February 8, 2023

eatcilantrothaikitchen

Home living innovation

UPDATE 3-Electrolux sees improve from remain-at-property craze through initial fifty percent of 2021

* Q4 working financial gain 2.5 bln SEK vs consensus 2.3 bln

* Sees bigger demand from customers yr/yr throughout marketplaces in H1 2021

* Expects to pass on increased raw substance expenses to shoppers

* Sees larger whole prices in 2021

* Sees better sales in 2021 vs 2020 (Provides aspects, track record, CEO comment, shares)

STOCKHOLM, Feb 2 (Reuters) – Europe’s most important house appliances maker Electrolux expects unusually strong demand from customers to continue in the coming months after the keep-at-dwelling trend through the pandemic boosted gross sales in the next fifty percent of 2020.

The Swedish team described on Tuesday a more substantial than expected increase in fourth-quarter earnings and proposed lifting its dividend.

“Sales continued to reward from consumers allocating additional of their residence budgets to home enhancement and we also executed nicely on rate and blend,” Main Executive Jonas Samuelson explained in a statement.

Working revenue landed at 2.50 billion crowns ($297 million) towards a calendar year-before 960 million and a forecast 2.34 billion in Refinitiv poll of analysts.

“For the 1st fifty percent of 2021 we anticipate that the strong client need from enhanced house-enhancement shelling out expert during the 2nd 50 percent of 2020 will continue to be to some extent,” the company said.

That, combined with small inventories at vendors, intended demand would be larger than in the very first 50 % of 2020, Electrolux stated, including nevertheless that potential and element availability would probable continue to be constraining components.

Samuelson said that though desire may perhaps normalise in the next fifty percent of the calendar year, group income were being probably to rise from 2020. “We hope growth in the complete 12 months 2021 in terms of quantity, price and item blend,” he told Reuters.

U.S. rival Whirlpool last 7 days also forecast increased gross sales this yr.

Electrolux said it anticipated to go on mounting metallic selling prices to shoppers in 2021 – but greater expenditures for logistics, ongoing plant efficiency enhancements and marketing would probably necessarily mean larger net fees in the 12 months.

The group’s shares, which have risen 10% in the earlier 12 months, have been minimal adjusted on the working day by 1130 GMT.

The group, which in March spun off its device Electrolux Qualified, proposed a dividend of 8 crowns per share for 2020, up from 7 crowns for 2019 and in line with expectations.

$1 = 8.4174 Swedish crowns Reporting by Anna Ringstrom enhancing by Johannes Hellstrom, Simon Johnson and Susan Fenton