Electrolux Group Interim report Q1 2025

STOCKHOLM,April 29, 2025/PRNewswire/ --

Highlights of the first quarter of 2025

• Net sales amounted toSEK 32,576m(31,077) with an organic sales growth of 7.9% (-3.7), mainly driven byNorth AmericaandLatin America.
• Operating income significantly improved to SEK 452m (-720) corresponding to an operating margin of 1.4% (-2.3). Increased volumes and a favorable mix had a positive impact on earnings, partially offset by a slightly negative impact from price development. Cost reduction actions contributed to aSEK 1.4bnpositive impact from cost efficiency.
• Income for the period amounted to SEK 42m (-1,230) and earnings per share wereSEK 0.16(-4.55).
• Operating cash flow after investments wasSEK -3,107m(-2,686), with a seasonal outflow of operating working capital.

President and CEOYannick Fierling'scomment

Solid organic sales growth and improved operating income

Organic sales growth was solid in the quarter, 7.9%, mainly driven by a positive development inNorth AmericaandLatin America. Our operating margin improved to 1.4%, up from -2.3% last year. We have successfully executed our product cost-out initiatives, from which, savings was the major contributor to theSEK 1.4bnin cost efficiency for the quarter.

Rapidly-changing market environment

The market environment was characterized by increased uncertainty as the quarter progressed. InNorth AmericaandEurope, market demand was largely unchanged. However, consumer confidence declined throughout the quarter due to economic uncertainty and concerns around U.S. trade policy developments. InLatin America, consumer demand increased marginally, primarily driven byBrazil, in a market characterized by rising competitive pressure.

Effects from changes in U.S. trade policies had a minor impact in the first quarter. It is impressive how our entire organization is acting with speed and agility to mitigate and adapt to the rapidly-changing market environment. We will continue to closely monitor this to ensure that we take appropriate actions going forward, including price changes.

Outlook for 2025 impacted by increased uncertainty

Going into the second quarter of 2025, the demand outlook for home appliances is increasingly uncertain. On the back of this, we have adjusted our market outlook forNorth Americafor the full year 2025 compared to 2024 from"Neutral"to"Neutral to negative". The outlook for market demand forEurope&Asia-Pacificas well as Latin American remains"Neutral". We have also adjusted our business outlook due to changes in U.S. trade policies. We now expect a positive impact from volume/price/mix primarily as a result of our price increases aimed at offsetting tariff related cost inflation reflected in the change in external factors from"Negative"to"Significantly negative".

Profitable growth - a key strategic pillar going forward

One of our major strategic pillars is to drive profitable growth. To ensure this, we continued to invest in innovation and marketing in the quarter. Our improved market position demonstrates our ability to create sustainable consumer experiences and continuously improve our offering. With good progress on cost reductions in the first quarter we are well on track to reachSEK 3.5-4bn in savings for the full year 2025. It is also crucial to continue to improve the results inNorth Americawhile simultaneously navigating the current uncertain market environment.

Webcast and telephone conference 09.00 CET

A video webcast and simultaneous telephone conference is held at 09.00 CET today,April 29.Yannick Fierling, President and CEO, andTherese Friberg, CFO, will comment on the report.

If you wish to participate via webcast, please use the link below. Via the webcast you are able to ask written questions.

https://edge.media-server.com/mmc/p/fxvkiute

If you wish to participate via telephone conference please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the telephone conference.

https://register-conf.media-server.com/register/BIc0cda4349c7f494e818a506c39f0456c

Presentation material available for download

www.electroluxgroup.com/ir

For further information, please contact:

Ann-Sofi Jönsson, Head of Investor Relations and Sustainability Reporting

Email:ann-sofi.jonsson@electrolux.com

Phone: +46 730 251 005

Maria Åkerhielm, Investor Relations Manager

Email:maria.akerhielm@electrolux.com

Phone: +46 70 796 3856

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SOURCE Electrolux Group