Electrolux offers food-service equipment and laundry solutions for professional users. Resource-efficient products and an extensive service network give the Group a strong global position. During the year, Electrolux continued to grow by focusing on expanding in growth regions and in new, profitable markets and business segments.
Alberto Zanata, Head of Professional Products
North America represents slightly more than 35% and Europe 25% of the global market demand for professional products.
Of the Group’s professional products sales, approximately two thirds are from food-service equipment and one third from laundry equipment. About 60% of sales is generated in Europe and almost 10% in North America. Other key markets include Japan, China, Turkey, the Middle East and Africa.
Electrolux has a strong position in the European food-service market, in particular in the institutional (hospital, staff canteens, schools) and hospitality (restaurants, catering and hotels) segments. The Group is also a leading player in complete installations in a number of growth regions. Food-service equipment is sold mainly under the Electrolux brand, but also under regional brands, such as Zanussi. Examples of laundry equipment customers include hospital and hotel laundries.Electrolux also supplies products for apartment-building laundries in Scandinavia and for launderettes, mainly in North America.
During the year, Professional Products continued to grow by focusing on expanding in growth regions and in new, profitable markets and business segments, such as the growing market for fast-food chains. Examples of products developed for chains and new segments are the Electrolux high-speed panini grill and the Electrolux myPRO range of professional washers and dryers for small businesses.
The Group continued to develop intelligently designed and high-performing products with strong sustainability profiles. Innovation in the laundry sector is strongly linked to lower costs by reducing the consumption of energy, water and laundry detergent without compromising on washing and rinsing results. Electrolux professional washing machines and tumble-dryers are among the most energy and water-efficient in the market. Energy efficiency has a high priority in the development of professional food-service equipment.
Some key launches during the year included Electrolux Thermaline Modular range, a further development of the modular system for professional cooking. In Asia, a specially developed dishwasher for the Asian market was launched, which tolerates high temperatures, high humidity, power failures and variations in water pressure.
Solutions arising from the development of professional products often benefit the consumer market. Electrolux Grand Cuisine, the first and only professional cooking system designed for homes in the ultra-luxury segment, comprises a clear example of this.
Collaboration with professional users was strengthened in 2014 through a partnership with the World Association of Chefs’ Societies (Worldchefs).
An Excellence Program is in place to achieve the highest possible standards of quality and effective cost control. The aim of the program is to make Electrolux the industry benchmark from the perspective of innovation, quality, distribution lead time and customer support. Examples include shorter distribution times for Modular Cooking, the development of new dishwashers for further growth in Asia and customer contracts in new growth segments.
5%
14%
| 10 | 11 | 12 | 13 | 14 | |
| Net sales | 6389 | 5882 | 5571 | 5550 | 6041 |
| Operating margin | 11.6 | 14.3 | 10.6 | 9.2 | 11.1 |
Professional Products showed an organic growth of more than 5% in 2014. Sales grew both in traditional markets and in growth markets.
Operating income and margin improved, mainly as a result of higher sales volumes, higher prices and enhanced cost structure.
2,582
The new myPRO range of professional washers and dryers was developed by Electrolux in response to the needs of small businesses, such as beauty salons, fitness centers and small hotels. These customers will benefit from the range’s performance — in terms of speed, reliability and sustainability — and from its longer lifetime.
The Thermaline cooking range is designed to meet the needs of the most demanding heavy-duty kitchens in the world. It combines state-of-the-art technologies, superior productivity and cutting-edge design with the highest quality standards for high-productivity professional kitchens. The new modular line launched in 2014 strengthens the competitive position of Electrolux in the market for professional cooking ranges.