Category Archives: Financial

De’Longhi results

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“I am very satisfied with how the Group was able to react in the face of the extraordinarily challenging and complex scenario that arose in 2022 and that affected our entire industrial sector.
The Group has maintained a turnover well in excess of 3 billion Euros, also thanks to the strategic decision to give continuity to investments in communication, in particular with regards to the global campaign on coffee featuring Brad Pitt as De’ Longhi’s brand ambassador for coffee.
Year 2023 begins in a context not very dissimilar from the last part of 2022, which allows us to forecast a progressive improvement in the economic and consumptions’ climate in the second half of the year.” commented CEO Fabio de’ Longhi.

In the 12 months:
• revenues of € 3,158.4 million, slightly down by -2% (-5.9% at constant exchange rates);
• adjusted
Ebitda at € 362 million, equal to 11.5% of revenues (compared to 16% in 2021);
• net profit3 of € 177.4 million, equal to 5.6% of revenues (compared to 9.7% in 2021);
• positive net financial position of € 298.8 million, down by € 126 million compared to the end of 2021,
but strongly recovering in the fourth quarter with a positive cash flow of €270 million.
In the fourth quarter:
• revenues down by 3.9% to € 1,029.8 million (-7% at constant exchange rates);
• adjusted Ebitda at € 150 million and equal to 14.6% of revenues (compared to 14.7% in 2021);
• net profit of € 78 million, equal to 7.6% of revenues (compared to 7.3% in 2021).
The Board of Directors has proposed the distribution of a dividend of € 0.48 per share, equal to a pay out ratio of 41% in line with the Group’s dividend policy.

Electrolux to keep expanding investment in China

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Electrolux Group will continue to expand its investment in China, an executive of the Fortune Global 500 company said recently.

“China is not only the second-largest economy in the world, but also the middle-class consumers here are growing very fast, who are looking for products with good quality to improve the standard of living,”

“This is good for global companies like Electrolux, and this is why we remain highly confident” about the Chinese market, he said.

Electrolux has been expanding its footprint in China over the years, having established manufacturing factories across the country and a research and development (R&D) center in Shanghai. The company has also been in contact with around 100 strategic partners in China.

“Electrolux factory in Hangzhou produces products not only for China, but also for Asia Pacific,” and that the R&D center in Shanghai, one of the companies’ five global R&D centers, develops products tailored for consumers in China.

Over the past three years, China managed to achieve an average annual growth of 4.5 percent, far exceeding the global average. Electrolux also had a good performance during this period.

“By doing business integration, Electrolux China grew the business by 61 percent in 2020 and by 58 percent in 2021,”

“The Chinese market is a strategic market for Electrolux. We will continue to expand our investment in China and further promote the brand influence in China,”

In the eyes of the executive, China’s clear objectives and policies concerning carbon emission and sustainable development will bring great opportunities for Electrolux, which has declared its global commitment to achieving carbon neutrality across its value chains by 2050.

China will actively promote technological progress in relevant fields, adding that he looks forward to in-depth cooperation with Chinese partners in this regard.

Miele increase sales

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In a challenging environment with overall declining markets, the Miele Group has grown once again and reports € 5.43 bn sales in 2022.
As in previous years, we produced, sold and shipped more products than ever before. An above-par contribution to this accomplishment came primarily from eastern European and Asian markets, including China, but long-standing markets such as Australia, Great Britain, the Netherlands and the USA gave a good hand, too. The contribution to turnover coming from outside Germany was 72%.

Middleby grows margins

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Middleby Corporation told investors yesterday that it is well-placed to increase its manufacturing capacity and achieve improvements in production efficiencies after delivering record fourth quarter results.

The owner of brands such as TurboChef, Pitco and Lincat notched up group sales of $1 billion (£828m) during Q4, a 19% increase on the previous year and 14% organically.They have managed to achieve margin expansion over the previous year and sequentially from Q3 as a result of pricing, shifting its product mix towards higher technology solutions and disciplined cost control.

Bluestem Group Acquires Ewbank Products Ltd

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Historic British floorcare manufacturer, Ewbank Products Ltd, has been acquired by electrical appliance company, Bluestem Group.

The origins of Ewbank date back to 1864 when the business, then known as Entwisle & Kenyon Limited, manufactured water meters; later producing washing machines and mangles. In 1889 the first Ewbank carpet sweeper was launched in the United Kingdom.

Bluestem Group licenced the Ewbank brand for the UK in 2019. Since then, they have launched an extended range of corded and cordless vacuums, hard floor cleaners and outdoor appliances. Following the successful partnership with Ewbank to develop the brand in the UK, the two businesses agreed to an acquisition deal for the UK entity and the worldwide trademark, which completed in February 2023.

Electrolux Group has received a Statement of Objections from the French Competition Authority

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The French Competition Authority has issued a Statement of Objections involving various parties within the home appliance sector and where Electrolux France is alleged to have acted in breach of antitrust rules in France between 2009 and 2014.

A Statement of Objections is a formal step in an investigation whereby the investigation services of the French Competition Authority (Autorité de la Concurrence) inform the concerned parties of its preliminary findings (before the case is presented to the judging panel of the French Competition Authority). The Statement of Objections does not prejudge the final outcome of the case.

As previously disclosed in press releases and annual reports, the company became in 2013 the subject of an investigation by the French Competition Authority regarding possible violations of antitrust rules. The Authority has thereafter decided to conduct two separate investigations one of which was completed in December 2018. The Statement of Objections that now has been issued relates to the other investigation.the French Competition Authority’s Statement of Objections it is alleged that various parties within the home appliance sector have breached the antitrust rules. In particular, Electrolux France is alleged to have breached the antitrust rules by conducting resale price maintenance in the home appliance sector between 2009 and 2014 and by exchanging with other parties competitively sensitive information relating small appliances in France between 2009 and 2014.

The Statement of Objections is currently being carefully analyzed and Electrolux is preparing its defense. Nevertheless, given the alleged infringements and the nature of this investigation, it cannot be ruled out that the outcome could have a material impact on the Group’s financial result and cash flow. At this stage it is however not possible to evaluate the extent of such an impact.

This is information that AB Electrolux is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication

STATEMENT BY STANISLAS DE GRAMONT, CHIEF EXECUTIVE OFFICER OF GROUPE SEB:

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2022, in a difficult general economic environment and after a record year in 2021, our sales were globally resilient. We are particularly pleased with our performance in China, where Supor for the first time exceeded the two-billion-euro turnover mark. However, our results were impacted by significant headwinds. In this context, the Group was once again able to demonstrate responsiveness and quickly implement effective action plans to adapt to market developments and protect its profitability.
 

At the same time, and beyond short-term imperatives, we have continued to invest in our strategic levers: product innovation, the international deployment of our champion products, the attractiveness of our brands, and the activation of all distribution channels. No truce either for our investments in our competitiveness – industrial, logistics, information systems -, which are all crucial for the future. I would like to salute and thank the unfailing commitment of all the teams, which has been essential in these achievements.

For the year 2023, visibility remains limited. Despite a first quarter that is anticipated to be down, the Group expects a gradual improvement in sales in its Consumer business, strong revenue growth in Professional sales, as well as an increase in its operating margin for the year as a whole.

We are confident in the continued development of the global market for Small Domestic Equipment and Professional Coffee, in which we continue to strengthen our presence with the recent acquisition of the La San Marco company. We remain convinced of the relevance of our economic model, which will allow us to take full advantage of strong structural demand, a source of growth opportunities for Groupe SEB. 

Electrolux rumours

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There have been rumors about the sale of the Swedish company for some time now

“we don’t comment on rumors,” Electrolux PR manager Paul Palmstedt told the Swedish financial publication Privata Affaerer .

Chinese company Midea had been rumoured to be interested

Electrolux is not sailing in good waters at the moment. It loses on the North American market and does not gain on the European one which is suffering from weak demand. Things are going better in the professional segment and partly in the built-in segment, sure, but the cost base is high and making margins isn’t easy.Midea has repeatedly stated that it sees its future in high value-added productions such as advanced robotics and automotive. It is said that you intend to invest money and intellectual resources in a business like ‘white’ which will be stagnant in the next few years at best.Electrolux collaborates with Midea in China to promote AEG without the need to exchange shares. One can think of a partial entry of Midea into the shareholding structure of Electrolux, or of joint ventures for the marketing in Europe (and in the USA) of products made by Midea but conceived and sold by Electrolux.

MediaWorld: turnover of 2.7 billion euros in fiscal year 2022 (+2.4%)

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Mediaworld announces that it achieved a turnover of 2.7 billion euros (+2.4% compared to the previous year), one of the highest in the thirty-year history of the company and the best of the last ten years . Ebit stood at 26.6 million euros, up by 3.2 million (+13.7%) compared to the 2019 fiscal year (last pre-pandemic). The brand’s 2022 financial year is part of a macroeconomic framework strongly conditioned by various economic factors that have had an impact on the business: from the intensity of the war in Ukraine to the increase in the inflation rate (+8.9% on annual basis in September 2022) following the increase in the cost of energy. Furthermore, the consumer electronics market also recorded a slight contraction (-1.9% in September 2022).

Among the key factors that affected the positive performance of sales, an official note reads, the implementation of a substantial investment plan aimed at upgrading the technological infrastructures and strengthening the stores, with new openings, contributed significantly and renovations of the shops already present in the area. In particular, in 2022 MediaWorld allocated 40.2 million euros to investments, 140% more than the previous year; of these 28.5 million euros were invested for the complete renovation of 22 points of sale, the opening of 3 new stores and the second Tech Village in Rome. Approximately €11.7 million has been earmarked for IT infrastructure improvements including the implementation of the new website launched in July 2022,

Elica record sale’s

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Elica BoD approves the preliminary FY 2022 results.
Second Record Year in a row in terms of sales, EBIT margin, and net profit, despite the most adverse inflationary, demand, and geopolitical scenario of the last decades.
The company was able to improve margins versus last year, despite ~60 million of cost inflation, thanks to the business model flexibility and the agile execution of our turnaround projects.
Looking forward to 2023, it will be an even more challenging year, but we have a clear strategy for both the Cooking and Motor Divisions in terms of products, customers, and regional distribution.