Annual Report 2018

PDF of legal annual report with financial statements.

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Annual Review 2018

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Strong position in a challenging market environment

Major Appliances Latin America

Position and Strengths 

  • Leading market positions. Electrolux holds about 25% combined market share in Brazil, Chile and Argentina, with leadership in the cold segments and laundry. Good opportunities for long-term growth as the middle class is expected to grow rapidly in Latin America.
  • Well-established brands including Electrolux in Brazil, Fensa and Mademsa in Chile, Electrolux and Gafa in Argentina, and Frigidaire in the northern part of the region. 
  • Strong design and consumer preference capabilities resulting in a relevant product portfolio tailored to the specific consumer demands in the region. The business area has an extensive track record of ensuring a high degree of consumer preference tests before a new product is launched.
  • Local manufacturing is a competitive advantage as several of the main markets such as Brazil and Argentina are protected by customs tariffs.
  • Fast-growing channel for direct sales to consumers, and an extensive distribution network. In Brazil, the largest market in the region, sales through customers’ on-line channel accounted for 9% of Electrolux sales in the country in 2018, up from 3% in 2015.

1 Stability & Focus

2Sustainable Profitability

3Targeted Growth

Profitable Growth

Strategic focus

  • Continue to drive portfolio management to restore profitability in a changing demand situation. This is especially key in the main markets Brazil, Chile and Argentina where the business area has strong market positions. 
  • Execute re-engineering of manufacturing, including digitalization, automation and new product architectures.  
  • Reduce costs and complexity to achieve profitable niche positions in regions outside the three main markets.

Net sales and operating margin

Net Sales
Operating margin
share of net sales


Operating margin


2018 Execution

  • Organic sales growth of 9.8%, driven by price increases and product mix improvement. Cost-based price increases were implemented to mitigate impact from higher raw material costs and negative currency effects due to macroeconomic volatility. Operating income and margin improved.
  • Clear focus on cost-efficiency, with the ongoing cost-efficiency program continuing to be effectiveAn important phase of the re-engineering of the plant in Curitiba, Brazil, was concluded.
  • Investments in manufacturing re-engineering and new product architectures to drive profitable growth. 
  • Product portfolio management continued, resulting in a more focused and sharpened product offering in the most profitable categories. This contributed to mix improvements, particularly in Brazil.  
  • Reorganized operations in Colombia, Peru and Ecuador under one managerial and operational team, resulting in lower costs and more efficient channel and product portfolio management.

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