AB Electrolux (publ) (ELUXY) Q3 2024 Earnings Call Transcript

AB Electrolux (publ) (OTCPK:ELUXY) Q3 2024 Earnings Conference Call October 25, 2024 3:00 AM ET

Company Participants

Oscar Stjerngren – Investor Relations
Jonas Samuelson – President & Chief Executive Officer
Therese Friberg – Chief Financial Officer, Head of Finance, Legal and IT

Conference Call Participants

Uma Samlin – Bank of America
Gustav Hageus – SEB
Björn Enarson – Danske
James Moore – Redburn Atlantic
Timothy Lee – Barclays
Mads Lindegaard Rosendal – Danske Bank
Martin Wilkie – Citi
Johan Eliason – Kepler Cheuvreux

Jonas Samuelson

Good morning and a warm welcome to the Third Quarter 2024 Results Presentation. With me today, I have Therese Friberg, our CFO; and Oscar Stjerngren from Investor Relations. Before I continue, I’d like to mention that this session is recorded and will be available on our website as an on-demand version.

Organic sales increased by 6.2%, driven by higher volumes in all the group’s business areas. Organic growth was strong in Latin America, especially in Brazil which continues on the trajectories ordered in the fourth quarter of 2023. In Europe, market demand declined slightly with continued weakness in the important built-in kitchen category. Despite challenging market conditions, volume and mix were favorable, supported by the attractive product offer in the mass premium segment. Price was negative, partly as a consequence of weak consumer demand in Europe; however, less negative than the market as a whole.

In the U.S., promotional activity increased year-over-year, although continued to stabilize consequentially. Aftermarket sales decreased slightly year-over-year mainly as a consequence of weather impact on shipments in the U.S. Excluding nonrecurring items, operating income amounted to SEK717 million, up from SEK314 million last year, corresponding to a margin of 2.2%. Operating income improved in Europe, Asia to SEK610 million from SEK434 million. In Latin America, operating margin increased to 6.5% from 5.6% prior year. And the gradual improvement in North America continued, with a reduction