Brief: Electrolux Professional Q2 EBITA Turns To Loss Of SEK 4 Mln

Electrolux Professional AB (publ)

24/07/2020 07:09

July 24 (Reuters) - Electrolux Professional publ AB  EPROb.ST :
    * Q2 NET SALES AMOUNTED TO SEK 1,489M (2,455)
    * EBITA AMOUNTED TO SEK -4M (418), CORRESPONDING TO A MARGIN OF -0.2% (17.0)
    * SALES IN QUARTER DECLINED BY 40%, HOWEVER IMPROVING THROUGHOUT QUARTER
    * IN JUNE, SALES RECOVERED AND HAD A 20% ORGANIC DECLINE AFTER SIGNIFICANT 50% DROP IN APRIL
AND
MAY.
    * Q2 OPERATING INCOME AMOUNTED TO SEK -18M (401), CORRESPONDING TO A MARGIN OF -1.2% (16.3).
    * AMBITION IS TO DEFINE AND START TO IMPLEMENT NEW MEASURES DURING SECOND HALF OF 2020 THAT
TOGETHER WITH ALREADY IMPLEMENTED ACTIVITIES WILL GENERATE YEARLY COST SAVINGS OF SEK 100-150M
    * QUARTER WAS HEAVILY IMPACTED BY COVID-19 PANDEMIC
    * ACTIONS WERE PUT IN PLACE DURING QUARTER TO REDUCE COSTS THAT PARTIALLY COMPENSATED FOR
RAPID
DROP IN SALES DUE TO COVID-19 PANDEMIC
    * DECLINE IN EBITA IS PREDOMINANTLY IMPACTED BY THE LARGE DECLINE IN SALES VOLUMES, BUT ALSO
A
STRONG POSITIVE ONE-TIME-EFFECT FROM A PENSION PLAN SETTLEMENT IN THE SECOND QUARTER OF 2019
    * COST-SAVING MEASURES, INCLUDING SOME STRUCTURAL SAVINGS AND GOVERNMENT SUPPORT, HAVE
REDUCED OUR
COST IN THE QUARTER BY APPROXIMATELY SEK 200M

Source text for Eikon:  ID:nWkrc64m7T 
Further company coverage:  EPROb.ST 

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