. Atlas Copco also fell 7.8% after the Swedish industrial group reported second-quarter adjusted operating profit below market expectations and a decline in orders. There were bright earnings as well, with Saab jumping 16.4% after posting higher-than-expected second-quarter earnings and raising its sales outlook. Getinge added 6% after the Swedish medical equipment maker reported second-quarter core earnings above market expectations. Industrials was the best performing STOXX sub-sector this week, while automobiles was the laggard this week. On Friday, healthcare stocks were the top losers with British drugmaker GSK down 4.6% after a US FDA advisory panel recommended against approving its blood cancer drug Blenrep due to concerns over side effects. Helping offset some losses, oil and gas shares added 0.6% and food and beverages advanced 0.8%. Among other moving stocks, Danish wind turbine maker Vestas jumped 15% after J.P. Morgan upgraded its rating to 'overweight' from 'neutral'. Iveco climbed 8.3% after a Reuters report that Italy's Agnelli family is in talks over the possible sale of the truck maker with two mentioning Tata Motors as a potential buyer. Swedish home appliances maker Electrolux slumped 14.3% after poor second-quarter performance in Europe and India's Reliance Industries said its retail unit acquired home appliance maker Kelvinator from Electrolux.
Time of India
6 days ago
- Business
- Time of India
Appliances race: Reliance Retail buys Kelvinator brand
File photo MUMBAI: Reliance Retail has acquired home appliances brand Kelvinator for India from Sweden's Electrolux as it looks to expand market share in the consumer durables space, stepping up competition against global and local giants such as Samsung and Tata's Voltas in the market. Reliance Retail has been holding manufacturing and distribution rights for the brand in India since 2019 through a licensing deal signed with its Swedish owner. The company did not disclose the financial specifics of the deal. In an earnings update, Electrolux, however, said that it has realised a gain of about $18.5 million (around Rs 160 crore) from the divestment of the Kelvinator brand in India. Alicensing deal is typically signed for a certain period of time; a full acquisition expands a company's scope and coverage for the brand. 1st entered in 1960s Kelvinator first entered India in 1960s and became popular in the local market in the 1970s and 80s before competition in the space intensified. The brand has had a chequered history in India — Whirlpool for India acquired the brand in 1995 to access the refrigerator category. Later, it went on to get acquired by Videocon in the mid 2000s, eventually being relaunched by Reliance Retail in 2019. One of Reliance's key growth strategies has been to revive iconic brands and launch them in the market. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You To Read in 2025 Blinkist: Warren Buffett's Reading List Undo Before Kelvinator, it has acquired homegrown brands like Campa and Velvette. Besides, Reliance Retail through its subsidiary Reliance Brands has also been building a portfolio of global labels as more consumers with higher disposable incomes seek better choices. In 2019, Reliance Brands acquired Hamleys marking the first acquisition of a global retail brand. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Business Times
6 days ago
- Business
- Business Times
Europe: Shares end flat as markets assess earnings flurry
EUROPEAN shares were unchanged on Friday, as losses in heavyweight healthcare shares were countered by an advance in oil and gas stocks, closing out a busy week filled with corporate earnings from around the continent. The pan-European Stoxx 600 index held steady at 547 points, clocking marginal weekly losses. Regional bourses were mixed with Germany's benchmark DAX dropping 0.3 per cent, while the UK's blue-chip FTSE 100 gained 0.2 per cent. With corporate earnings gaining steam, investors are closely examining corporate guidance to see how firms are adjusting to the shifting US tariff policy, ahead of the Aug 1 trade deadline. 'Earnings misses in Europe are being punished by more than history would suggest, pointing to greater scrutiny after a remarkable rally year-to-date,' said Laura Cooper, head of macro credit and investment strategist at Nuveen. 'How corporates are navigating tariff uncertainty, potentially weaker demand, and supply chain dynamics will be in focus, though a message of past-peak tariff enthusiasm could prop up sentiment and drive greater upside.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up On Friday, Swedish mining equipment maker Epiroc dropped 9.2 per cent after its second quarter results missed market expectations. Atlas Copco also fell 7.8 per cent after the Swedish industrial group reported second-quarter adjusted operating profit below market expectations and a decline in orders. There were bright earnings as well, with Saab jumping 16.4 per cent after posting higher-than-expected second-quarter earnings and raising its sales outlook. Getinge added 6 per cent after the Swedish medical equipment maker reported second-quarter core earnings above market expectations. Industrials was the best performing Stoxx sub-sector this week, while automobiles was the laggard this week. On Friday, healthcare stocks were the top losers with British drugmaker GSK down 4.6 per cent after a US FDA advisory panel recommended against approving its blood cancer drug Blenrep due to concerns over side effects. Helping offset some losses, oil and gas shares added 0.6 per cent and food and beverages advanced 0.8 per cent. Among other moving stocks, Danish wind turbine maker Vestas jumped 15 per cent after JPMorgan upgraded its rating to 'overweight' from 'neutral'. Iveco climbed 8.3 per cent after a Reuters report that Italy's Agnelli family is in talks over the possible sale of the truck maker with two mentioning Tata Motors as a potential buyer. Swedish home appliances maker Electrolux slumped 14.3 per cent after poor second-quarter performance in Europe and India's Reliance Industries said its retail unit acquired home appliance maker Kelvinator from Electrolux. REUTERS
