After the difficult phase, Groupe SEB resumes growth by 5% in 2024, drawing satisfaction from the sales of Tefal, Moulinex, Krups, Rowenta, Lagostina, Emsa and Wmf also in Western Europe. Little satisfaction from the professional segment, which increases by only 1.4% and does not exceed one billion euros despite the investments of the management.The Professional area in which the group had invested by acquiring the brands La San Marco, Pacojet, Forge Adour and Sofilace and which had driven sales and profits in the difficult years perhaps disappointed with an increase of only 1.4% just under one billion euros (but the operating margin increased by 10%).
Category Archives: Financial
LG drop in profit
LG Electronics logged 6.4 percent drop in operating profit due to slow demand recovery in global home appliances and surge in logistic costs last year, the company said.
The Korean electronics giant posted 3.4 trillion won ($2.4 billion) in operating profit for the full year of 2024, according to its earnings announcement on Thursday, falling short of 3.7 trillion won market consensus compiled by FnGuide.
Its revenue marked a record high of 87.7 trillion won during the same period.
Growth of home appliance and vehicle solutions businesses contributed to the record-high generation of revenue in 2024, the company explained. Its TV and business-to-business sales also improved its sales last year.
Electrolux Group receives EIB loan for development of energy efficient appliances
Electrolux Group has signed a €200 million loan with the European Investment Bank (EIB) to support research, development and innovation (RDI) on more energy-efficient household appliances.
The financing will enable Electrolux Group to develop advanced appliances for food preparation, food preservation, fabric care, and dish care, while also enhancing digital technologies across all product platforms. This support will back the Group’s research aimed at improving performance, user-friendliness, and user experience, as well as reducing energy consumption and resource use for a variety of household goods.
Currys results
Currys has recently highlighted the significant impact of Labour’s tax policies on its financial performance. In its half-year results for the six months ending 26 October 2024, the company estimated that these tax changes could cost up to £32 million.
This figure includes a £9 million increase due to National Living Wage hikes, a £12 million rise in National Insurance contributions, £2 million from inflation-based business rate increases, and up to £9 million in costs passed on from suppliers.
To mitigate these pressures, Currys plans to implement cost-saving measures such as process improvements, automation, offshoring, outsourcing, and overhead efficiencies. However, some price increases are expected to be unavoidable.
Despite these challenges, Currys reported a strong financial performance for the period. Adjusted earnings before interest and tax rose by 52% to £41 million, and group free cash flow increased to £50 million, up by £46 million. Revenue grew by 2% on a like-for-like basis, and the company ended the period with a net cash balance of £107 million.
CEO Alex Baldock expressed optimism about the company’s progress, noting significant growth in profits and cash flow, and a robust balance sheet. He highlighted the company’s preparedness for the peak trading period, with strong stock levels and competitive deals. Baldock also pointed out the rising demand for AI laptops, where Currys holds over 75% market share in the UK.
Looking ahead, Baldock remains confident in Currys’ ability to continue its growth trajectory, despite the new challenges posed by government policies. He emphasized the company’s focus on maintaining high levels of colleague engagement, increasing customer satisfaction, and growing cash flow for shareholders. Baldock also expressed gratitude to the Currys team for their hard work and dedication in driving the company’s success.
China’s trade-in policy boosts home appliance sales of over 200 billion yuan
China’s home appliance trade-in policy has boosted consumer spending, generating over 200 billion yuan (about 27.8 billion U.S. dollars) in sales and facilitating the purchase of over 45 million products by Friday.
The Ministry of Commerce’s home appliance trade-in platform reveals that around 30 million consumers have purchased subsidized products from eight designated categories, including refrigerators, televisions and computers, since the policy took effect.
LG revolutionizes its structure and divides itself into independent companies
The home appliance division will be renamed Home Solutions. The HVAC area will enter a new independent company: Eco Solutions in
addition, display-based operations, including TV, monitor and signage, will be integrated to promote synergies and expand platform-based service businesses. New growth drivers will be strategically transferred to companies with greater corporate relevance, ensuring more stable support and creating synergies between business areas.
Going forward, all four companies will incorporate the word ‘Solution’ into their names, reflecting LG’s evolution into a smart living solutions provider that connects and enhances customer experiences across various environments, including homes, commercial spaces, mobility and virtual platforms.
Frasers will give the company a 6.4% stake in Marks Electrical
Mike Ashley’s Frasers Group has made a strategic move by acquiring a £3 million stake in Marks Electrical, boosting the online white goods retailer’s shares in early Tuesday trading Earlier in the month, Marks Electrical reported a dip in half-year profits as consumers opted for less expensive products due to financial pressures, with adjusted earnings falling to £2 million for the six months ending September 30, compared to £2.3 million in the previous year.
This occurred even though revenue rose by 9.3% to £58.8 million for the half-year period
Beko Europe Shifts Production: A Predictable Move
Beko Europe has announced the closure of some European operations, relocating production elsewhere. This decision aligns with the Turkish manufacturer’s long-standing aggressive pricing strategy. A quick online search reveals washing machines priced as low as €270. Given that raw material costs are consistent globally, and Italy faces some of the highest energy costs in the world, it’s no surprise that Beko would choose to produce in Turkey, where labor costs are a fifth of those in Italy.
Beko’s move is a logical step in maintaining its competitive edge. The real oversight lies with those who now invoke goldenpower to keep unprofitable factories running. Political leaders should have steered the sale of Whirlpool’s assets towards companies with different market strategies. Instead, they are now attempting to rectify a situation that has been deteriorating for years.
In the Fabriano area, some are calling for drastic measures, but such actions are futile. What is truly needed are rational and forward-thinking industrial policies.
Marks Electrical profit fall
Marks Electrical Group plc (-13.7%) fell sharply after reporting a near halving of profits for the six months to 30 September, despite a 9.3% rise in sales. The company highlighted a 9% drop in average order value, as customers shifted to more affordable, non-premium products
De’Longhi’s revenues and profits grow
De’Longhi ‘s earnings in 2024 will be even better than expected: the company has raised its guidance for the year, estimating revenue growth in the range of 11%-12% in 2024 versus the previous 9%-11%, with an adjusted EBITDA of between 540-550 million euros versus the 500-530 million previously expected.The group’s net profit for the first nine months was 173.8 million euros, equal to 7.8% of revenues, improving from 7.1% previously and with an increase of 22.2%. In addition, De’ Longhi generated a positive cash flow, before dividends and extraordinary transactions, of 35.6 million euros.
As of September 30, 2024, the Group’s net financial position was positive at 266.1 million euros
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