The Electrolux share
In 2018, Electrolux faced increased headwind from raw material costs, trade tariffs and currency. This was to a large extent offset by organic growth driven by price increases and innovation as well as by cost efficiencies. Electrolux total market capitalization, however, decreased by 29% to SEK 60.5 billion. Total return for the Electrolux B share was -26% in 2018.
Share price development
The Electrolux B share decreased by 29% in 2018, underperforming the broader Swedish market index, OMX Stockholm, which decreased by 8% during the same period. The relative underperformance was mainly related to increased headwind from raw materials, trade tariffs and currency which impacted earnings negatively. Electrolux delivered positive organic growth and several business areas achieved an operating margin excluding non-recurring items above 6%. This was driven by mix development and a focus on mitigating cost headwinds through pricing as well as cost efficiencies. The share price development gained momentum at the end of the year, supported by good execution of implementing price increases, and the Electrolux share showed a relative strength versus the market index at the latter part of the year.
The opening price for the Electrolux B share in 2018 was SEK 264.30. The highest closing price was SEK 278.20 on January 31 while the lowest closing price was SEK 172.20 on October 26. The closing price for the B share at year-end 2018 was SEK 187.10. The beta value of the Electrolux B share over the past five years is approximately 1.1.
Total shareholder return during the year was -26%. Over the past ten years, the average total return on an investment in Electrolux B shares has been 14% annually. The corresponding performance for the OMX Stockholm Return Index was 13%.
The Electrolux share is listed on the exchange Nasdaq Stockholm. The share capital of Electrolux amounts to SEK 1,545m corresponding to 308,920,308 million shares. In the U.S., Electrolux shares are traded over-the-counter market in the form of American Depositary Receipts (ADRs) under the symbol ELUXY.
Approximately 38% of the share capital and 30% of voting rights was owned by foreign institutions, mutual funds and private investors. Investor AB is the major Swedish shareholder with a 16.4% holding of the share capital and 28.4% of the voting rights as per December 31, 2018 (Source: Euroclear and Holdings).
Electrolux maintains a number of long-term incentive programs for senior management. Since 2004, the Group has three-year performance-based share programs. At year-end 2018, the incentive programs had a minor impact on the dilution of the total number of shares. More information on performance-based share programs is in Note 27 in the Annual Report 2018.
Electrolux — a sustainability leader in the household durables industry
In 2018, and for the twelfth consecutive year, Electrolux was recognized as a leader in the household durables industry in the prestigious Dow Jones Sustainability Index (DJSI). Electrolux thereby ranks among the top 10% of the world’s 2,500 largest companies for social and environmental performance. Additionally, Electrolux has received recognition from other indexes and organizations, including Sustainalytics. Electrolux was also awarded a position on the 2018 Climate A List by CDP.
For more information about the share visit Electrolux Group site