During the presentation of the fourth quarter results, Arçelik communicated the name of the new company that acquired the assets of Whirlpool Emea. This was reported by the Market screener website which quotes Arçelik’s quarterly report presented to shareholders yesterday.
It will be called Beko Europe BV, it will be a company incorporated under Dutch law and will have a production capacity of 24 million household appliances a year. The 20 thousand employees (6 thousand of Beko, added to the 14 thousand of Whirlpool) currently work in the 2 Romanian plants of Beko, in the 14 plants of Whirlpool in Italy, Poland, Slovakia and the United Kingdom, in the 25 offices of the European subsidiaries of Beko and across 38 Whirlpool EMEA locations.
In addition to the brands of the Arçelik group, Beko Europe will own the Hotpoint, Indesit, Bauknecht, Privileg and Ignis brands and will have the license to use the Whirlpool brand for 40 years.
Category Archives: Financial
Arçelik’s sales
Arçelik has published the balance sheet data relating to the fourth quarter of 2022. Sales increased by 74% compared to the corresponding period of 2021 from 22.5 to 39 billion Turkish liras, (1.9 billion euros at current exchange rates) mainly thanks to the internal market.
Exports were depressed in quantity but much more profitable thanks to the weakness of the Turkish lira and the low cost of energy in the group’s plants.
From a published graph it seems to understand that in Italy sales have contracted by about 5%, less than the European average.
Leveraging, i.e. the ratio between assets and debt, decreased in the fourth quarter thanks to the significant cash generation (the gross margin is around 29%).
DE’ LONGHI: -2% TO 3.16 BILLION REVENUES IN 2022,
Excellent news from America (+11%) and Asia (+16%) but in Europe, where the group generates 60% of its turnover, sales fell by 11% in the fourth quarter and by 10% in the whole of 2022 .De’ Longhi closed 2022 with consolidated revenues of 3.16 million euros, a decrease of 2% compared to 2021. In particular, the bad performance in the fourth quarter (-4%) weighed heavily. At constant exchange rates, i.e. without considering the effect of the euro falling against the dollar and other currencies, 2022 turnover would be 6% lower than that of 2021. De’Longhi, like the whole sector, had a good first semester and then suffered from the weakening of the demand for goods in the European area which represents around 60% of sales. In Europe De’Longhi sold 10% less than in 2021.
All non-European markets performed much better, in particular America (+10.8% to 624 million), the Middle East, India and Africa (+7.9% to 197 million) and the rest of Asia (+15.9% to 464 millions).
“ The fourth quarter performance ”, said the Chief Executive Officer Fabio De’Longhi , “ is a prelude to a possible trend in the margins of the year just closed in line with the high part of our guidance’, which estimated an adjusted EBITDA between 320 and 340 million. For 2023 De’ Longhi sees a year with sales ‘slightly down’, with ‘a second half of a slight recovery’ . The consolidated results will be approved by the board on 13 March.
Samsung Electronics and LG Electronics suffered a steep drop in sales of home appliances
Samsung Electronics and LG Electronics are working on special measures to cope with the steep drop in sales of home appliances.
Samsung Electronics has recently divided the Kitchen and Living Development Groups under the Development Team of the Home Electronics Division into five development groups — the Refrigerator, Cooking Equipment, Dishwasher, Clothing Care, and Vacuum Cleaner. The Software Development Group under the Development Team was also subdivided into five groups by product group.
In early 2022, Samsung Electronics sent six executives from the Video Display (VD) and Mobile Experience (MX) Division to the development team of the Home Appliances Division. It also established a next-generation home appliance research team at Samsung Research, a leading research and development organization.
Samsung Electronics has completely overhauled the Home Appliance Division because it recorded a loss of 318 billion won in the fourth quarter of 2022, analysts say.
LG Electronics, the No. 1 global consumer electronics company, is placing a big bet on the electric vehicle business. The company is expected to try to offset the sluggishness in the home appliance sector with sales growth in the electric vehicle business.
IBK Investment & Securities estimated that LG Electronics’ H&A Division’s operating profit plunged from 445.5 billion won in the first quarter of last year to 19.2 billion won in the fourth quarter of the same year. Stock market analysts forecast that Samsung Electronics and LG Electronics will enter a deficit tunnel in both TV and home appliance businesses in the first half of this year.
Unlike the Home Appliance Division, LG Electronics’ VS Division is estimated to have recorded operating profits from the second to fourth quarters of 2022 in a row, recording its first surplus on an annual basis. Its sales also reached 8 trillion won to 10 trillion won in 2022, which is estimated at 10 percent of LG Electronics’ total sales. Since the launch of the VS Business Division in 2013, the proportion of its sales in the automotive electronics domain has never exceeded 10 percent of its total sales. Industry insiders expect LG Electronics’ backlog of orders for electric vehicle business to reach more than 80 trillion won as of the end of 2022.
Fnac Darty
The group has unveiled its first estimates for the year 2022 and forecasts a slight decline in sales, of 1.2% compared to the previous year. In a context where purchasing power is fully affected by inflation, Fnac Darty relies more than ever on its Everyday strategic plan.
Fnac Darty forecasts 2022 sales down 1.2%, while maintaining its gross margin
January 20, 2023, by Sandra Nicoletti
The group has unveiled its first estimates for the year 2022 and forecasts a slight decline in sales, of 1.2% compared to the previous year. In a context where purchasing power is fully affected by inflation, Fnac Darty relies more than ever on its Everyday strategic plan.
Fnac Darty forecasts 2022 sales down 1.2%, while maintaining its gross margin
While the economic context has a direct impact on distribution, the Fnac Darty group is showing resilience and forecasts revenue of around 7,945 million euros for 2022, down 1.2% compared to the year previous. A drop in sales which results from a bad month of December (-55 million euros), but which does not affect the gross margin rate. This should indeed reach 30.2% in 2022, up +80 basis points in one year, supported by a positive product/service mix. “The estimated performance for 2022 demonstrates that the Fnac Darty group has demonstrated good resilience thanks to the commitment of its teams, despite a particularly difficult context for the distribution sector. The group has demonstrated its ability to adapt and has been able to develop its offer to deal with supply difficulties and control its costs in order to minimize the effects of inflation. Compared to 2019, our estimated revenue remains up sharply by +7% and our gross margin rate remains solid. This demonstrates the acuity of our strategic project which, by focusing strongly on customer experience and services, allows us to continue to create value and grow,” says Enrique Martinez.
The group remains mobilized in the execution of the Everyday plan
While current operating income is estimated at around €230 million, free operating cash flow is slightly negative, around -€30 million. A result below the forecasts announced in February 2021, when the Everyday strategic plan was launched. In this context, the Group considers it “unlikely” to achieve its cumulative free operating cash flow target of around €500 million over the 2021-2023 period and is therefore extending this target for 2021-2024. Finally, “the Group remains fully mobilized to pursue the execution of its strategic plan and continue to generate cash in order to ensure its development and a regular return to shareholders in accordance with what was announced during the Everyday strategic plan. This is why Fnac Darty is maintaining its ambition to generate free operating cash flow of at least 240 million euros on an annual basis from 2025,” reads the official press release.
Currys group sales slump 6% as international market pressures intensify
Currys UK and Ireland delivered better than expected profits over Christmas to offset struggling international business.
The group’s like for like sales slumped 6% in the 10 weeks to 7 January as UK and Ireland sales dipped 5%. However, it achieved stronger profits than expected thanks to a gross margin increase and cost cutting.
International like-for-likes fell 7% and plummeted 10% in the Nordics as it continues to be hit by aggressive growth strategies from European rivals.
Profits were below forecast in the market as margins came under pressure.
Despite the further deterioration in its internation business, Currys said it remained confident of hitting its full-year profit guidance of £100m to £125m.
Whirlpool / Arçelik: update
The 75/25 division is only a hypothesis, to be confirmed on the basis of the 2022 financial statements. The new company will be able to use the Whirlpool brand on its products for 40 years. Whirlpool assets in Africa and the Middle East sold for just 20 million
From left: Fatih Kemal Ebiçlioğlu, Consumer Durables Group President of Koç Holding, Marc Bitzer, Whirlpool Cooperation CEO, Hakan Bulgurlu, Arçelik CEO
While the Stock Exchanges gave their judgment on the operation, making Arçelik’s shares rise by 9% in Istanbul and those of Whirlpool in New York by 0.4%, new details emerge from a press release by Arçelik on the fate of Whirlpool Emea’s activities.
Object of the agreement: The agreement includes Whirlpool’s 38 European subsidiaries and 9 manufacturing sites in Italy, Poland, Slovakia and the United Kingdom, as well as Arçelik’s 2 manufacturing plants in Romania and its 25 European subsidiaries. Together, this will translate into a production capacity of approximately 24 million white products annually.
Contractors . Shareholders in the new company are Whirlpool Emea Holdings LLC and Arçelik’s wholly owned subsidiary Ardutch , a Dutch holding company through which Arçelik controls its European operations. The deal will see both Ardutch and Whirlpool transfer their European subsidiaries to the new company Division of shares. After these transfers, it is expected that 75% of the new company will be assigned to Ardutch BV and 25% to Whirlpool. The final ownership ratio post-closing will be determined taking into account the respective 2022 EBITDA, net asset values, net debt and net working capital of the parties.
Size and brand portfolio. The new business is expected to have more than 20,000 European employees. The combined net sales of the Arçelik and Whirlpool subsidiaries are approximately €6 billion, based on the net sales of the companies’ European operations in 2021. The new company will manufacture, sell and provide after-sales services for branded home appliances (including refrigerators , washing machines, vacuum cleaners, etc.) offering consumer choice across a range of Arçelik brands, including Grundig, Arctic, Elektrabregenz, Flavel and Leisure, alongside Whirlpool’s existing brands Indesit, Hotpoint*, Ignis, Privileg and Bauknecht. The company will have regional trademark rights to Arçelik’s Beko, Blomberg and Altus brands and Whirlpool Corporation’s Whirlpool brand for a period of 40 years.The sale of the Whirlpool businesses in Africa and ME. Separately, the parties also agreed to sign a stock purchase and sale agreement within six weeks for Whirlpool to divest its Middle East and North Africa (MENA) portion of the EMEA region to Ardutch (and therefore not to the new company), for a cash amount of 20 million euros. The transaction, when completed, would result in Ardutch acquiring full ownership of two additional Whirlpool subsidiaries located in the United Arab Emirates and Morocco.The comment of Arçelik’s group leader. Levent Çakıroğlu , CEO of Koç Holding (the parent company of Arçelik), commented, “ As Turkey’s largest industrial conglomerate, we continue to strengthen our impact with global success stories ranging from the UK to India, from South Africa to the United States. Today, Koç Group companies export to more than 150 countries. Arçelik, as a respected player in his industry, is taking his vision and ambitions forward with this new independent business. The opportunity for this business to deliver value to European consumers with market leading products through trusted brands and a commitment to sustainability in the home is significant. ”
Czech National Bank Makes New Investment in Whirlpool
Czech National Bank purchased a new position in shares of Whirlpool Co. in the third quarter, HoldingsChannel reports. The fund purchased 6,337 shares of the company’s stock, valued at approximately $854,000.
Several other large investors also recently made changes to their positions in WHR. Kensico Capital Management Corp acquired a new stake in shares of Whirlpool in the 2nd quarter valued at approximately $31,284,000. Alps Advisors Inc. acquired a new stake in shares of Whirlpool in the 2nd quarter valued at approximately $25,303,000. Renaissance Technologies LLC boosted its holdings in shares of Whirlpool by 168.9% in the 1st quarter. Renaissance Technologies LLC now owns 233,557 shares of the company’s stock valued at $40,354,000 after buying an additional 146,700 shares during the last quarter. Invesco Ltd. boosted its holdings in shares of Whirlpool by 21.6% in the 1st quarter. Invesco Ltd. now owns 754,474 shares of the company’s stock valued at $130,358,000 after buying an additional 134,251 shares during the last quarter. Finally, AQR Capital Management LLC boosted its holdings in shares of Whirlpool by 56.5% in the 2nd quarter. AQR Capital Management LLC now owns 271,579 shares of the company’s stock valued at $41,318,000 after buying an additional 98,086 shares during the last quarter. Institutional investors and hedge funds own 92.14% of the company’s stock
Whirlpool to divest most of EMEA ops, form new entity with Turkey’s Arcelik
A new company is born where the whirlpool hold 25% and Arçelik 75%. To whom all activities in the Middle East and Africa go.Whirlpool: minority agreement with Arcelik (Beko) in Europe
Whirlpool Corporation has announced the completion of the strategic review of its business in Europe, the Middle East and Africa (EMEA) and the reaching of a definitive contribution agreement with Arçelik, which in the portfolio owns the Beko brand. Under the terms of the agreement, Whirlpool will contribute its European major appliances business and Arcelik will contribute its white goods, consumer electronics, air conditioning and small appliances businesses, to create a new business entity of which Whirlpool will own 25 % and Arcelik 75%.
Separately, Whirlpool has reached an agreement in principle, also with Arcelik, for the sale and transfer of its Middle East and Africa operations. Whirlpool will continue to own the assets of the EMEA KitchenAid small appliances business.
The combined entity is expected to achieve combined revenues of more than €6 billion and be well positioned to deliver value to consumers through attractive brands, sustainable manufacturing, product innovation and consumer services. The combined businesses are expected to generate cost synergies of more than €200 million.” “Today’s announcement marks another important and decisive milestone in our portfolio transformation,” said Marc Bitzer, president and chief executive officer of Whirlpool Corporation. business and cost synergies through our minority stake”.
The transaction is expected to close in the second half of 2023 and is subject to additional closing requirements, including obtaining regulatory approvals and other customary closing conditions. Whirlpool’s European business met criteria for accounting for sale during the fourth quarter of 2022. Until the closing of the transaction, Whirlpool’s European business will be included in the company’s results. In addition, Whirlpool will have no obligation to provide financing to the new company after the closing of the transaction.
Electrolux loses €180 million in the fourth quarter
Electrolux has forecast that operating profit in the fourth quarter of 2022 will be negative by about -2.0 billion SEK (180 million euros), including non-recurring items of -1.4 billion SEK.
The year-over-year decline in earnings was primarily a result of lower consumer demand and lower inventories both at retailers and at Electrolux. The worst performances were recorded on the North American markets where Electrolux lost around 1.2 billion SEK, as indeed in the third quarter of 2022
Fourth quarter net sales for the Group are estimated at approximately SEK 36 billion, an organic decrease of approximately 8%. Operating profit excluding non-recurring items is estimated for the Group at around -SEK 0.6 billion compared to +SEK 1.6 billion (EUR 140 million) in Q4 2021.
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