Groupe SEB maintains its momentum for a return to historical profitability levels. Consumer business delivered solid organic growth in sales, on par with that of the second quarter, driven by innovation initiatives across all our regions. The Professional business posts very good results thanks to record sales in coffee. The Group enjoyed a number of commercial successes in 2023 with, in particular, the roll-out of major contracts, as well as a solid core business. Hence, they confirm the Group objectives for the full year, respectively mid-single digit organic revenue growth and an increase in Operating Result from Activity of at least 10%.” Stanislas de Gramont , Chief Executive Officer of Groupe
The Electrolux Group continues its cost reduction project in order to improve margins. The goal is to achieve savings of 10-11 billion Swedish crowns (840-920 million euros) in 2024 compared to 2022. In the past the savings target was 7 billion crowns.
Among the measures announced when sharing Q3 results, the group will be reorganized into three regional divisions and two global product lines reporting to the CEO to reduce top management levels.The company posted a third-quarter net profit of SEK123 million from a loss of SEK605 million,Sales fell 5.2% to SEK33.43 billion, versus the SEK34.1 billion
Elica turnover -14% in the first 9 months but margins hold up.The good performance of own brands does not compensate for the continuous slowdown in OEM orders in cooking and recently also in heat pumps Board of Directors of Elica SpA approved the results as of 30 September 2023. Revenues fell significantly: 360 million which means -14% compared to the first 9 months of 2022. The weakness of cooking continued, aggravated by a significant slowdown in the heating motors segment. In this context, Elica managed to defend the margin which remained at 10.4%, no small achievement for an industrial company. In fact, EBITDA fell consistently with sales: -13.4%. The same goes for profits: 9.6 million, i.e. 13.3% less than the first 9 months of last year. Debt did not increase compared to the previous quarter: 47 million.
Cooking: – 14% The Cooking division, which represents 77% of total turnover, recorded a decline of -14.6% (-13.7% at constant exchange rates and scope). The destocking phase in the OEM area continues , recording a significant double-digit contraction. In other words: Elica’s client brands do not sell and therefore produce less and do not buy components. Elica’s own brands perform better than the market and are more profitableDespite a persistent negative scenario, we proactively and quickly addressed unexpected challenges, integrating these variables into our managerial style, rather than playing defense. The actions and projects launched, both at product and distribution level, will give us the possibility of restarting at double speed as soon as the market becomes receptive again and – even in the event of a still difficult scenario – they will be further levers to pull to start again to grow ” declared Francesco Casoli, President of Elica.
LG reported consolidated revenues of KRW 20.7 trillion and operating profit of KRW 996.7 billion in the third quarter of 2023, both the second highest third-quarter figures in the company’s history.
Driven by the major business of home appliances as well as vehicle solutions, LG’s future growth engine, the company accelerated the qualitative growth of its business despite the economic slowdown and prolonged decline in demand. Operating profit increased more than 30 percent compared to the same period last year as well as the second quarter of 2023.Driven by the major business of home appliances as well as vehicle solutions, LG’s future growth engine, the company accelerated the qualitative growth of its business despite the economic slowdown and prolonged decline in demand. Operating profit increased more than 30 percent compared to the same period last year as well as the second quarter of 2023The LG Home Appliance & Air Solution Company has seen significant growth in the B2B area with its HVAC solutions. The company aims to further expand its air conditioning business with heat pumps and ESS in response to the growing demand for eco-friendly and high-efficiency products in North America and Europe. And, launched in the third quarter, LG ThinQ UP 2.0 – a smart home innovation that combines home appliances and subscription services – has already received positive responses from customers and is leading change in the home appliance paradigm.
BSH UK experienced a huge boost to its profits in the last financial year in spite of a decrease in its overall turnover figure.
In its 2022 accounts, just filed with Companies House, the appliance giant revealed that pre-tax profits were up by over 26% on the previous year to £30.2m.
This increase in profit is despite a slight fall in turnover to £811m, roughly 4.4% lower than the previous year.
Whirlpool of India Ltd reported a 10.6% drop in first-quarter profit on Monday, impacted by softer demand. consolidated net profit for the three months ended June 30 fell to 748.8 million rupees ($9.05 million) from 837.3 million rupees a year earlier.
Revenue fell 2% to 20.39 billion rupees, hurting the company’s operating profit metrics.
Elica Spa has approved the results for the first half of 2023 – prepared in accordance with the IFRS international accounting standards. Revenues fell 12% from 290 to 254.5 million. EBITDA has also fallen in line, which continues to represent almost 10% of turnover. Preserving gross margins has been an important success for the group, achieved thanks to strategic initiatives implemented in recent years, such as constant cost control, flexibility deriving from the new production footprint and the “Supply Chain Finance Solution” project for better management of circulating. Margin expansion, with a significant increase of 80 basis points between the prior first and second quarters, confirms the commitment to sustained profitability and operational excellence.Profit fell 38% from nearly $14 million to $8.5 million The Cooking division, which represents 76% of total turnover, recorded a drop of -15%. Also in the second quarter, own brand production partially compensated for a strong reduction in demand in the OEM area
The Engines division, which represents 24% of total turnover, shows the first signs of a slowdown, showing a slight contraction in sales equal to -2.8%. The “ heating ” and “ ventilation ” areas , and in particular the heat pump segment, continue to represent segments with high profitability and significant diversification opportunities. Sales in EMEA, which represents 80% of total revenues, recorded a decrease of -10.9%, thus aligning Elica’s performance with that of the market.
“In a difficult macroeconomic context, the whole group has demonstrated its ability to face challenges with great speed, managing to defend margins and not slow down on strategic projects. We will also face the next few months with the usual passion, being ready to accelerate when the recovery occurs. I am sure that the team, the completion path of the cooking product range and the opportunities of the engine division will support growth in the long term and will continue to create value for shareholders and our stakeholders” . declared Francesco Casoli
During the second quarter Electrolux professional grew profitably taking another positive step towards our financial targets. Overall market demand has held up well in the quarter, and our order stock remains at a good level”, says CEO Alberto Zanata on the Q2/2023 report.EBITA in the second quarter of last year, excluding items affecting comparability of SEK -35m, amounted to SEK 268m, corresponding to a margin of 9.8%. Operating income amounted to SEK 345m (196), corresponding to a margin of 10.9% (7.2). Income for the period amounted to SEK 257m (132), and earnings per share was SEK 0.89 (0.46). Operating cash flow after investments amounted to SEK 462m (88).Contact & head office Electrolux Professional AB interim report Q2 2023 July 21, 2023 Interim reports – Press releases Regulatory Second quarter, April-June 2023
Net sales amounted to SEK 3,153m (2,731). Sales increased by 15.5%. Organically sales increased by 8.3%. Currency had an effect of 7.5%. The divestment of the Russian operations in 2022 had a negative effect of 0.3%. EBITA amounted to SEK 385m (233), corresponding to a margin of 12.2% (8.5). EBITA in the second quarter of last year, excluding items affecting comparability of SEK -35m, amounted to SEK 268m, corresponding to a margin of 9.8%. Operating income amounted to SEK 345m (196), corresponding to a margin of 10.9% (7.2). Income for the period amounted to SEK 257m (132), and earnings per share was SEK 0.89 (0.46). Operating cash flow after investments amounted to SEK 462m (88). Alberto Zanata, President and CEO:
“Another positive step towards our financial targets
During the second quarter we grew profitably taking another positive step towards our financial targets. Sales increased organically by 8.3% compared to last year, and EBITA improved significantly to SEK 385m (233) with a corresponding margin of 12.2% (8.5). The higher EBITA was driven by price, and volume growth in Laundry.
Food and Beverage grew organically by 0.5% compared to last year with an EBITA margin of 12.2% (10.0) Sales grew in Europe, but declined in Americas and in Asia-Pacific. Business in China has not taken off as expected after the postpandemic re-opening. Sales declined in the US, mainly driven by a significant drop in our distribution sales of refrigerators due to destocking among customers. Order intake for the Food & Beverage segment remained at a good level overall despite somewhat softer demand in the US.
Laundry achieved an organic sales growth of 28.5% with particular strength in Europe and the US. The EBITA margin improved to 16.4% (10.4) due to volume and price, while the corresponding quarter of last year was impacted by component shortages. Order intake for Laundry was good.
Samsung Electronics has made public its forecasts for the second quarter of 2023. The resilience of large household appliances can do nothing compared to the weakness in demand for smartphones and above all for chips.
Compared to the previous quarter, the decline is only 6% in sales and 6.4% in profits
In the April-June period, the Korean giant estimates that it had a turnover of 60 thousand billion won (42 billion euros) with a very small profit (1%) of 600 billion won. In the corresponding period of 2022, Samsung Electronics had a turnover of 77,200 billion won (54 billion euros) with a profit of 14 trillion won (almost 10 billion euros). As a result, sales fell 22% year over year and profits fell 95
The main business of Glen Dimplex, the Irish-headquartered heating, cooling and appliance giant, nearly quadrupled its profits last year as the company substantially concluded a period of restructuring. Newly filed accounts for Glen Dimplex European Holdings, which makes up about 60pc of group operations, showed the business made a profit of €42.8m in the year to September 30, 2022, up from just €11m in the previous year.
Glen Dimplex increased turnover by just 4pc in the period to €944m, with growth coming mainly from the group’s energy efficient heating and ventilation products, which are in high demand in the EU because of public policy initiatives. “Encouragingly, the strong profit growth experienced in the 2021/22 financial year has continued into the early part of the 2022/23 financial year and the outlook remains positive driven by strong underlying demand trends, a supportive policy environment and fiscal supports for end users,” the accounts stated.The company, which is owned by the Louth-based Naughton family, has been undergoing a transformation in recent years to focus more on sustainability and the electrification of energy, increasingly via smart tech.The firm sold the well-known consumer appliance business Morphy Richards to long-term Chinese manufacturing partner Xinbao for €185m. Glen Dimplex retained the rights to distribute the brand in Ireland, New Zealand and Australia for 10 years as part of the deal.The shift has seen Glen Dimplex become very busy in terms of mergers, acquisitions and disposals, with the company an active buyer of heating and ventilation businesses
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