Midea Group closed 2023 with an 8.1% growth in turnover, reaching 373 billion yuan (around 48 billion euros) and above all a boom in cash flow: + 67% and in profits: + 14% at 33.7 billion yuan (4.3 billion euros). The gross margin of the Chinese group is in fact around 26-27%. Sales increased both in China (+9.9%) and in the rest of the world (+5.8%). Midea exported 151 billion yuan (19.5 billion euros).
Midea has 45% of the world air conditioning compressor market and is a leader in the Chinese washing market but is increasingly present in advanced technological sectors such as industrial automation and green technologies.Midea products have been exported to more than 200 countries and regions around the world, and the company continues to expand its production facility abroad, promoting the construction of production centers in Indonesia, India, Thailand, Brazil, Mexico, Italy , Egypt
Category Archives: Financial
Whirlpool Corporation Completes Major Milestone
Whirlpool Corporation today announced the completion of its transaction with Arçelik A.Ş (“Arcelik”). This marks a significant step in Whirlpool’s portfolio transformation and is expected to provide considerable opportunities to maximize value.
The transaction creates a new European appliance company by combining Whirlpool Corporation’s European major domestic appliance business with Arcelik’s major domestic appliance, consumer electronics, air conditioning, and small domestic appliance businesses. Whirlpool Corporation now owns 25 percent of this new entity, called Beko Europe B.V., and Arcelik owns 75 percent¹. Whirlpool Corporation is retaining ownership of InSinkErator and its EMEA KitchenAid small and major domestic appliance business. Separately, Whirlpool also completed its previously announced sale of Whirlpool’s Middle East and Africa business to Arçelik A.Ş.Beko Europe B.V. will have combined revenue of approximately €5.5² billion based on 2023 results. The company will be well-positioned to deliver value to consumers through attractive brands, sustainable manufacturing, product innovation and consumer services.
The transaction is expected to deliver more than $750 million in net present value of future cash flow value, in addition to unlocking $200-$300 million of incremental free cash flow in 2025. Additionally, Holger Gottstein and Gilles Morel, two members of Whirlpool Corporation’s Executive Committee, will be appointed to the board of directors of Beko Europe B.V.
Whirlpool Corporation will focus on its strong positions in the Americas and India, with its No. 1 share position in the major domestic appliance businesses for both North and South America. Additionally, new products, including those from the higher-margin KitchenAid small domestic appliance business, are expected to continue to be a key driver for share and profit growth
Sweden’s Electrolux Torbjorn Loof as new chairman
Torbjörn Lööf is now Chairman of the Board of the Electrolux Group.Torbjörn was CEO of Inter IKEA Holding from 2013-2020 and is currently Board member of Husqvarna and Essity among others.
“Electrolux Group has been innovating and improving people’s lives in homes around the world for over 100 years. I look forward to being part of the journey ahead in my role as Chairman, working with the board, Jonas and the management team to drive sustainable profitable growth for the company and shareholders,” says Torbjörn
Chinese firms target Korea with premium home appliances
Chinese home appliance manufactures such as Haier, Midea, and Xiaomi have begun retailing their products on South Korea’s largest online marketplace, Coupang, and offer after-sales service (AS) through the platform. Additionally, China’s Roborock led the domestic robot vacuum cleaner market last year with its product priced over 1.6 million won. Once perceived as “cheap” and budget-friendly, Chinese home appliances are now targeting the Korean market few years ago, Chinese electronics sold in Korea mainly consisted of small appliances like humidifiers and hair dryers, or low-cost imitations of premium products. Recently, however, premium items such as robot vacuum cleaners, high-end TVs, and refrigerators have emerged in the local market. The design and quality of these products are reported to be on par with Korean and Japanese counterparts, posing a significant threat to Korean companies’ premium offerings. A senior appliance company official noted that Chinese products are also aggressively entering the global premium market, utilizing a strategy similar to the approach South Korea once employed to catch up with Japanese appliance
Currys takeover speculation “seems to have passed
The Currys board rejected two Elliott bids, claiming they “significantly undervalued” the company, while JD.com ended up not making an offer. The two companies walked away earlier this month, quashing speculation over an imminent takeover of the chain.
Mr Baldock said the takeover speculation “seems to have passed”,
V-ZUG increases profitability despite a difficult market situation
Full-year results for 2023:
Declining sales volumes, increased gross profit and targeted cost management
In 2023, the V-ZUG Group generated net sales of CHF 585.4 million, 8.0 % lower than the previous year (CHF 636.3 million). During the pandemic-induced boom in 2021–2022, sales volumes were extraordinarily high. In addition to this base effect, inflation, rising interest rates and a corresponding decline in demand had a negative impact on sales volumes in the reporting year. This development was exacerbated by the reduction of inventory levels at V‑ZUG partners. To address the market-related decline in volume, additional measures to increase sales and cost-saving initiatives were implemented that had a positive effect on the operating result and cash flow. The operating result (EBIT) amounted to CHF 16.8 million (previous year: CHF 10.3 million, + 63.1 %). Free cash flow improved to CHF 18.2 million (previous year: CHF – 52.2 million). For the year 2024, V-ZUG expects the market environment to remain challenging and continues to be committed to its medium-term targets through investments in market development and positioning, production as well as ongoing projects to increase innovation and efficiency.
De’Longhi ends 2023 with an 82% increase in net profit
Fourth quarter with clear growth allowed De’Longhi to surprise the markets with an expanding balance sheet in terms of margins and cash generation the Group increased sales by 4.7% (8% at constant exchange rates) with Ebitda margins equal to 16.6% of revenues (a marked improvement compared to 14.6% last year). In the 12 months, turnover fell by 2.6% (-0.2% at constant exchange rates) but Ebitda went from 11.5 to 14.4% of revenues.Net profit almost doubled from 364 to 663 million euros and 40% will be turned over to shareholders who will receive a dividend of 0.67 euros.The growth of Eversys’ professional coffee machines was significant, maintaining a sustained expansion trend throughout the year, achieving a turnover of over 30% in the twelve months.
UK Antitrust gives green light to the joint venture between Whirlpool and Arçelik: Beko Europe is born
Arçelik’s main goal is to create the future leader of the home appliance industry, and certainly this agreement marks a significant step towards that direction. In any case, the new industrial entity, Beko Europe, will include a wide range of brands of great relevance in the sector, ranging from Whirlpool itself to Indesit, Bauknecht, Privileg, Ignis, Grundig, Arctic, Elektrabregenz, Flavel and Leisure, Hotpoint, Altus and Blomberg. This diversification of the brand portfolio will provide a unique opportunity for the new joint venture to reach a wide range of consumers and consolidate its presence in the global home appliance market The agreement will also have an important impact on Italian territory. Arcelik will provide two factories in Romania to the new company, while Whirlpool will move its European large household appliances business unit, which includes seven factories in Europe and employs a total of 14,000 employees. In Italy, the operation will involve various factories, such as those in Siena for freezers, Comunanza (Ascoli Piceno) for washing machines and washer-dryers, Melano (Ancona) for hobs and Cassinetta (Varese) for built-in refrigerators and microwave ovens. Furthermore, the Carinaro (Caserta) site will be involved with a logistics warehouse and a reconditioning center for damaged Whirlpool products.
Currys should hold out for £1bn takeover offer, says shareholder
Currys shareholder has said the retailer should hold out for an offer worth £1bn amid the ongoing takeover saga between Waterstones owner Elliott Advisors and Chinese online shopping giant JD.com.
JO Hambro Capital Management (JOHCM) UK Equity Income fund, which is a top 10 shareholder, said an offer between 80p and 100p per share would be “acceptable”.
iRobot narrows its loss
IRobot reported a fiscal fourth-quarter net loss of $63.6 million, or $2.28 a share, compared with a net loss of $84.1 million, or $3.07 a share, in the same quarter a year ago. Adjusted earnings were a loss of $1.82 a share.
Revenue dropped to $307.5 million from $357.9 million in the year-ago quarter Shares of iRobot have plunged 71% over the past year, Last month, Amazon.com called off its planned acquisition of iRobot following opposition from the European Union. IRobot also said it would lay off 31% of its employees, or about 350 people, and that its chief executive, Colin Angle, had stepped down
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