Fourth quarter, October–December 2022
- Net sales amounted to SEK 3,040m (2,309). Sales increased by 31.7%. Organically sales increased by 13.4%. The acquisition of Unified Brands contributed with 10.3%. Currency had a positive effect of 9.6%, and the divestment of the Russian business had an effect of –1.7%.
- EBITA amounted to SEK 324m (164), corresponding to a margin of 10.7% (7.1).
- Operating income amounted to SEK 284m (141), corresponding to a margin of 9.3% (6.1).
- Operating cash flow after investments amounted to SEK 533m (459).
- Income for the period amounted to SEK 204m (129), and earnings per share was SEK 0.71 (0.45). Income for the year amounted to SEK 686m (487), and earnings per share was SEK 2.39 (1.69).
- The Board proposes a dividend of SEK 0.70 (0.50) per share.
Alberto Zanata, President and CEO:
“A solid fourth quarter and 2022
Sales in the quarter increased organically by 13.4% compared to last year and grew 31.7% in total, including the acquired Unified Brands business, the positive impact from currency, and excluding the divestment of the Russian business. Organic sales growth was strong in all regions and the order stock remains at a healthy level.
EBITA for the fourth quarter doubled and amounted to SEK 324m (164) with a corresponding margin of 10.7% (7.1). The higher EBITA was primarily driven by price increases that now are fully compensating raw material cost increases, the contribution from Unified Brands, and increased sales of Laundry.
Operating cash flow after investments in the quarter amounted to SEK 533m (459), supported by a decrease in inventory and trade receivables. Net debt/EBITDA improved significantly and is now at 1.5, compared to 2.3 at the end of the third quarter.
Laundry was very strong with an organic sales growth of 19.4% and an EBITA margin of 18.4% (16.5). The growth was driven by continued good demand, primarily in the US and Europe. Order intake was strong.
Food & Beverage had an organic sales growth of 9.5%, with an EBITA margin of 8.5% (3.0). Although order intake for Food & Beverage was better in the fourth quarter than in the third quarter, demand in Europe remains relatively soft.
The Unified Brands acquisition in December 2021 has delivered sales growth exceeding our expectations, with an EBITA margin being accretive to the Group margin. Further opportunities for cost as well as sales synergies remain.
Electrolux Professional Group is the sustainability leader in our industry. This was again underlined when we recently achieved the highest ranking among the listed companies in our industry on both the climate change list, Carbon Disclosure Project (CDP), and the environmental, social, and corporate governance (ESG) risk rating by Sustainalytics.
In summary, 2022 has been a good year for Electrolux Professional Group despite the uncertain geopolitical situation, high inflation and component shortages. The recovery after the pandemic has continued, and we have significantly strengthened our position in Food in the US, and the Laundry segment continue to demonstrate strength. In parallel, we have also implemented a new organization that reinforces business ownership and agility in the company.
This means that we remain cautiously optimistic heading into 2023. However, as we have previously communicated, the general economic uncertainty, inflation, and negative consumer sentiment still gives reason to be careful and prepared for various scenarios.”
This information is information that Electrolux Professional AB (publ) is obliged to make public pursuant to EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person below, at 08:00 am. CET January 31, 2023.
For more information, please contact Jacob Broberg, Chief Communication & Investor Relations Officer +46 70 190 00 33Electrolux Professional AB year-end report Q4 2022 2023-01-31T07:00:00+00:00