Posted 23rd July

Electrolux sees drop in sales in Q2 2019

23rd July 2019 - 10:19am
money matters, electrolux group, financial, report, sales, growth, europe, market, kbb, kbbdaily, appliance

Electrolux Group has reported a 2.7% decline in sales for the second quarter of 2019, which the company said was “driven by lower volumes”, while its European operations saw organic sales growth of 0.8% for the period.

According to Electrolux, the sales growth seen in Europe was due to improvements in product and brand mix as well as price increases. Strong performance was seen within the built-in kitchen product and laundry product categories.

The group said overall market demand in Europe in Q2 grew by 1% year-on-year, driven by “strong growth” of 4% in Eastern Europe compared with more stable demand in Western Europe. “A strong focus on innovation to improve consumer experiences is our guiding compass and a key driver for profitable growth,” said Electrolux Group president and CEO Jonas Samuelson, pictured.

“It is therefore encouraging to see that we once again have a favourable earnings impact from improved mix by selling more high-margin products and we continue to invest in marketing to support the major launches we have this year.”

He added: “Based on current trade tariff levels, we estimate the negative year-over-year impact from raw materials, trade tariffs and currency to be approximately SEK 1.4-1.6bn in 2019, compared to the previous estimate of approximately SEK 1.7-1.9bn.

“In the first half of 2019, price has fully offset this headwind and we expect that to be the case also for 2019 as a whole. The uncertainty on trade tariffs continues to impact our visibility.”

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