Electrolux AB, a leading Swedish manufacturer of home appliances, has reported a significantly larger loss in the fourth quarter alongside slightly reduced net sales.
Looking ahead to 2024, the company anticipates that weakened consumer sentiment will persist, with trends towards purchasing less expensive items and delaying the purchase of non-essential goods.
The company expects demand in major markets to become more stable over the course of the year. Meanwhile, full-year demand for core appliances in 2024 is predicted to be on par with the figures of 2023 across all regions.
The quarterly loss rose to 4.11 billion Swedish kronor, up from a loss of 1.92 billion kronor the previous year. Loss per share also increased, from 7.12 kronor to 15.23 kronor.
The American branch of the company continues to operate at a loss, with the fourth quarter witnessing a deficit of 1.45 billion kronor.
When excluding non-recurring items, the operating loss for the group stood at 724 million kronor for the quarter, an increase from the loss of 612 million kronor in the same period of the previous year.
In the fourth quarter, net sales were 35.636 billion kronor, a slight decrease from 35.769 billion kronor in the previous year. Organic sales decreased by 0.8 percent, primarily due to negative pricing and reduced volumes.
Reflecting a challenging financial situation, the Board of Directors has suggested there will be no dividend payment for 2023.
