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Electrolux Professional prepares for stock exchange listing

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Electrolux’s professional division saw a slight dip in global revenues last year as it prepares to list on the stock exchange as a separate entity.

In its newly-released 2019 report, the Electrolux group said that organic sales from its Professional division fell 0.3% to SEK9.3 billion ($964m) year-on-year.

Volumes decreased in the food and beverage segment, while price development contributed positively, it said.

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Acquisitions had a positive impact of 4% on sales, with SPM Drink Systems and UNIC among the companies it bought during the year. Operating income and margin declined year-over-year.

The decrease was mainly due to lower volumes, partly relating to preparations pertaining to the separation of Electrolux Professional, but also increased investments in marketing and innovation.

Operating income included initial costs for setting up a new IT infrastructure, higher ongoing costs for operating as a standalone company as well as a positive effect from a pension plan settlement in Sweden.

In 2019, an efficiency programme was also launched to offset the additional higher cost as a standalone company.

Electrolux Professional AB is set to list on the Nasdaq Stockholm on 23 March.

Bosses at the firm believe that splitting from the domestic appliances business will enable both companies to focus on their respective opportunities to drive profitable growth, with distinct strategies for innovation and customer focus, as well as a high level of capital efficiency.

Tags : ElectroluxElectrolux Professionalfinancialfinancials
Sam Lewis

The author Sam Lewis

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