Operational efficiency

Strong track record of delivering cost reductions

Electrolux has over the last three years reduced costs by SEK 5.6bn and strives to continuously reduce variable and structural costs through improved ways of working, a higher resource efficiency and increased usage of digital tools and processes. In addition to Group wide measures to streamline and optimize manufacturing and increase efficiency, each business area works intensively to reduce working capital to release resources that can instead be invested in growth activities.

Global product architecture and automation program is instrumental to continue drive cost efficiency

Electrolux global product architecture and automation program is incremental to drive efficiency to strengthening the cost competitiveness in production and increase flexibility and product speed to market. This also allows the delivery of competitively priced, high quality products for both the mass and the premium segments and will open up growth opportunities in addition to significant cost improvements starting in 2020.

Global presence offers economies of scale

Electrolux has a competitive cost structure with a high degree of variable costs; about 70% of the total cost base in 2018. The cost structure enables Electrolux to be flexible and quickly adapt to external risks such as fluctuations in market demand or increased commodity prices. By increasingly introducing modularized products, Electrolux can leverage its global scale in terms of centralizing procurement and R&D.

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Consumer focus
Strong Financial position