Release Date: July 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Electrolux AB (ELRXF, Financial) outperformed the market with its three major brands: Electrolux, AEG, and Frigidaire.
- The company improved its operating margin from 1.2% to 2.5%, with a positive margin in North America.
- Electrolux AB (ELRXF) reported an organic growth of 1.8%, driven by North America and Latin America.
- The company achieved cost efficiencies, delivering an additional SEK0.6 billion year-over-year.
- Electrolux AB (ELRXF) received 16 design awards, highlighting its strong design capabilities and innovation.
Negative Points
- The European market remains depressed, with a 1% decline and volumes 11% lower than in 2019.
- Electrolux AB (ELRXF) faced negative price developments in Europe due to high competition and promotional pressure.
- The company experienced currency headwinds in Brazil and Argentina, impacting financial performance.
- Electrolux AB (ELRXF) reported a negative operating cash flow after investments of SEK741 million in the quarter.
- The company is facing challenges with tariffs in North America, impacting cash flow and requiring price adjustments.
Q & A Highlights
Q: Can you explain the difference in competitive landscapes between the US and Europe, and how it affects pricing strategies?
A: Yannick Fierling, CEO, explained that while the competitive landscape is similar in both regions, the reaction to geopolitical uncertainty has been different. In Europe, consumer confidence is lower, leading to intense promotional activities, whereas North America has shown resilience despite inflation. Electrolux has been able to increase prices in North America to offset tariffs, a strategy that has been successful despite not all competitors following suit.
Q: How is Electrolux managing cost-cutting efforts, and what can be expected in the second half of the year?
A: Yannick Fierling noted that Electrolux achieved SEK2 billion in cost efficiencies in the first half of 2025, with a target of SEK3.5 billion to SEK4 billion by year-end. The company is focusing on product cost reduction and better sourcing. Despite a strong second half in 2024, Electrolux expects continued year-over-year improvements in cost efficiencies.
Q: What is the outlook for marketing expenses, especially with new product launches like the pizza feature in the US?
A: Yannick Fierling and Therese Friberg, CFO, indicated that marketing expenses will increase significantly in the second half of 2025 to support new product launches. They emphasized the importance of marketing in driving growth and innovation, with a focus on ensuring a return on investment.
Q: How is Electrolux handling the impact of tariffs in North America, and what are the expectations for the second half?
A: Therese Friberg explained that while tariffs have impacted cash flow, Electrolux has offset these costs through price increases. The company anticipates a higher tariff impact in the third quarter but remains committed to further price adjustments to fully compensate for tariffs.
Q: Are there any signs of recovery in the European market, particularly in the new build segment?
A: Yannick Fierling stated that there are no significant signs of recovery in the European new build segment. Despite lower interest rates, construction activity remains subdued, impacting Electrolux's margins due to its strong presence in the kitchen and construction sectors.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
