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Electrolux Q3 2020 Interim report: Strong results and cash flow on rebounding markets

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STOCKHOLM, Oct. 23, 2020 /PRNewswire/ —

The comments and figures in this report refer to continuing operations unless otherwise stated

Highlights of the third quarter of 2020

  • Net sales amounted to SEK 32,004m (30,330). Organic sales increased by 15.2%.
  • Record high operating income of SEK 3,220m (1,063), corresponding to a margin of 10.1% (3.5), mainly driven by strong volumes and prices. The comparison period included non-recurring items of SEK -290m.
  • Significant market recovery driven mainly by pent-up demand and government stimulus programs.
  • Income for the period amounted to SEK 2,356m (610) and earnings per share was SEK 8.20 (2.12).
  • Operating cash flow after investments was SEK 6,005m (2,499).
  • The Board proposes to reinstate a dividend for 2019 of SEK 7.00 (8.50) per share, to be paid in one instalment.

President and CEO Jonas Samuelson’s comment

In the third quarter Electrolux reported record earnings of SEK 3,220m, or 10.1% of net sales, driven by pent-up demand and government stimulus programs impacting consumer spending. This drove significant volume growth, and positive price and mix improvement, resulting in organic sales growth of 15.2%. The record high operating income translated into a strong operating cash flow after investments of SEK 6,005m.

The strong demand in the quarter was to a significant extent a recovery of the very low market volumes in March-May due to store closures and restrictions on movement. Demand was further enhanced by stimulus programs, more than compensating for the weaker economy caused by the pandemic. Due to pandemic restrictions during the first half of the year, we entered the quarter with unusually low inventory levels, which have remained during the quarter despite high production levels, somewhat impacting our ability to meet the strong demand across all regions. 

Sales also benefitted from consumers spending more time at home, using their appliances more intensively and allocating more of their household budgets to home improvement. This in combination with our relentless focus on consumer experience innovation has continued to improve demand for our more highly featured products, driving favorable product mix.

One great experience innovation example is the Frigidaire Gallery AirFry cooker that recently received the 2020 innovation award at the Home Depot. The AirFry cooker also delivers a significantly higher gross margin compared to traditional cookers. Innovation is truly a key pillar for creating value and that is why we will showcase how we are driving profitable growth through innovation at our online Capital Markets Update on November 17.

The Board of Directors proposed to reinstate a dividend for the fiscal year 2019 based on the recovery in earnings and cash flow. The proposed dividend of SEK 7 per share will be up for decision at an Extraordinary General Meeting on November 3. Our strong commitment to sustainability remains unchanged with the target of climate neutrality by 2050, and I am pleased that the long-term incentive program for senior managers proposed by the Board includes a substantial climate impact reduction element.

Looking into the fourth quarter, visibility remains limited as demand may be impacted by several factors, especially as the pandemic is still very much present. However, we currently anticipate that consumer demand and thus financial performance will normalize gradually going forward. Considering this and the catch-up effect during the third quarter, we are revising our market outlook for the full-year 2020 upwards. We anticipate market demand for appliances in Europe to be slightly positive, in North America to be slightly positive to positive and in Latin America to be positive. It is only the combined demand in our larger markets in the Asia-Pacific, Middle East and Africa region that we still expect to be negative for 2020.

I am very proud of how we as an organization successfully have navigated in these challenging times. My colleagues around the world has done a great job in executing on our strategy. That is why I am confident that Electrolux remains well positioned to create value.

Telephone conference 09.00 CET

A telephone conference is held at 09.00 CET today, October 23. Jonas Samuelson, President and CEO and Therese Friberg, CFO will comment on the report.

Details for participation by telephone are as follows:

Participants in Sweden: +46 8 566 426 51

Participants in UK/Europe: +44 3333 000 804

Participants in US: +1 631 9131 422

Pin code: 36830556#

Slide presentation for download:

www.electroluxgroup.com/ir

Link to webcast:

https://edge.media-server.com/mmc/p/yv4vxegt

For further information, please contact:

Sophie Arnius, Head of Investor Relations +46 70 590 80 72

Åsa Öhman, Electrolux Press Hotline, +46 8 657 65 07

This is information that AB Electrolux is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 0800 CET on October 23, 2020.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/electrolux/r/electrolux-q3-2020-interim-report–strong-results-and-cash-flow-on-rebounding-markets,c3221416

The following files are available for download:

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Salaries set to rise in 2021, but employers in the Philippines signal increased caution, says Mercer survey

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  • Companies forecast a 5.6% overall increase in salaries for 2021, but more than half say they expect changes to salary increment levels.
  • Nearly seven in 10 companies have implemented a hiring freeze
  • 14% of companies expect lower bonus payouts for 2021, with one in two stating it is too early to tell

MANILA, PHILIPPINES – Media OutReach – 1 December 2020 – Salaries in the Philippines are projected to increase in 2021 despite the economic fallout from the coronavirus pandemic. Companies in the Philippines are forecasting an average 5.6% overall increase in salaries for 2021, up from 5.3% this year.

 

This is according to the annual Philippines Total Remuneration Survey (TRS) 2020 by Mercer, a global consulting leader in talent, health, retirement, and investments. The survey polled 416 companies across multiple industries in the Philippines between April and June this year, with additional surveys conducted in July and August in light of the fast-changing market environment.

 

The projected salary increments come on the back of an uncertain economic outlook for the Philippines, with Gross Domestic Product (GDP) expected to contract by 8.3% this year. While growth is expected to rebound to 6.5% [1]in 2021, downside risks such as a slower-than-expected global recovery that could weigh heavily on trade and investment, have resulted in caution among companies.

 

Floriza Molon, Mercer’s Career Business Leader for the Philippines said, “Due to the uncertainty, more than half of the companies have indicated that they will delay the increase of salaries or revise salary increment levels. With sustained pressure on businesses to keep costs down, we see that companies are taking a cautious approach with regards to salary budgets.”

 

Across industries surveyed, the Chemical industry is expected to see the biggest rebound in salary increments at 5.5% in 2021, up from 3.9% in 2020. The Consumer, Life Sciences, Energy as well as Retail and Wholesale industries also saw slight increases compared to last year.

Ms Molon added, “While the salary increase budget remains stable in spite of the pandemic, what we are seeing is that companies are increasingly prudent with their compensation policies as well as the allocation of the salary budget. Some of the considerations include how business-critical the roles are, the potential and performance of the employees, flight risk and availability of jobs in the market.” 

Variable Bonuses for 2020 remained stable, but decreases expected in 2021


Overall, average budgeted bonuses for 2020 dipped slightly at 16%, compared to 17% in 2019. The Life Science industry saw the highest increase at 23% compared to 20% in 2019, while bonus payouts decreased in the Consumer, Logistics and Shared Services & Outsourcing industries.

Ms Molon said, “91% of companies provided bonuses in 2020, reflecting their strong performance in 2019. However, we foresee a decrease in bonus payout in 2021 due to the uncertain economic environment.”

Looking ahead, 14% of companies expect the bonus payout for 2021 to be less than the previous year, while 50% say it is too early to tell. Only 8% of companies expect budgeted bonuses to increase in 2021.

With the cautious business outlook, recruitment efforts are expected to slow in the year ahead. 69% of companies in the Philippines indicated that they have imposed a hiring freeze in 2020, with 10% reducing headcount due to the pandemic.

Embracing Flexible Working


The survey has also seen a shift to remote working arrangements among companies in the Philippines. 67% of the organization have implemented remote working arrangements in response to the COVID-19 outbreak with 58% projecting that employees will be more likely to use flexible working arrangement post-pandemic.

Teng Alday, Mercer’s CEO for the Philippines said, “Companies in the Philippines have successfully implemented flexible work arrangements amid the pandemic, with only 14% of companies stating a decrease in the level of productivity. We foresee more employers embracing flexible working arrangement which provides an opportunity for companies to review their compensation and total rewards packages more holistically to adopt variable pay and other reward initiatives such as work-from-home allowances to recognise and retain critical talent.

“As the financial impact of the pandemic continues to play out, companies are taking a cautious approach in light of cost pressures and the need to protect their core business. We encourage companies to adopt strategies that balance economics and empathy as employee engagement and retention will be critical in their road to recovery.”

About Mercer’s Total Remuneration Survey

The Total Remuneration Survey, Mercer’s flagship annual compensation and benefits benchmarking study, identifies current pay practices and benefits policies, as well as budget, hiring and turnover trends for the year ahead. In addition, Mercer also conducts regular pulse surveys throughout the year to keep up with the impact of the rapidly changing business environment and compensation and workforce trends.

For more data and insights from Mercer’s Philippines Total Remuneration Survey 2020, please see here.

About Mercer

Mercer builds brighter futures by redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being. Mercer’s more than 25,000 employees are based in 44 countries and the firm operates in over 130 countries. Mercer is a business of Marsh & McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people, with 75,000 colleagues and annualized revenue approaching $17 billion. Through its market-leading businesses including Marsh, Guy Carpenter and Oliver Wyman, Marsh & McLennan helps clients navigate an increasingly dynamic and complex environment. For more information, visit www.mercer.com. Follow Mercer on Twitter [View Image]@Mercer.

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Lee Kum Kee Sauce Group Appoints Ms. Katty Lam as Chief Executive Officer

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HONG KONG SAR – Media OutReach – 1 December 2020 – Lee Kum Kee Sauce Group announces the appointment of Ms. Katty Lam as Chief Executive Officer with effect from today.

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Ms. Katty Lam has over 25 years’ work experience with renowned multinational food companies. Prior to joining Lee Kum Kee, Ms. Lam was Danone’s Regional Vice President, Greater China — Early Life Nutrition Division. Began her career with KPMG as an auditor, Ms. Lam later joined PepsiCo China, with her last position being the Chairman, Greater China Region. During her 22-year tenure with PepsiCo, she served in different management roles in finance, marketing, beverage bottling and foods operations. Ms. Lam holds an MBA from the University of Portland, US, and a bachelor’s degree in Accountancy from the City University of Hong Kong.

Mr. Charlie Lee, Chairman of Lee Kum Kee Sauce Group, welcomed Ms. Lam: “With her extensive experience, Ms. Lam will lead the Group’s overall business strategy and development, strengthen collaboration and drive innovation initiatives to ensure the Group continues to be recognised as a global leader in Asian sauces and condiments. Together, we will work towards our vision of ‘Where there are people there is Lee Kum Kee’.”

ABOUT LEE KUM KEE

Lee Kum Kee was established in 1888 by its founder Mr. Lee Kum Sheung. With its sustainable development in 132 years, Lee Kum Kee has become a household name of sauces and condiments, as well as an international brand and “a symbol of quality and trust”. Spanning over three centuries, Lee Kum Kee is a globally renowned multinational corporation offering over 200 types of sauce and condiment to over 100 countries and regions. Please visit www.LKK.com for further details.

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“Emma by AXA”, your insurance and healthy living partner Download now to enjoy first-in-market free “Post-Vaccination Protection”

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HONG KONG SAR – Media OutReach – 30 November 2020 – Emma by AXA — AXA‘s all-in-one insurance & health services platform is now providing first-in-market free “Post-Vaccination Protection”. Hong Kong and Macau residents can enjoy one year of free “Post-Vaccination Protection” by downloading the Emma by AXA app and completing a simple registration. The offer is applicable to all Hong Kong and Macau residents aged 18 to 65, with a valid Hong Kong or Macau ID card. Each applicant can register for four of his/her family members (spouse or child) aged 65 or below. Limited quota only, first come-first served.

Emma by AXA has been launching in phases since May 2019, providing a comprehensive range of insurance and healthy living services, with four key features:

Symptom Checker — An AI-powered chat functionality that integrates the U.S. top medical group Mayo Clinic’s algorithms. It can understand the symptoms input by users and provide useful information.

Find a Doctor — Find the most suitable AXA panel doctors based on consultation type and preferred location.

Make a Claim — Submit medical claims based on eligibility and track the claim status at any time.

Mind Charger — A mindfulness meditation tool with selective modules guided by the renowned yoga instructor, Margaret Chung. Through this tool, users can enhance their daily lives and build up resilience by making mindfulness a regular practice. Modules include Relax and Unwind, Problem Solving, Positivity and Building Resilience.

Download “Emma by AXA” to get the first-in-market free “Post-Vaccination Protection” *

From today, Hong Kong and Macau residents aged 18 to 65, holding a valid Hong Kong or Macau identity card, can get one year free “Post-Vaccination Protection” simply by downloading the Emma by AXA mobile app and completing a simple registration. Each applicant can register for four of his/her family members (spouse or child) aged 65 or below. Limited quota only, first come-first served.

Post-Vaccination Protection: Free hospital and death benefits

Hospital benefit:  HKD700 per day for up to 10 days payable to eligible applicant who is diagnosed with an Adverse Event Following Immunisation (AEFI) within 14 days post-vaccination and is confined in a hospital.

Death benefit: A one-off lump sum of HKD100,000 payable to eligible applicant’s estate if the applicant is diagnosed with an AEFI within 14 days post-vaccination and its complications result in death.

To learn more about the “Post-Vaccination Protection”, please contact AXA Customer Service Hotline (852) 2894 4679 (Hong Kong) / (853) 8799 3778 (Macau) during office hours (9am — 5pm, Monday to Friday), or visit axa.com.hk.

Scan the QR code to download “Emma by AXA”

[View Image]

 

*Complimentary protection is applicable to adults and children who take vaccination, subject to terms and conditions. For details, please visit axa.com.hk/en/axa-post-vaccination-protection-programme.

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