Note 17 Trade receivables
|
|
2012 | 2013 |
|---|---|---|
| Trade receivables | 18,962 | 19,977 |
| Provisions for impairment of receivables | -674 | -536 |
| Trade receivables, net | 18,288 | 19,441 |
| Provisions in relation to trade receivables, % | 3.6 | 2.7 |
As of December 31, 2013, provisions for impairment of trade receivables amounted to SEK 536m (674). The Group’s policy is to reserve 50% of trade receivables that are 6 months past due but less than 12 months, and to reserve 100% of receivables that are 12 months past due and more. If the provision is considered insufficient due to individual consideration such as bankruptcy, officially known insolvency, etc., the provision should be extended to cover the extra anticipated losses.
Provisions for impairment of receivables
|
|
2012 | 2013 |
|---|---|---|
| Provisions, January 1 | -904 | -674 |
| Acquisition of operations | — | -3 |
| New provisions | -168 | -109 |
| Actual credit losses | 352 | 250 |
| Exchange-rate differences and other changes | 46 | — |
| Provisions, December 31 | -674 | -536 |
The fair value of trade receivables equals their carrying amount as the impact of discounting is not significant. Electrolux has a significant concentration on a number of major customers, primarily in the US, Latin America and Europe. Receivables concentrated to customers with credit limits amounting to SEK 300m or more represent 32.8% (29.0) of the total trade receivables. The creation and usage of provisions for impaired receivables have been included in selling expenses in the income statement.
Timing analysis of trade receivables past due
|
|
2012 | 2013 |
|---|---|---|
| Trade receivables not overdue | 17,000 | 17,784 |
| Less than 2 months overdue | 967 | 1,206 |
| 2-6 months overdue | 249 | 402 |
| 6-12 months overdue | 72 | 49 |
| More than 1 year overdue | — | — |
| Total trade receivables past due but not impaired | 1,288 | 1,657 |
| Impaired trade receivables | 674 | 536 |
| Total trade receivables | 18,962 | 19,977 |
| Past due, including impaired, in relation to trade receivables, % |
10.3 | 11.0 |
CEO Statement
In 2013 we continued to deliver above our growth target and delivered 4.5% in organic sales growth.
CEO Statement
I'm convinced that raising product efficiency for the growing middle class is where long-term shareholder value creation lies.
Our products
Electrolux is the only appliance manufacturer in the industry to offer complete solutions for both consumers and professionals. The focus is on innovative and energy-efficient products in the premium segments.
Sustainability
Achieving the Group's vision of sustainability leadership is crucial to realizing the business strategy. The objective is to develop smarter, more accessible, resource-efficient solutions that meet people's needs and improve their lives. Read the comprehensive sustainability performance review.
Awards & recognition
Financial Reporting
Net sales for the Electrolux Group in 2013 amounted to SEK 109,151m, as against SEK 109,994m in the previous year. The organic sales growth was 4.5%, while currencies had an impact of -5.3%.
