Category Archives: Financial

DOMESTIC APPLIANCE FIRM BOUGHT BY PACIFICA GROUP

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 Kent-based domestic appliance repairs, sales and servicing firm has been bought by industry giant Pacifica Group.

From its premises in Sittingbourne, Autowash has a team of 11 engineers who provide appliance repair cover the to the Kent area, working with a number of high-profile manufacturers.

It supports insurance companies with policy-covered repairs and has contracts with councils, letting agents, housing associations and schools, as well as supporting local charities.

Autowash has been in business since 1985 and employs a total team of 20.

The acquisition is part of Pacifica’s local strategy; creating a network of regional repairers offering consumers and businesses access to directly employed engineers.

It partners with brands such as such as AEG, Zanussi, Electrolux, Sony, Hisense, Hoover Candy, Haier, Servis, Electra and LG, among others.

Autowash is the latest business to join Pacifica Group following its acquisition of Service 87 in Guildford, Highland Appliance Services in Inverness and JK Domestics in Liverpool all taking place in 2022

SCREWFIX ACQUIRES ASSETS OF CONNECT DISTRIBUTION SERVICES LIMITED

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Screwfix, the UK’s leading omnichannel trade retailer and part of Kingfisher plc, today announces it has acquired the stock, intellectual property, contracts and fixed assets of Connect Distribution Services out of administration, for a cash consideration of £3 million, following the appointment of Alvarez & Marsal as administrators.

Connect Distribution Services Limited is the leading retailer of appliance spares, accessories and consumables to both tradespeople and consumers through digital and telephone channels.Screwfix will continue to operate the business as a going concern, acquiring its e-commerce platforms, stock, intellectual property and product data, with over 400 current Connect Distribution Services employees transferring to Kingfisher group.

Connect Distribution Services’ online trading brands, which include well-known sites such as eSpares, BuySpares, 4OurHouse and the Connect Trade Portal, will continue to operate as normal.

There are many opportunities for synergy, with both businesses serving B2B and B2C customers through leading digital and fulfilment platforms. Over time, Screwfix will explore opportunities to enable customers to Click & Collect orders through Screwfix’s convenient nationwide store network. There is also potential to generate synergies with other parts of the Kingfisher Group
Mike Denny, Alvarez & Marsal, Joint Administrator of Connect Distribution Services said: “We are delighted to have completed a sale of the majority of the business and assets of the CDSL group of companies to Screwfix, saving over 400 jobs. We wish the business every success under its new ownership.”

Samsung seeks to overcome downturn with energy-efficient home appliances

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Samsung Electronics on Tuesday unveiled the lineup of its new range of energy efficient Bespoke home appliances, in a move to attract Korean consumers and satisfy strict environmental regulations in Europe and elsewhere.

The tech giant said it will improve its profitability this year with upgraded products equipped with artificial intelligence (AI) technology.

“What consumers are most interested in recently are energy-related functions. So we will overcome the difficulties this year, through our eco-friendly products,” Samsung Electronics Vice Chairman Han Jong-hee said at a press conference.

Samsung Electronics Executive Vice President Choi Ick-soo also said that the company’s energy-efficient products have helped generate growth in sales, especially in the European market.

In the aftermath of the global economic recession, Samsung Electronics suffered a 60 billion won ($46 million) operating loss in its home appliance business during the fourth quarter of last year. This was the first time in seven years that the company suffered a quarterly operating loss in its home appliance business.

Although the vice chairman did not specify the timing of the turnaround, he said that the company expects better earnings during the second half of this year.

According to the company, the new Bespoke appliances use 30 percent less energy than first-class energy-efficiency products. In addition, consumers can further reduce the use of energy, thanks to AI technology, which can analyze how consumers use the products.

“Our washing machines can reduce microbeads from clothes by 60 percent,” Han said. “We will reduce the amount more significantly by launching a microbeads filter this year.”

Samsung Electronics emphasized the fact that it made some parts of its refrigerators and other home appliances with reusable plastic. It also noted that the new Bespoke products are equipped with Samsung’s SmartThings function to enhance connectivity between them.

During the press conference, Samsung Electronics reiterated that it will focus on nurturing the robotics business as one of its new growth engines.

“Engineers at Samsung Research plan to develop a Samsung robot platform,” Han said. “We are preparing to launch the EX1 robot this year, and there is the possibility of further development in our robot vacuums.”

His remarks came as Samsung Electronics’ recent acquisition of shares in Rainbow Robotics sparked expectation that the conglomerate may resume large-scale M&As this year. The vice chairman, however, remained cautious about the speculation.

Instead, he confirmed that Samsung Electronics will be more aggressive in using ChatGPT for its home appliance business.

“As more companies are using ChatGPT, I don’t deny the fact that it has become part of the mainstream,” Han said.

Electrolux says costs cuts on track at North America plants

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Electrolux, Europe’s biggest appliances maker, said on Monday it was on track to slash costs at underperforming plants in North America as part of its ongoing efficiency programme in the region.

“Cost per unit in the Anderson and Springfield factories will significantly improve near-term, reaching competitive cost levels,” the Swedish group said in a statement ahead of presentations to investors later in the day.

“Another key earnings contributor for business area North America is commercial growth in higher value categories, which the investments in new and innovative modular product architectures enable,” it said

Electrolux has invested heavily in its North American plants in recent years, but the pandemic and component shortages have delayed the ramp-up of local production.

The group ahead of the capital markets day in Stockholm reiterated a business and market outlook given in February, and its financial targets.

It last month predicted lower sales volumes in 2023 due to weaker consumer confidence and demand across Europe, North America and Latin America and said it may not be able to fully pass on higher energy and labour costs.

The rival to Whirlpool repeated it had “a clear path to reach” a target that the aftermarket segment will account for 10% of group sales in 2025.

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