Q1 net loss 1.230 bln crowns vs 588 mln loss (Il Sole 24 Ore Radiocor) - Stockholm, 26 Apr - Swedish appliance maker Electrolux said its first quarter net sales fell to 31.077 billion crowns from 32.734 billion with an organic decrease of 3.7% mainly due to a negative price and lower volumes that were partially offset by a positive mix.

Weaker market demand resulted in lower volumes for the Group except in Latin America where increased consumer demand contributed to higher sales.

The group posted an operating loss of 720 million crowns from a loss of 256 million the previous year with a margin of -2.3% from -0.8%. The North America business unit reported an operating loss of 1.204 billion, mainly due to continued high price pressure, while Latin America continued to perform well, driven by increased consumer demand in Brazil, while market conditions in Europe remained weak. Previously implemented cost efficiency measures contributed positively to earnings by 0.6 billion.

Electrolux posted a net loss of 1230 billion from a loss of 588 million and the loss per share was 4.55 crowns from a loss of 2.18 crowns.

The company said the new organization has been successfully implemented and expanded cost reduction measures are progressing according to plan. Earnings are expected to benefit from this mainly in the second half of 2024.

Electrolux still expects an organic contribution to earnings from volume, price and mix combined for the Group to be negative in full-year 2024. The new market price levels established towards the end of 2023 largely remained in the first quarter. For the full year 2024, the negative price is anticipated to be partially offset by growth in focus categories such as premium laundry and kitchen products under the main brands Electrolux, AEG and Frigidaire.

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(RADIOCOR) 26-04-24 08:45:54 (0172) 5 NNNN