A transition year
Home Care & SDA
Position and Strengths
- Strong position in Floor Care. Electrolux has been at the forefront of vacuum cleaning innovation for 100 years and has a strong brand recognition in vacuum cleaners. The Group has a strong presence in the premium segment and holds leading positions in EMEA, Latin America and parts of Asia/Pacific.
- Well-established brand in key markets globally, such as the Nordics, Eastern Europe, Brazil, Japan, Korea and Australia.
- Global player with access to Major Appliances’ brand and distribution channels resulting in competitive advantages both in terms of sales and, especially, costs.
Strategic focus
- Complete the product portfolio review by exiting unprofitable and non-core product categories and markets.
- Build a strong position in robotics and cordless vacuums, supported by innovative new products such as the Pure i9 robotic vacuum cleaner and the Pure F9 cordless vacuum cleaner.
- Build Wellbeing ecosystem with floor care and air care connected to deliver enhanced consumer experiences. Clear consumer benefits put Wellbeing at the forefront of the connectivity trend.
- Drive growth through innovative solutions in direct sales, digital marketing and connected appliances. Leverage the existing B2C platform in online sales and digital marketing to build relationships directly with consumers.
Net sales and operating margin
SEKbn
108642
0
2.3
1.4
2.9
5.5
5.2
%
108642
0
1415161718
Net Sales
Operating margin excl. non-recurring items
share of net sales
6%
Operating margin
5.2%
2018 Execution
- Organic sales declined by 1.1%. Operating income and margin were fairly in line with last year.
- Product transition continued with lower sales volume due to market decline in corded vacuum cleaners. The trend shift in market demand toward cordless products accelerated during the year.
- Groundbreaking launch of a premium cordless vacuum cleaner Pure F9 creates a new segment to strengthen position in the growing cordless segment.
- The product portfolio review was completed and the product mix improved during the year as a result of active product portfolio management.
- In line with the strategy to focus on global brands and product categories, the U.S.-based commercial and central vacuum cleaner businesses were divested.
- A partnership was established with startup Drop, to further develop the smart kitchen ecosystem. This enables Electrolux products to work seamlessly with Drop’s online platform and app, which provide tailored recipes and guidance to the capabilities of Electrolux appliances.
Electrolux
Electrolux shapes living for the better by reinventing taste, care and wellbeing experiences that make life more enjoyable and sustainable for millions of people. Through our brands, including Electrolux, AEG and Frigidaire, we sell more than 60 million household and professional products in more than 150 markets every year.
S:t Göransgatan 143
SE-105 45 Stockholm, Sweden