Electrolux closed the first quarter 2023 with a net sales increased to 32,734 million Sek, corresponding to an organic growth of 2.2%. Price remained solid, while weaker market demand resulted in lower volumes for the Group as a whole. New product ranges contributed to higher volumes and market share gains for the business areas North America and Latin America. Operating income amounted to -256 million Sek, corresponding to a margin of -0.8%. Operating income included non-recurring item of -561 million Sek, that for the first quarter of 2023 related to the discontinuation of production at the Nyíregyháza factory in Hungary in 2024. Excluding non-recurring items, operating income amounted to 305 million Sek, corresponding to a margin of 0.9%.
According to the company, the year-over-year decline in underlying operating income was mainly a result of lower volumes. North America’s earnings improved significantly sequentially, although the business area still reported a loss in the quarter. The Group-wide cost reduction and North America turnaround program is progressing according to plan and had a positive contribution.
«Our number one priority for 2023 – commented Jonas Samuelson, Electrolux president and CEO – is a successful implementation of the Group-wide cost reduction and North America turnaround program. I am therefore pleased that the execution is going according to plan with positive contribution in the quarter. Underlying operating income improved sequentially to 305 million Sek in the first quarter 2023 compared to -612 million Sek in the fourth quarter 2022, mainly driven by business area North America. Organic sales growth in the quarter was 2.2%. Our solid price execution continued, while volumes declined as a result of the weaker market demand compared to last year. Lower consumer purchasing power also resulted in pressure on sales mix».
