Full-service offering gives unique strength
Position and Strengths
Full-service offering gives Electrolux a unique ability to service the professional customers. Electrolux professional offering covers food-service, beverage and laundry solutions, as well as a global sales & customer care organization. Electrolux is the only global player with a complete offering under one brand in the professional segment.
Strong positions in the European food-service and laundry markets, in particular in the institutional (hospital, staff canteens, schools) and hospitality (restaurants, catering and hotels) segments. Market shares are growing in Western European markets, East Europe and North America, and the Group is a leading player for complete large, innovative installations in a number of growth markets.
Good track record of profitable growth execution. The sales CAGR 2014–2018 amounted to 6%, and the average operating margin during that period was 13%.
Electrolux is a leader in innovation and technology integration through focused investments in new products and technologies including connectivity and sustainable solutions. The laundry L6000 (new generation of washers and dryers) launched in 2018 was the first to receive an ergonomic certification; an area of increasing importance for professional users.
1 Stability & Focus
- Leverage the growth in the food service business; strengthening the offering through investments in customer care, marketing and innovation.
- Leverage the two beverage acquisitions (Grindmaster-Cecilware and SPM Drink Systems) to expand the beverage business and the U.S./Chains presence.
- Continue to invest in connected products and solutions. Connectivity advances faster in the professional segment compared to the consumer market as uptime is crucial for the professional users.
- Improve presence in the aftermarket, in order to strengthen customer relations along the lifespan of the products and increase sales (service packages, consumables and accessories) as margins are higher in this business. A large installed base of products gives high aftermarket sales potential.
- Leverage the acquisition of Schneidereit, a supplier of laundry rental solutions for professional customers to grow market shares with innovative business model.
- Pursue acquisitions to further strengthen the product offering and to increase the presence in the U.S. and chain business.
Net sales and operating margin
Share of net sales
- Organic growth of 3.5% with increased sales across all three segments food, laundry and beverage. Continued profitable growth from product innovation and strengthened market positions. Earnings remained solid. Price increases and higher sales volumes offset increased costs for raw material and additional investments in customer care and innovation.
- Investments in a global customer care program to improve service levels on installed products and offer additional service solutions. A new and innovative program named Essentia, was launched in January 2018 with a progressive roll-out around the world.
- Launch of new laundry line (L6000), based on new product architecture, using cutting edge innovations and connectivity solutions to maximize uptime and best-in-class energy savings.
- Investments in a new lab and R&D center for laundry in Ljungby, Sweden, to further strengthen the pipeline of innovative solutions. Investments to increase automation in the production plant for food-service equipment in Vallenoncello, Italy, were also made.
- Electrolux acquired Schneidereit, a German supplier of laundry rental solutions for professional customers. The acquisition enables Electrolux to develop its offering within the professional laundry business and supports the long-term profitable growth in Europe.
- Acquisition of SPM Drink Systems, an Italian leading manufacturer of primarily professional dispensers of frozen beverages. SPM’s product portfolio expands Electrolux Professional’s beverage offering to include a comprehensive range of products. The acquisition is part of the strategy to strengthen Electrolux full-service offering.