Electrolux Professional (EPRO) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw net sales rise 6.5% year-over-year to SEK 2,931m, with organic growth of 1.5% and acquisitions contributing 7.3%, despite negative currency effects.

• Profitability improved, with EBITA up 12.3% to SEK 325m and margin rising to 11.1%, driven by strong Laundry performance and recovery in Food & Beverage Europe.

• Order intake remained robust, especially in Laundry, supporting ongoing development and a cautiously optimistic outlook.

• Strong operating cash flow after investments reached SEK 441m, with cash conversion over 100% and reduced working capital on sales.

• CEO remains cautiously optimistic, citing improved profitability, margin, and cash flow despite regional challenges.

Financial highlights

• Net sales for Q3 were SEK 2,931m, up from SEK 2,752m year-over-year; EBITA margin increased to 11.1% (from 10.5%).

• EPS rose to SEK 0.66 per share, up 18% year-over-year; income for the period was SEK 187m.

• Operating cash flow after investments improved to SEK 441m (from SEK 333m); cash flow exceeded SEK 440m for the quarter.

• Net debt/EBITDA ratio improved to 1.7x, reflecting a solid balance sheet.

• Currency fluctuations had a negative EBITA impact of approximately SEK 35m.

Outlook and guidance

• Order intake in October and Q3 continues to support positive development.

• Cautious optimism for the coming quarter, with expectations of continued strong performance in Laundry and improving trends in Food & Beverage, especially in Europe and the U.S.

• Full-year tax rate guidance remains at 25%-26%.

• CapEx expected to be somewhat higher than 2% of sales in coming quarters, due to significant investments in product development.