STOCKHOLM, July 20, 2021 /PRNewswire/ -- Highlights of
the second quarter of 2021
- Net sales increased to SEK
30,303m (23,476) corresponding to an organic sales growth of
39.1% supported by strong market demand in all business areas. Last
year's second quarter was severely impacted by the
pandemic.
- Operating income increased to SEK
1,983m (-62), corresponding to a margin of 6.5% (-0.3).
Strong price execution and favorable product mix were important
drivers.
- Income for the period amounted to SEK
1,383m (-141) and earnings per share was SEK 4.81 (-0.49).
- Operating cash flow after investments was SEK 1,456m (122).
- The Board has decided on an adjusted dividend policy of
approximately 50% of annual income and proposed an automatic share
redemption of SEK 17 per share, as
well as announced an intention to resolve on share buybacks over
time.
President and CEO Jonas
Samuelson's comment
In the second quarter, we continued to benefit from a favorable
market, strong price momentum and demand for our innovative
products. Operating income amounted to SEK
1,983m, corresponding to a margin of 6.5%, and organic sales
growth was 39.1%. A year ago, restrictions relating to the
coronavirus pandemic resulted in significant volume drops, which we
partly mitigated through temporary cost actions. Compared to second
quarter of 2019, organic sales growth was 16.4%.
Strong demand together with global supply shortages, especially
of electronic components, continued to be successfully addressed
through my colleagues' hard work and tight collaboration with our
suppliers. However, production efficiency and demand mix matching
were negatively impacted by irregular deliveries. The market for
electronic components is expected to be somewhat more constrained
in the third quarter and, hence, we anticipate challenges to fully
meet the market's product mix requirements. We continue to have a
close dialogue with our suppliers to mitigate these supply
challenges as we expect the situation to remain uncertain for an
extended period of time.
We continue to fully offset the headwind from external factors,
electronic components and logistics through price and we expect
that to be the case for the full year as well. We have announced
and started implementing additional price increases, taking effect
gradually throughout the rest of the year. This as costs for raw
materials, electronic components and logistics are increasing
further, resulting in increased pressure on cost efficiency and
external cost factors.
We maintain our 2021 full year regional market outlook, even
though visibility remains limited due to the ongoing pandemic.
Market demand is expected to begin to normalize during the second
half of 2021, but with significant regional variances driven by
pandemic developments and impacts from stimulus programs. The
global supply challenges experienced in the first half are expected
to have a higher impact in the second half of the year.
With improved profitability and high capital efficiency,
Electrolux financial position and balance sheet are very strong.
The significant reengineering and product innovation programs are
progressing well. I am therefore pleased that the Board has decided
that we can combine continued ambitious growth investments with
increased distribution of the value created to our shareholders. As
first steps this will be done through adjusting the dividend policy
to approximately 50% of income, and a proposed automatic share
redemption of SEK 17 per share in the
second half of 2021. Combined with the ordinary dividend already
approved by the AGM, this would mean a total cash distribution of
SEK 25 per share to be paid out in
2021. Going forward, the Board's intention is to complement
ordinary dividends with ongoing share buybacks, initially through
utilizing the existing mandate to repurchase up to 9.4 million
shares until the 2022 AGM.
I am confident that our strategy ensures we remain well
positioned to deliver long-term shareholder value even in rapidly
changing market conditions.
Telephone conference 09.00 CET
A telephone conference is held at 09.00 CET today, July 20. Jonas
Samuelson, President and CEO and Therese Friberg, CFO will comment on the
report.
Details for participation by telephone are as follows:
Participants in Sweden: +46 8
566 426 51
Participants in UK/Europe: +44
3333 000 804
Participants in US: +1 631 9131 422
Pin code: 67236691#
Slide presentation for download:
www.electroluxgroup.com/ir
Link to webcast:
https://edge.media-server.com/mmc/p/spzkrugz
CONTACT:
For further information, please contact:
Sophie Arnius, Head of Investor Relations +46 70 590 80 72
Åsa Öhman, Electrolux Press Hotline, +46 8 657
65 07
This is information that AB Electrolux is obliged to make
public pursuant to the EU Market Abuse Regulation. The information
was submitted for publication, through the agency of the contact
person set out above, at 0800 CET on
July 20, 2021.
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Interim Report Q2
2021 Final
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SOURCE Electrolux