Turkey become Europe’s largest home appliances exporter in 2021, with an 18 percent increase in exports compared to the previous year Turkey exports hit an all-time high of $225.4 billion, with a 32.9 percent surge year-on-year.
Category Archives: Financial
LG Electronics edges out Whirlpool for top household appliance-maker title
LG Electronics recorded an all-time high of 74 trillion won in sales last year, surpassing US electronics giant Whirlpool to become the world’s top producer of home appliances.
LG Electronics announced on Thursday that it made an operating profit of 3.86 trillion won by generating a total of 74.72 trillion won (approximately US$61.9 billion) in revenue last year. Sales rose 28.7% year-on-year, but operating profit fell 1.1%.
This is the first time that LG Electronics’ annual sales exceeded 70 trillion won. The company attributed its record figures to “strong sales of premium home appliances and OLED TVs,” adding that “about 60% of sales, or 44 billion won, came from LG’s home appliance and air solution and home entertainment divisions.”
The company’s home appliances and home entertainment divisions greatly helped in protecting business profits. The two areas recorded operating profits of 2.22 trillion won and 1.99.8 trillion won, respectively.
However, even though 2021 fourth-quarter household appliances sales reached 6.52 trillion won, operating profit topped out at 157.1 billion won. Sales were highest in the fourth quarter, but operating profit was down 44.8% compared to the same period in 2020.
“Increases in costs due to an increase in raw material prices and an increase in logistics costs played a major role,” LG explained.
Whirlpool, on the other hand, announced that it had recorded $21.98 billion in sales last year. Whirlpool is an American electronics company that has competed with LG Electronics for the No. 1 spot in the global home appliance market. If calculated in won, Whirlpool’s total sales last year came to around 25 trillion won — 2 trillion won less than LG Electronics’ household appliances sales of 27 trillion won in 2021
Groupe SEB record year
Thierry de La Tour d’Artaise, Chairman and CEO of Groupe SEB, comments : “Groupe SEB delivered in 2021 a record year, with revenue above €8 billion. This exceptional #growth, better-than-expected and exceeding €1 billion, was driven by the remarkable dynamics of the Consumer business and that of Professional Coffee, which confirmed its recovery. It enables us to offset headwinds and to reach an Operating margin from activity of 10%.I am very proud of these achievements. I would like to share this success with all our Groupe SEB teams and thank them for their mobilization throughout this complex period.”https://www.groupeseb.com/en/news/provisional-2021-sales-record-year
Whirlpool’s financial highlights
Whirlpool Corporation reported Q4 and full-year 2021 earnings. Our full-year financial highlights include:
✔️ 13% year over year organic revenue growth
✔️ Record ongoing EBIT margin of 10.8%
✔️ Record ongoing earnings per diluted share of $26.59
✔️ Record free cash flow generation of $2B
Complete results and non-GAAP reconciliations can be found at:https://investors.whirlpoolcorp.com/news-and-events/news/news-details/2022/Whirlpool-Delivers-Record-Performance-in-2021-and-Guides-Towards-Another-Strong-2022/default.aspx
China’s home appliance sector sees output growth in Jan.-Nov. 2021
China’s home appliance sector saw output growth in the first 11 months last year, data from the Ministry of Industry and Information Technology showed.
During the period, the output of air conditioners and washing machines totaled 197.41 million and 78.33 million sets, respectively, up 11.4 percent and 11.1 percent year on year.
Going against the trend, China’s refrigerator makers saw their output fall 0.2 percent year on year to 82.53 million sets during the period, the ministry said.
In November alone, China’s air conditioner output came in at 16.63 million sets, up 3.7 percent year on year, while the output of washing machines saw a 1.5 percent yearly drop to total 8.44 million , according to the ministry.
Haier signed ESG-linked loan facility for sustainable development
DBS Hong Kong announced that Haier Group has signed its first ESG-linked term loan facility worth about USD 400 million, as part of both parties’ ongoing dedication to promoting sustainable development and a greener future. DBS Hong Kong will serve as Haier’s sole lender and sustainability advisor throughout the loan’s one-year tenor.
This transaction builds upon the strong business relationship that has been established between both companies over the years, as DBS continues to serve as Haier’s core offshore bank and its trusted advisor in its global business strategies. This agreement also positioned DBS Hong Kong as the first bank to pioneer Haier’s ESG-linked financing journey.
The ESG performance indicator for the loan contributes towards China’s pledge to become carbon neutral by 2060. Under the agreement, Haier will commit to reducing its energy consumption per business unit during the loan’s tenor.
De’Longhi, bonus to the employees
An extraordinary bonus was given to all the De’Longhi’s employees and collaborators for the positive results achieved during 2021. The Group’s Board of Directors approved the allocation of a bonus for a total amount of about 11 million euro, which will be paid within the first quarter of 2022.
«The excellent results obtained over the last few quarters – commented Massimo Garavaglia, Chief Executive Officer – are the result of the persistent commitment and extraordinary dedication of the employees in overcoming the challenges in a year of many complexities. The distribution of this bonus is meant to be a recognition of the support and strong spirit of belonging shown by our people towards the Group».
For the current year, as previously communicated, the De’Longhi Group expects to record revenues growing, at constant exchange rates, at a rate that is in the upper end of the 28% – 33% range and an adjusted Ebitda improving vs. last year both in value and as a percentage of revenues. Furthermore, the consolidation of Eversys will bring about a further 2 percentage points of revenues’ growth and an adjusted Ebitda, as a percentage of revenues, in line with the rest of the Group.
GE $118 Investment
Roper Corp., a subsidiary of GE Appliances and Walker County’s largest employer, will invest $118 million to expand its manufacturing operations, creating an additional 600 jobs in LaFayette. Roper Corp. currently employs 2,000 people in the surrounding region.
Gorenje’s Boštjan Pečnik talks Hisense alliance
Boštjan Pečnik, Executive Vice President of manufacturer Gorenje discusses the companies alliance with Hisense and the key developments of the home appliances market ahead of 2022.How has Europe’s major appliance industry fared amid the pandemic?
Following the first half of 2021, there was a positive development in all the European markets. Market demand is still strong in the second half of the year and above our expectations. We expect it to continue during the Christmas period. On the cost side, like all industries, major appliances are also facing a raw material price increase and the growth of logistics and energy costs. Consequently, this is also driving a price increase for the end users. There’s also the challenge of shortages of some materials and components like microprocessors. But I think this price increase will be done step by step and it will not immediately affect performance over the Christmas period.
Which of your recent products have been the most game changing?
In this Covid period, end consumers are searching for appliances that improve convenience. They are looking for appliances that are more environmentally friendly. Therefore, the most interesting ones are those that allow connectivity with smart functions and automation, and also energy efficiency, hygiene and function support. Supporting healthy lifestyles like steam cooking is very interesting. In general sustainability is becoming more and more interesting and important. Legislation in some areas, let’s say it is supporting the launch of sustainable products. But we are also seeing our end consumers really starting to care about sustainability in a positive way. And of course, this is good for our environment.
How have your product lines evolved during the collaboration between Hisense and Gorenje? Has the integration been easy?
We are constantly improving our product competitiveness by adding new products and new product platforms to our product range. We are of course also using product synergies inside Hisense Group, especially in the field of refrigeration and laundry appliances. In 2021 all our main product lines have been growing, which is a good sign. We are aware that good products are key to succeeding on the market and therefore we are increasing investment in R&D. The majority of our integration activities were done in 2019. On the sales side, there’s been the consolidation of sales business units on the European markets, in R&D and product management areas, the implementation of global organisation, and the responsibilities for product development. On the production side, the biggest benefit of this integration has been the integration of global sourcingSo global sourcing has been the main strength of your alliance with Hisense?
It is definitely one of our main strengths. In this time of Covid it has been even more important. In terms of branding, sourcing has been very important. R&D capability is also definitely one of our main strengths, particularly the development of electronics and connectivity. In the field of products, I would also mention our big sized refrigerators, especially for the Gorenje brand, and kitchen appliances for the Hisense brand, because they complement each other’s ranges. On a global scale, we also have new market access and the synergies that come out of that. There’s also our marketing resources and sponsorship of big sporting events like the UEFA Euro 2020 and FIFA World Cup 2022. In terms of branding, we have a clear strategy for the brand portfolio on the global market, and in the field of major domestic appliances, we will further develop Hisense, Gorenje’s brand, and in the premium segment, the ASKO brand.
Are you launching any new products in preparation for the holiday season?
Yes, we are launching a lot of new products. If I start with refrigeration, we will be launching our new wi-fi combi and a retro style combi, our flagship product. Our new laundry products with a refreshed look and improved performance are also important. The biggest novelties are a totally new plug for built-in ovens for the Hisense and Gorenje brands we call Celsius cooking. It’s a premium induction smart cooking ecosystem. That brand will also be launched during this period, and many others will follow in the first quarter of 2022.
Finally, what are your mid-to-long term goals in Europe?
We are improving our position in all product categories and we will continue to strengthen our market position. Our goal is to become one of the leading manufacturers of major appliances and solutions in the global market. And as I mentioned we will further develop our brands Hisense, Gorenje and ASKO.
For more information on Gorenje, click here. Listen to Mr Pečnik’s full IFA Tech Talk, the Official IFA Podcast interview here and also available on:
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Haier Growth in Thailand
Encouraged by its high sales growth, he said the company plans to raise its spending budget next year to 850 million baht, up by more than 30% from this year.
The budget will be used largely for marketing, renting a new warehouse for its imported products, and modernising its dealer shops. A new high-end brand called Casarte under the Haier Group will be introduced to Thailand by the middle of next year, said Mr Thanes.
The company also plans to launch 50 new Haier smart home and high-end product lines next year to cater to all generations of consumers. He said Haier Thailand wants to expand its business via online marketing to cover all channels to meet its growth targets, hiring about 300 new staff.
In addition, Haier plans to extend Yudee, a free monthly instalment scheme via its own app, to include refrigerators, washing machines, wine refrigerators and TVs.
Mr Zhenghui said he envisaged opportunities for greater penetration of top-tier and luxury markets to drive sustainable growth, after Thai consumers become accustomed to Haier products connected via the Internet of Things.
“However, the pandemic is not over yet. We have to steer our business carefully with greater resilience and agility, being ready to adjust to changes so our products are distributed and sold as they were in the pre-pandemic days,” he said.
Mr Thanes said the home appliance market is expected to grow by 3-4% to 86 billion baht next year, compared with 0.3% growth this year and a current value estimated at 84 billion baht.
“Consumer spending has gradually improved since the country’s reopening in November,” he said.
“The outbreak of the Omicron variant has not affected consumer purchases of electrical goods so far. However, we have to monitor the situation in the first quarter next year.”
Piyasak Sribua, the company’s sales director, said apart from Haier, the company plans to roll out more products under the Candy Italian electrical appliances brand, managed by a company within the Haier group.
The target market is the younger generation, including university students and Gen Y and Gen Z professionals. Product highlights include Candy water heaters, Candy kitchenware and Candy freezers.
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