ELRXF - AB Electrolux (publ) (ELUXY) Q4 2023 Earnings Call Transcript
2024-02-02 10:02:06 ET
AB Electrolux (publ) (ELUXY)
Q4 2023 Earnings Conference Call
February 2, 2024 3:00 AM ET
Company Participants
Sophie Arnius - Head of Investor Relations
Jonas Samuelson - President and Chief Executive Officer
Therese Friberg - Chief Financial Officer
Conference Call Participants
Johan Eliason - Kepler Cheuvreux
James Moore - Redburn
Akash Gupta - JPMorgan
Martin Wilkie - Citi
Alex Virgo - Bank of America
Henrik Christiansson - Carnegie
Jordan Meighan - Deutsche Bank
Timothy Lee - Barclays
Presentation
Jonas Samuelson
Good morning and a warm welcome to Electrolux Group's Fourth Quarter 2023 Results Presentation. With me today I have our CFO, Therese Friberg, and for the final time our Head of Investor Relations, Sophie Arnius.
I'd like to mention that this session is recorded and will be available on our website as an on-demand version. For the full year 2023, challenging market conditions have continued to pressure profitability, most significantly in North America, but also to some extent in Europe and Asia Pacific, while Latin America has performed very well in a more stable market environment than we have experienced in recent years in most countries there.
Consumer demand was impacted by inflation and interest rates in most parts of the world, resulting in lower unit volumes. Overall, price remained a slightly positive factor for the calendar year, but increasing promotional activity progressively turned net price negative in the second half of the year. Specifically, in North America, unit volume demand held up at relatively good levels, but only because of significantly reduced market transaction prices. We saw continued positive contribution from product mix as we focused on leveraging our attractive and innovative product offering despite an overall negative market mix development as consumers increasingly looked for lower price products.
The Groupwide cost reduction and North America turnaround program delivered SEK 5.5 billion of savings, but this was partially offset by negative external factors, primarily from currency but also excess inflation and energy cost increases. Full year EBIT of SEK 0.4 billion was not satisfactory and heavily impacted by a weak Q4 in North America as previously communicated. Given the continued and accelerating headwinds, a further step up in our cost reduction measures was announced in the fall....
AB Electrolux (publ) (ELUXY) Q4 2023 Earnings Call Transcript